16, December 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

Recently the American currency has managed to regain most of the lost ground versus its main competitors. Market participant received an industrial production report for October. Data came for second consecutive month along negative, indicating the problems of the European industrial sector. Two releases were published in the U.S - retail in November and weekly Initial Jobless Claims.

The upward movement remains as long as the Kijun-sen is below the price.

Bollinger indicates that the northern movement will be continued and its bands are being expanded upwards.
The MACD is in the positive area, just below the signal line. The histogram is reducing, which gives a signal of a possible sale.

Trading recommendations

The pair is trading downwards. EUR/USD formed a downward structure. We believe the first target is 1.3707 (at least). The next one is 1.3815. Then we expect the development of more deep correction.