11, December 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

Euro continues its upward trading. Obviously, the European Central Bank supported the euro when it did not change the monetary policy and left interest rates unchanged. However, the favorable the USA labor market statistics could undermine the position of the pair. Last week, the U.S. unemployment rate significantly dropped while the Non Farm Payrolls reached 208,000 vs. 180,000.

The U.S. economy is gaining strenghth and economic European leaders on the contrary are losing their positions. Thus, the manufacturing orders in Germany dropped sharply in October to 2.2%, experts believe that the cause is the decline in orders for capital goods.

EUR/USD keeps growing. Chinkou Span is below the price, and the price is above the Ichimoku cloud. We have a strong buy signal. Tenkan-Sen and Kijun-sen are following the pair up, both lines are directed upwards. The Cloud is growing.

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

Bollinger bands are directed upwards. The bands are in a lateral movement changing the direction.
MACD histogram is still located in the positive zone, continuing to grow.

Trading recommendations

We recommend long positions after the breakdown of the resistance level 1.3750 with stop-loss at 1.3725 and 1.3800 as a target.