17, May 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

Prospects for the euro stabilizion got smaller. Analysts increasingly talk about the further easing of monetary policy by the ECB.

The price continues lowerinhg and consolidated below 1.2940, the pair has almost reached the bottom and may soon begin to grow.

Negative U.S. data only slightly halted growth of the dollar. The negative data on the GDP of Germany and the EU as a whole gave some pressure on the Eurodollar. In addition, a number of not good economic releases from the U.S., did not add confidence to traders.

According to experts, the economic statistics of the United States has reduced the growth rate of the dollar. The pair rushed down, having reached 1.2844.

Most analysts and investors believe that the movement of the pair will be limited in a strict range 1.2800 - 1.3200.

The price is being traded below the Ichimoku cloud. Tenkan and Kijun are higher than the price. Ichimoku cloud is directed downward.

Bollinger bands are widening and directed down.
MACD continues lowering.

Trading recommendations

We believe that the EURUSD has found a strong support at 1.2840 and will consolidate in the range 1.2940/1.2840 soon. Before the movement becomes bearish again, the pair may grow to 1.2940. Then the price will rebound from this level and rush to the bottom of the range in the area ​​1.2760.