18, March 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro continues to grow. Analysts connect the rise of the euro with the EU summit that took place last week. As usual, analysts placed their hopes on the summit hopping it will bring good news.

The pair made modest and tentative attempts to consolidate above 1.300 the whole week and made a jump at Friday.

The crisis comes to the end. What the Eurozone economy needs is a working plan of its recovery.

At the end of the trading Friday pair broke Ichimoku cloud and a stopped over it

The pair started the week with a gap down to the level it started the correction. So far, the sell signal is back again. The Chinkou Span is above the price chart, the pair is trading below the Ichimoku cloud. Now the downward movement is in a priority.

The downward movement will be as long as the price is below the Kijun-sen.

Bollinger bands are broadening. The indicator is directed downwards.

MACD histogram is in a negative area and is going downwards. The indicator shows us a sell signal.

Trading recommendations

If the results of the summit are not justified themselves the pair will return to the downward movement. That is what we see right now.

The pair returned under the cloud and under the Kijun-sen. The first target is 1.2895 and the second is 1.2840.

When you open orders you need to consider the fundamental analysis as well.