11, November 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

Today we can expect the euro quotation recovery. Analysts polled by Bloomberg expect growth in its trade balance which may have little support for the euro. The main event of the day will be the publication of a block of statistics on the labor market. Due to budgetary battle between Barack Obama and the Congress we can expect the release of data below the forecast.

The bears dominate on the market. The pair is in a bullish trend. Chinkou Span is above the price, and the price is fixed below the Ichimoku cloud, the sell signal is strong and confirmed. Tenkan-Sen and Kijun-sen are directed down, both lines are horizontal. The Cloud is going down as well.

The downward movement remains as long as the Kijun-sen is located below the price.

Bollinger Bands show a continuation of a southern movement. The bands are broadening, being directed downwards.
The MACD histogram is in a negative area, its volumes are reducing.

Trading recommendations

The downward moving was accompanied with high volumes. We believe the southern movement tends to continue. There is possible a correction towards 1.3430 – 1.3450 after which we expect the next wave of falling. The first target is 1.33, the second is 1.3240.