15, November 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The dollar fell more at the end of the day, after the publication of the Yellen's speech before the Senate. Janet Yellen made it clear that the Fed should continue to support the economy through incentive measures. Support for economic recovery today is the best way for the Fed to return to a more normal politics, and the Fed still has much to do to strengthen the financial system - she said. The euro was down early in the day on weak data on industrial production in the euro-zone and fell after Pret's statements - but then it regained all the losses and even grew.

The pair continued its recovery towards 1.3565. We do not believe that the pair will overcome this milestone. The trend reversal down with an attempt to test 1.3235 or 1.3100 support is quite possible.

The pair is in a bullish trend. Chinkou Span is above the price, and the price is fixed below the Ichimoku cloud, the sell signal is weak and confirmed as the pair is being corrected upwards. Tenkan-Sen and Kijun-sen are following the pair up, Kijun-sen and Tenkan-Sen are horizontal. The Cloud is directed down.

The downward movement remains as long as the Kijun-sen is located above the price.

Bollinger Bands show a movement change. The bands are turning up.
The MACD histogram is in a negative area, its volumes are reducing.

Trading recommendations

The volume growth remains unchanged, indicating that upward correction for relief. The downward trend line 1.3495 remains a strong resistance level.

If the trend line 1.3495 is not breached, there will be a bounce down to support level 1.3350, and retest of 1.3315.