11, September 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

Reaction to the level of employment payrolls in the U.S. on Friday, August 6 once again accentuated the week-long uncertainty. Nervousness will continue until the meeting of the Open Market (FOMC) Federal Reserve, scheduled for the next week. The trading without direction can be characteristic for many pairs now.

According to the Ichimoku analysis the pair is located in the medium uptrend on the daily chart. Still the pair is falling on the 4 hour time-frame. The EUR/USD broke the Ichimoku cloud down. Tenkan -Sen and Kijun -Sen are directed upwards. Tenkan -sen is below the price. The cloud is directed down.

Bollinger bands are directed up broadening.
The MACD histogram has left a negative zone.

Trading recommendations

Despite the apparent divergence of volumes and growth rates, the euro continues to strengthen against the U.S. dollar, approaching to the daily trend line 1.3295. However, the resultant divergence can largely affect the rebound from the trend line, if the volume does not begin to increase during the retest of the trend itself. With its breakthrough the way down to 1.3210 - 1.3200 will be opened.