19, September 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The pair is in a bullish trend. The FED decided not to close the support program thus surprised everyone.
In addition to this news, the euro growth was also supported by the German ZEW sentiment in September, the economic expectations index rose to 49.6, that in April 2010 the highest level. In August it was at 42.0.

However, the upward movement has limited ECB plans that interest rates will remain unchanged or will be reduced over a long period of time.

According to the Ichimoku analysis the pair is located in an uptrend. The pair keeps growing. The EUR/USD broke the Ichimoku cloud up. Tenkan -Sen and Kijun -Sen are directed upwards. Tenkan -sen is below the price. The cloud is directed up.

Bollinger bands are directed up broadening.
The MACD histogram has left a negative zone and growing.

Trading recommendations

The pair jumped out after FED’s decision. The pair overcame 200 points within an hour. We believe that pair remains on the present level or it is possible a pullback to 1.3416.