14, January 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The last day of the past week’s session auctions concluded favorably for the Euro that allowed the European currency bloc to complete positively the whole five days regarding the “bucks”.

The Euro rose against the dollar.

The pair could return above the range of support 1.3590-1.3635, that increased greatly the probability of the new growth formation with the aim of fixing above the resistance 1.3830 and testing the level 1.4000.

We have a southern movement. The sell signal is confirmed and weak. The price is in the cloud and above the Chinkou Span.

The downward movement will be until the Kijun-Sen is above the price. Kijun-Sen is horizontal and Tenkan Sen are directed upwards.

Bollinger Bands are turning up.
MACD is in a positive area, the histogram is growing.

Trading recommendations

The current trend is directed downwards though the pair is correcting right now. If the pair enters the Cloud that can cancel the downward dynamics and the pair can return to the growth.

1.3740 is the first target for the growth.
Alternative variant is 1.3540 if the pair goes down.