13, December 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The U.S. dollar was trading down versus the euro, yen and the Canadian dollar, but rose against the pound, Australian and New Zealand dollar amid the lack of significant macro-statistics on Wednesday. The euro continued to grow while the pound was adjusted downwards. Euro reached the level 1.38 to the dollar for the first time since October 29. The ECB declared about the beginning of 7-day lasting round to provide the liquidity of U.S. dollar to reduce the recent deficit liquidity at the euro area money market on Wednesday.

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 the signal line. The histogram is reducing, which gives a signal of a possible sale.

Trading recommendations

The pair came to a maximum at 1.3800. The break of this level will open the way to the level 1.4000.
We expect a trend reversal to 1.3490-1.3525 as the pair is overbought.