18, October 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

Euro rose to a three-week high against the yen on the U.S. debt deal.

The euro rose to a three-week high against the yen, as the Senate decided to end the conflict with Barak Obama and raised the debt limit, damping the demand for refuge assets.

The Senate voted 81-18 to stop the 16-day shutdown and raise the borrowing limit. The House of Representatives is scheduled to vote next, and President Barack Obama supports the agreement.

The pair is bullish. Trendline Chinkou Span is above the price, and the price sytopped above the Ichimoku cloud, the buy signal is strong and confirmed.

The upward movement will remain until the 1.3577 level which is the line Kijun-sen is located below the price.

Trading recommendations

After a strong rebound from the support level 1.3472 the pair began to work out the horizontal channel, reaching resistance level 1.3552. There is a possibility of a false retest that will open the way to the downward trend line 1.3572.

Two levels of support, 1.3502, 1.3472 are potential targets of the rebound.