12, August 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The upward trend was delineated at the end of last week. The main driver of the market is still speculations whether the Federal Reserve will or will not start to curtail a program of a bonds purchase this year. And if it is how soon it will?

The Kijun-Sen and Tenkan-Sen formed a "golden cross". Kijun-sen is directed down, Tenkan-sen is moving up within the cloud. The price is above the cloud. The price keeps growing.

Bollinger Bands began expanding, the bars form a side corridor.
The MACD histogram is still located in the positive zone, slightly above its signal line. The indicator continues to grow gradually.

Trading recommendations

There is an uptrend movement towards of the local maximums after the model a “triple bottom” was proved on the 4-hour chart. The level 1.3344 is broken. The price met the resistance at the level 1.3416, after which the price came back down.

The downward correction is possible onto the support field between the levels 1.3344 and 1.3304, after which we expect the development of the movement towards the local uptrend to the field of resistance between level 1.3416 and the higher border of the rising main price channel.