14, June 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The Euro is again being traded above 1.33 as the volatility of the U.S. bond market is putting pressure on the U.S. currency. But Credit Suisse looks more broadly, pointing to some of the fundamental factors that give strength to the euro.

Manufacturing activity is increased, which transmits to less soft ECB position.

Credit Suisse expects that the euro/dollar be traded at 1.37 in three months and 1.40 at the end of the year. Thus there is a risk of even stronger growth.

Chinkou Span is above the price that confirms the current buy signal and indicates bullish sentiment of traders. The pair is being traded above the Kijun-Sen and Tenkan-sen, the Ichimoku cloud is directed upwards.

Bollinger bands show an upward movement, the band once again slightly expanded and directed upwards.
MACD is pointing up, indicating that the current upward movement.

Trading recommendations

There is a possibility of the corrective movement in the near future. Today to buy is very risky, despite the dominant bullish trend, we recommend to wait for pullback to the trend line.

Should the pair grow it will go to 1.3450, we recommend buying from 1.3220 in this case.

If the pair starts going down its first target will be 1.3250.