18, December 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The U.S. industrial output grew by 1.1 % in November comparing with October, while traders expected growth by 0.6%. This is the maximum growth rate for a year. Data for the previous month was revised upwards. Capacity Utilization Rate grew for 0.8 % till 79%, exceeding the expectations.

The euro grew after two days of decline amid rising Manufacturing PMI activity at the euro-zone. Preliminary PMI index for the manufacturing sector grew to 31-month high maximum in December. The activity at the services sector of the euro zone fell to 4-month low level at the same time. Euro zone PMI composite index strengthened as a result only up to 3-month high level.

The pair is growing though it is in a flat now. Kijun -Sen and Tenkan-Sen are horizontal. The price is above the Cloud. The upward movement remains as long as the Kijun-sen is below the price.

Bollinger indicates a flat. The bands are horizontal.

The MACD is in the positive area, just below the signal line. The histogram is reducing, which gives a signal of a possible sale.

Trading recommendations

The price still cannot break above 1.3800. The last retest of this level did not lead to any result as well. The potential target is the support 1.3700. As a result of breaking down 1.3700, the next target may become a trendline 1.3650.