EUR/USD (a 4-hour chart)
After a slight decline on Tuesday the pair went up, this growth was due to an increase in demand on the European currency among investors who moved their assets from a weaker yen to European securities.
The price went up and reached the key resistance level. After breaking the resistance level 1.3120 dollar rose with renewed vigor as many investors began to close their short positions.
In the afternoon, the price began to plummet, breaking through 1.3150, 1.3090 levels and tested 1.3000 by the end of the trading day. The price stopped in the Cloud.
The signal to buy is still in force. The price is below the Tenkan-Sen and Kijun-Sen, but above the Cloud. Tenkan-Sen is below Kijun-Sen. The Tenkan-Sen and Kijun-Sen are directed downwards. The Cloud has an upward direction.
Bollinger Bands are expanding. The middle line indicates a decline.
MACD is going down but shows a buy signal.
Should the pair go down it will be traded in the Cloud or breaks it. The targets for going down are 1.3000 and 1. 2940.
If the pair continues its growth, the first target will be the level 1.3090.
We forecast a weak lateral movement in the beginning of the trading day which is to go into an uptrend or downtrend. It is recommended to have a pause until the situation is clarified.
Place a stop loss above the Kijun-Sen in the case of a southern movement and below the Kijun-Sen, in the case of a north one, respectively. As the price moves we move and stop level after it.
When you open positions consider the fundamental analysis and the time economical news is released.