11, March 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The end of the last week was a minor for the market. Euro could not keep its maximums. The pair fell to the new minimums. The reason of the fall is uncertain perspectives of the European economy and weak economic news.

We believe that the pair will be trading in a flat or will try to continue falling.

The correction is over. The pair continued its downward movement. Euro penetrated the strong level 1.3000 having stopped at 1.2940 (Bottom of Bollinger Bands) and returned back.

The sell signal is strong and confirmed. The Chinkou Span is below the price, the pair is trading below the Ichimoku cloud. The northern movement will continue as long as the price is below the Kijun-Sen (1.3046). The trend looks bearish.

The middle line of Bollinger Bands continues to decline. The price range is expanding.
MACD shows a sell signal. Its histogram began to decline.

Trading recommendations

The downward trend continues.

The first target is 1.2940. Should the pair overcome this level the price will go to 1.2895.

When opening orders you should consider the fundamental news and the time of its release.