14, March 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The pair continues a downtrend being traded in a narrow corridor.

Yesterday the euro fell from 1.3060, reaching 1.2940 by the end of the trading day. The pair broke the psychological level 1.3000 having fixed underneath. Most likely the pair was influenced by of strong economic data from the U.S.

The sell signal is strong. The Chinkou Span is below the price, the pair is trading below the Ichimoku cloud. The northern movement will be as long as the price is below the Kijun-Sen (1.3020).

The Chinkou Span and Kijun-sen are horizontal, indicating the lateral movement.

All Bollinger lines are broadening.

MACD histogram is in the negative area and is directed downward, it is a strong signal to the downward movement.

Trading recommendations

The downward movement continues. In this situation, it is the best to open short positions and fix profits in the area of our targets.

The pair creates a perfect triangle and we expect a sharp move in the direction in which the price exceeds it.

The first target is 1.2895. Should the pair overcome this level the price will go to 1.2840.

When opening orders you should consider the fundamental news and the time of its release.