12, March 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The pair behaved as we thought. After Friday falling it was in a correction the whole day yesterday. Yesterday euro was growing to the cloud where it actually stopped.

Today we expect the return to the downward movement.

The sell signal is strong. The Chinkou Span is below the price, the pair is trading below the Ichimoku cloud. The Tenkan-sen is horizontal. The northern movement will be as long as the price is below the Kijun-Sen (1.3044).The trend looks bearish.

Bollinger Bands continues to go down. The price range is expanding.
MACD shows the signal to sell. Its histogram is turning down.

Trading recommendations

As we can see, the southern movement continues. We recommend opening short positions.
The first target is 1.2940. Should the pair overcome this level the price will go to 1.2895.

When opening orders you should consider the fundamental news and the time of its release.