13, May 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The Initial Jobless Claims in the United States, published on Thursday, were better than it was forecasted by economists. The number of claims fell by 4.000. The publication provoked the growth of the dollar. As a result, the Euro was unable to gain a foothold above the resistance level 1.3200 and after a technical correction the pair fell to the level 1.2940.

The level 1.3000 is psychologically important, we believe that active buying will begin from this level. If the southern movement continues the pair will fall to 1.2940.

In general, the situation in the euro area remains difficult, the unemployment rate in some countries, break all records. For example, in Spain, which is second after Greece, the unemployment rate reached a new high this year.

The situation is not much better in France, where unemployment is also growing. ECB tried to revive economic activity in the EU by lowering the interest rates, but the economy is too weak and the level of economic development in the EU varies so much that it is difficult to say anything about the steady growth and changing trends. EU poised on the brink of survival.

The price is below Chinkou span, the sell signal is strong, the price is being traded below the Ichimoku cloud. Tenkan and Kijun are higher than the price, the Ichimoku cloud is directed downward.

Bollinger bands diverge and unfold down.
MACD began to decline.

Indicators suggest the falling.

Trading recommendations

We advise to go short with the first target 1.2900. Should the price overcome this target it will direct its steps to 1.2840.