13, February 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The dollar is in demand and gained against major global currencies. The main news was the fact that the U.S. House of Representatives had voted in favor of a "clean" bill (without additional conditions) to raise the limit of public debt in order to avoid a default, as the Reuters reports.

As the Minister of Finance Jacob J. Lew previously said, if the payrolls had not been approved, the government would most likely exhaust its ability to borrow by the end of February 2014.
Yesterday the Euro continued consolidation between the two zones of accumulation volumes 1.3635-1.3645 and 1.3660-1.3675.

There is a strong northern movement. The buy signal is confirmed and strong. The price is above the cloud and below the Chinkou Span. The upward movement will be until the Kijun-Sen is below the price. The Kijun-Sen and Tenkan-Sen are directed upwards.

Bollinger Bands is broadening being directed upward.
MACD is in a positive area, the histogram is growing.

Trading recommendations

The price fell to the downward trend line 1.3640 and the strong level of support. 1.3640 will be a good resistance for the Euro.
The backflow 1.3640 was in small volumes; therefore the sellers are still active and can lower the price to the support level 1.3570.