12, April 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

Yesterday the euro did not show high volatility against the dollar. The pair reached the key resistance level 1.3120 and then fell to 1.3070. Yesterday the pair was moving sideways in a narrow range 1.3080 - 1.3060.

Now the pair is consolidating at 1.3080, today the euro is unlikely to show a sharp move before the opening of the U.S. session, due to the lack of strong economic or political news.

Because of the poor U.S. economic data, the pair may grow to a maximum 1.3120.

Today, the focus should be on the following news:

The volume of industrial production in February fell by 0.4% in January, experts expect some improvement in February. In addition, data on the U.S. economy will be published on Friday. Retail sales showed a growth of 1.1% a month earlier, exceeding the forecast of 0.5%.

In the case of a continued growth, the pair will continue upward movement and will go to the level 1.3150.

Chinkou Span and Kijun-Sen are below the price chart, the pair is being traded above the Ichimoku cloud.

In the case of strengthening euro will go up to the level 1.3150.

Bollinger lines are fixed and formed an upward channel.
MACD is in the positive area, the signal line left histogram, the buy signal is confirmed.

Trading recommendations

In case of a continued growth without a correction the pair will go to 1.3150.

In case of the correction the price will go to 1.3000. The second goal is the level 1.2940.

Place a stop loss above the Kijun-sen in the case of a southern movement and below the Kijun-sen, in the case of a north one, respectively. As the price moves we move and stop level after it.

When you open positions consider the fundamental analysis and the time economical news is released.