21, February 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

On Wednesday, the pair was more than active. The price was falling all the day having broken four levels: 1.3384, 1.3350, 1.3327 and 1.3300. By the end of the day the pair had tested the resistance level1.3128.

The sell is strong and confirmed. The Chinkou Span is below the price chart and the price below the Ichimoku cloud. The southern movement is not preserved, but also gaining strength.

While the price is below the Kijun 1.333 the pair will fall.

Bollinger bands are widening that confirms the southern movement.

MACD indicator is down confirming the downward movement as well.

Trading recommendations

At the moment, the euro continues to go down. Objectives for the downward movement levels 1.3221 and 1.3168.

A possible correction might be for the level 1.3350.

When we get profit of 50 - 60 points, stop-loss can be moved to a breakeven. Take Profit is placed slightly above the target levels.