20, March 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

Euro is losing its positions, the reason is simple - Cyprus. The market situation is still uncertain, as the result, the activity of traders is low, the market is extremely weak and the pair is working out new low levels near 1.2890.

Cyprus parliament postponed the decision on the issue on Wednesday. We hope that the decision will be made today. If Cyprus gets assistance that will reinforce the pair as the result it will grow. Otherwise it will keep falling.

The pair is below the Ichimoku cloud. The pair continued falling on Tuesday. The Chinkou Span and Kijun-sen are above the price chart. The pair is being traded below the Cloud.

The downward movement will be as long as the price is below the Kijun-sen.

Bollinger bands are directed downwards. The price range reluctantly extended.
MACD histogram is in the negative zone, the signal line is in the indicator and pointing down, it is a signal to sell.

Trading recommendations

The pair is being traded below the Kijun-sen (1.2974). We recommend going short. If the pair returns to a downward movement the first target will be 1.2840 and the second is 1.2760.

If euro continues the correction the pair will go to 1.2940.

When you open orders you need to consider the fundamental analysis as well.