17, February 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The euro strengthened versus the dollar, European currency got the support from technical factors as well as from weak U.S. economic indicators results.

The pair resumed its growth after a brief correction. If successful, the growth to the resistance 1.3830 will be confirmed and further to 1.4000.

There is a strong northern movement. The buy signal is confirmed and strong. The price is above the cloud and below the Chinkou Span. The upward movement will be until the Kijun-Sen is below the price. The Tenkan-Sen is directed upwards, Kijun-Sen is horizontal.

Bollinger Bands is broadening being directed upward. MACD is in a positive area, the histogram is growing.

Trading recommendations

The downward trend line 1.3630 failed to stop the euro growth. Now the pair is consolidating at 1.3690, the price approached to the level on declining volumes. It is likely that the level retest will trigger short-term rebound down. The potential target of a rebound will be 1.3640.