19, November 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

Yesterday the market received payments data and the trade balance for September from the Eurozone. The data on the volume of purchases of U.S. securities by foreign investors should be released in the United States. The release of positive data is favorable for the U.S. currency and if the final release comes much better than expected - we may expect a short-term decline.

We expect a range trading between levels 1.3430-1.3540.

The pair is in a bullish trend. Chinkou Span is below the price, and the price is in the Ichimoku cloud, the sell signal is weak and confirmed as the pair is being corrected upwards. Tenkan-Sen and Kijun-sen are following the pair up, Kijun-sen and Tenkan-Sen are directed upwards. The Cloud is growing.

The downward movement remains as long as the Kijun-sen is located above the price.

Bollinger bands are directed upwards. The MACD histogram is shifted into the overbought zone.

Trading recommendations

The bounce down is quite possible if the price consolidates at 1.3500 and try false retest of the resistance level 1.3525. The target of the fall is the support level 1.3300 (50 Fibo level).