16, October 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The last month the euro was traded in a narrow range between 1.3450 and 1.3650, though this range has shrunk to 1.35 — 1.36 in the last couple of weeks. A few weeks ago euro rose above resistance at 1.3550 to the highest point since February, but hesitated to break 1.3650 and retreated to the support at 1.3550. Over the last week the euro fell to one-week low just below 1.35, the level was designed to offer some support. In the last 24 hours the euro has made attempts to increase again, but it again met with resistance 1.36, and stepped back.

Bollinger bands are turning up.
MACD is at the zero level.

The market is hesitating what direction to choose.

Trading recommendations

The pair fell yesterday. It reached the lower Bollinger Band line where it stopped. We expect a little consolidation here before the pair continues to fall. The next our target is 1.3416.

On the other hand if the price can break above 1.3600, the next goal will make another resistance level located at the level of 1.3630.