14, August 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

This morning, the pair was traded downward relatively to the most major currencies as investors' attention was focused on the publication of the information on the volume of industrial production in the euro area and the economic sentiment index from the Centre for European Economic Research (ZEW) in Germany, which are expected to be able to confirm economic recovery in the euro area.

The price is fixed below the critical line, and formed a new "dead cross". The current sell signal is not confirmed and weak, as Chinkou Span is below the price, and the price has just broke the Ichimoku cloud. At this point the downward movement is directed to 1.3190.

If the price passes the first target the downward movement may proceed to the second support level 1.3190. The upward movement is kept as long as the price is above the Kijun-Sen if the price consolidates below the critical line, the price may attempt to resume the downward movement.

Chinkou Span is above the price that is not proof of the current sell signal and indicates bullish sentiment of traders.

Bollinger bands show the beginning of a downward movement, the bands widen and directed slightly downward.
MACD is directed down, indicating the current downtrend.

Trading recommendations

The return to growth is possible from the support level of 1.3300 to reach the nearest aim – the resistance level of 1.3395. As the first approach was accompanied by a rebound to 1.3395 the false retest of the level can not be excluded.