21, February 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

Nothing interesting happened in the Euro zone yesterday, the euro was traded in a narrow range, waiting for news from the U.S. about the Central Bank minutes.

The pair slightly corrected, but its prospects are still positive. The growth is expected to the resistance 1.3830 and in case of overcoming and consolidation above it the mark 1.4000 testing will follow. The area 1.3625-1.3650 is the nearest support.

There is a strong northern movement. The buy signal is confirmed and strong. The price is above the Cloud and below the Chinkou Span. The upward movement will be until the Kijun-Sen is below the price. The Tenkan-Sen and Kijun-Sen are horizontal.

Bollinger Bands is broadening being directed upward. MACD is in a positive area, the histogram is descending.

Trading recommendations

The growth volumes form the divergence third week in a row. The purchasing power is weakening. In order to approach to the 38th figure the price needs to breakthrough 1.3765. If the level is not broken, the bounce down to 1.3715 - 1.3700 will happen.