12, March 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The single European currency was traded in a narrow sideways range versus the dollar and ended the session with a neutral result. The newsflow has not issued a significant "stimulus" that can move the market to one direction or another, and presentations from the ECB and statistics on the situation in the industry in France and Italy caused only minor fluctuations.

The first support level is 1.3800, then – 1.3760. The resistance level is 1.3925.

There is a strong northern movement. The price is above the Cloud and below the Chinkou Span. The upward movement will be until the Kijun-Sen is above the price. The Tenkan-Sen is crossing the Kijun-Sen upward. Both lines are horizontal.

Bollinger Bands indicator is broadening showing high market volatility.
The histogram is in the positive area. The indicator is growing, giving a signal to buy the euro currency.

Trading recommendations

The consolidation between 1.3890 - 1.3900 is a signal to a pullback down.

Currently, the price broke through the inclined support line 1.3870, which in turn opens the way to a strong, daylight resistance level 1.3810 - 1.3800.