11, April 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

On Wednesday, there was a growth to a local maximum 1.3100. After reaching that level the pair started the correction. The strong data from Germany helped euro to grow, the trade balance mills showed an increase, exceeding the most optimistic forecasts. The pair continues to strengthen its positions.

In the case of continued growth, the pair will continue upward movement and will go to the level 1.3150.

Chinkou Span and Kijun-Sen are below the price chart, the pair is being traded above the Ichimoku cloud.

In the case of strengthening euro will go up to the level 1.3150.

Bollinger lines are narrowing, we expect a correction.
MACD is in the positive area, the signal line left histogram, the buy signal is confirmed.

Trading recommendations

The upward movement is slowed down, it seems that all the positive has almost evaporated after ECB President Mario Draghi’s speech. The pair needs new positive news to keep the growth. Moreover, an unstable political situation in Italy still presses EURUSD.

In case of a continued growth without a correction the pair will go to 1.3150.

In case of the correction the price will go to 1.3000. The second goal is the level 1.2940.

Place a stop loss above the Kijun-sen in the case of a southern movement and below the Kijun-sen, in the case of a north one, respectively. As the price moves we move and stop level after it.

When you open positions consider the fundamental analysis and the time economical news is released.