20, January 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The pair continues to trade within the framework of support 1.3540–1.3650. If it remains above its lower boundary, risks will be buoyant and the possibility of an upward trend with the target to fix above the resistance at1.3830 and testing the level 1.4000 will remain. If the pair falls and stays below 1.3540, its prospects will deteriorate and the way for a gradual decline to the support 1.3295 or 1.3100 will be opened. The reverse trend reversal can take place from any of mentioned levels.

We have a southern movement. The sell signal is confirmed and strong. The price is being traded below the cloud and above the Chinkou Span.

The downward movement will be until the Kijun-Sen is above the price. Kijun-Sen and Tenkan Sen are directed downwards.

Bollinger Bands are turning downwards.
MACD is in a negative area, the histogram is descending.

Trading recommendations

The retest of the resistance level 1.3645 did not lead to a breakthrough; there was a small rebound downward. It is possible that today there will be another retest of the resistance level 1.3645, and if it is false, the price will rebound to the support level 1.3570.

The 1.3540 breakthrough will allow sellers to lower the price to 1.3485.