18, July 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

According to currency strategists at Goldman Sachs we should not believe the dollar as there are rumors of a reduction in the Fed's QE. It is believed in the bank that market participants do not quite understand correctly the management's statement of National Bank and wait for rate increases in the next two years, but it can happen much later, no earlier than 2016.

The price is still in the upward trend now. The current buy signal is strong and confirmed as Chinkou span is below the price and the price is above the Ichimoku cloud.

The price is being continued its growth to 1.3190. The upward movement is continued as long as the price is above the Kijun-Sen.

Chinkou Span is below the price that is a confirmation of the current buy signal. The Kijun-Sen and Tenkan-Sen are directed upwards. The Cloud is growing.

Bollinger Bands indicator shows an upward movement, its bands are narrowing.
MACD is in a positive area, indicating the current upward movement.

Trading Recommendations

The pair grew after several failed attempts to consolidate below 1.3030-1.3080 support area. Now to confirm the upward trend it needs to confidently overcome, and then hold above 1.3200. After that, it will continue to increase a growth to the resistance 1.3415.

However, a break above 1.3415 may be difficult, and on the approach to this mark it may turn around the trend downwards. Meanwhile, in case of overcoming the resistance of 1.3415 the way will be opened to further increase of the growth to the resistance 1.3710.

As it was before, the cancellation of a positive scenario will only happen in the case of reverse break below 1.3030-1.3080 area, followed by consolidation below 1.3000.