13, March 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The single European currency was traded in a narrow range and finished yesterday’s trading with a slight growth versus the dollar. The optimism could be decreased by the external-economic relations data, presented by Germany.

The first support level is 1.3800, then the support is at 1.3760. The resistance level is 1.3925.

There is a strong northern movement. The price is above the Cloud and below the Chinkou Span. The upward movement will be until the Kijun-Sen is above the price. The Tenkan-Sen is crossing the Kijun-Sen upward. Both lines are directed upwards.

Bollinger Bands indicator is broadening showing high market volatility.
MACD histogram is in the positive area. The indicator is growing, giving a signal to buy.

Trading recommendations

The corrective pullback from 1.3890 level has not happened.

We expect 1.3890 level retest. If the retest fails, the bounce down to the support level 1.3800 may happen.