15, October 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

EUR/USD is being traded in a fix price range against the background of uncertainty, and it ultimately ended the week slightly lower. Will it choose a new direction at the moment? German economic sentiment ZEW, industrial and inflation data are the main drivers of the market. Here are the events, and technical analysis of EUR / USD, which allow it to keep above the uptrend support so far.

The forecasts are mainly bearish, it is based on the assumption that the U.S. will solve its problems: It can be temporary or long-term solution, but removing the fear of default after October 17 (this Thursday) the term of the debt ceiling will certainly help the U.S. dollar. At the same time the Fed's permission to seal the purchase partially can also be very helpful for the U.S. dollar.

Bollinger bands are turning up.
MACD is directed upwards indicating the current correction.

Trading recommendations

If the bulls are not able to break above 1.3560, we can expect a roll back down to the support level 1.3500. The breakthrough of 1.3500 down will be accompanied by the fall to 1.3470.