18, February 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The European currency has completed last week on a positive note in a dispute with the dollar. The pair got the support from the statistics reporting that the Euro zone recovery grew in the last 2013 quarter.

The pair rose and if it manages to hold at current levels, the growth will continue to the resistance 1.3830 and further to 1.4000. Otherwise, it will probably follow a new round of decline to the support at 1.3450-1.3475 area.

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 daily resistance level 1.3700 is additional barrier to buyers.

The volumes near the level steadily fall, forming a divergence. If consolidation near 1.3700 continues we should expect a rebound down. The rebound potential targets are 1.3645, 1.3600, 1.3520.