17, December 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The U.S. dollar grew on Friday to the main European currencies, but fell vs. the yen and the commodity currencies. Euro and Pound continued a corrective decrease. The yen updated yearly low, but then grew.

The head of the BOJ - Kuroda said that the central bank would take additional measures to stimulate the economy if consumer price inflation wanes. The commodity currencies showed growth after a strong reduction of the previous week.

The pair is growing though it is in a flat now. Kijun -Sen is horizontal and Tenkan-Sen is directed upwards. The price is above the Cloud. The upward movement remains as long as the Kijun-sen is below the price.

Bollinger indicates a flat. The bands are horizontal.
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 correction is not confirmed, the break above the resistance 1.3830 is possible. If the pair breaks this level, it can grow to 1.4000
The break below 1.3490-1.3525 will give a signal of trend change and focus attention on testing the support 1.3300-1.3320.