12, December 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The important macroeconomic statistics from the Euro zone and the U.S is not expected today. Traders should pay attention to the 10-year government bonds placement which would be realized by the U.S. Treasury. According to the results of the November auctions in Germany and the United States the expansion of spreads on 10-year bonds could be observed, which generally had negative effects for the U.S. dollar.

EUR/USD keeps growing though the pair is slowing down. 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, Tenkan-Sen is horizontal. The Cloud keeps growing.

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

Bollinger indicates that the northern movement will be continued and its bands are being expanded upwards.
The MACD is in the positive area, just below its signal line. The histogram is reducing, which gives a signal of a possible sale.

Trading recommendations

Today we can expect that the rate of return will be higher than at the previous month which may give a short-term demand for the European currency. In general, today we can expect a consolidation within the range 1.3740-1.38.

The potential target is the resistance level 1.3800, where we expect a consolidation followed by corrective bounce down.