16, January 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The US dollar strengthened versus the most major currencies amid the retail sales growth in the United States, which were stronger than it had been expected. The ECB member of the Managing Board Ewald Nowotny supported the Euro by his optimistic assessment of the economic prospects of the Euro zone. The pound strengthened versus the background of inflation data.

The pair could return above the range of support 1.3590-1.3635, that increased greatly the probability of the new growth formation with the aim of fixing above the resistance 1.3830 and testing the level 1.4000.

We have a southern movement. The sell signal is confirmed and weak. The price is in the cloud and above the Chinkou Span.

The downward movement will be until the Kijun-Sen is above the price. Kijun-Sen is horizontal and Tenkan Sen are directed upwards.

Bollinger Bands are turning up.
MACD is in a negative area, the histogram is descending.

Trading recommendations

Euro did not almost change during the day. The speech of the governing Council of the ECB's member Nowotny supported the Euro. Nowotny said that the Euro zone economy growth could please traders, and he did not see prospects of deflation both in the short and in the long term.

The level 1.3645 breakthrough in the short term means a reduction in rates to the two nearest supports located at 1.3600 and 1.3570 respectively.