21, January 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The US dollar gained 0,78% on the dollar and rose to all major currencies. In addition to the strong report on retail sales the dollar was also supported by numerous presentations of the Fed last week, almost all of them endorsed the further reduction of the QE3 program. Most of all against the U.S. dollar fell Australian dollar (-2,40%). It is followed by the Euro (-0,94%), the Swiss franc (-0,80%), the Canadian dollar (to-0.65%), the New Zealand dollar (0.55 per cent), the pound (-0,33%) and the yen (-0,14%).

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 growing.

Trading recommendations

To continue the downward trend the pair needs to break the strong support level 1.3520. Before this the pair can consolidate at the levels 1.3520–1.3575. A breakthrough of the level 1.3520 downward will open the way to 1.3435 and 1.3360.