20, November 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

Analysts polled by Bloomberg, expect moderate growth in the surplus of both indicators. GDP data for Q3 and the PMI index for the services sector show that we can expect the release to correspond with the forecast. For the U.S. currency Wednesday November 20 will be the main day. First, early in the morning, Moscow time, Fed Chairman Ben Bernanke will speak at the annual meeting of the National Economists Club in Washington. Market participants are still puzzled - when the Fed will start cutting QE3 and his comments can lead to movements in the foreign exchange market.

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 rising trend line 1.3525 constrains buyers. After breaking the trend line 1.3485 the way to the strong support level 1.3470 will be opened. Fixing below 1.3470 would say that the upward correction is over and continuation of the bearish trend is expected.