19, February 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

Forex market analysis tells us that the pair was in a flat the whole day. It tested the level 1.3327 and 1.3303 but returned at 1.3350 by the end of the day.

The current sell signal is confirmed and strong as the Chinkou Span is fixed below the price chart and the price is below the Ichimoku cloud.

The goal of the downward movement is still the level 1.3259 through levels 1.3327 and 1.3300. If the price consolidates below this support zone the downward movement can proceed further.

The downward movement will be strong as long as the price is below the Kidjun-sen (1.3411). If the price consolidates above this critical line we can expect the price to move upwards.

The Chinkou Span is below the price chart that is a confirmation of the current sell signal, indicating a bearish mood of traders.

Bollinger Bands are widening, its lines are directed downwards confirming the current sell signal. The price is angling down.

MACD is down and showing a sell signal.

Trading recommendations

We advise to consider a downward trading with the first target 1.3327. When overcoming this level short position become actual to the next one 1.3300 and 1.3259.

Stop loss is to be placed above the Kidjun-sen and when the price goes down you can move the stop loss after it.

Take-profit can be set slightly above the target levels.