17, October 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

European finance ministers have decided to take a step towards the creation of the Union Bank. This Bank will be created through the adoption of legislation establishing a single control mechanism of banking supervision.

There is a downward channel on the four-hour chart, but the pair will probably grow. The pair has found support on the line connecting the lows on October 9-10.

It is clear that there will be a deeper correction, while the price is below 1.3597 top of the channel, which coincides with the upper limit of the indicator Bollinger Bands. For bears a number of former highs 1.3417 - 1.3452 may be quite interesting. Falling will probably be stopped at the level 1.3438.

Trading recommendations

Currently, the price failed to break above 1.3502, but this move is seen as an upward correction, the target of which is the upper limit of the downward channel 1.3532.