21, June 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The chairman Ben Bernanke's allusions about a gradual folding of a stimulation program at the next meeting could weaken the euro. That will certainly have a positive impact on the U.S. dollar. It is also worth noting that the recent conference of senior officials of the euro zone, which took place in Rome had a positive value for the EU banking system. It is assumed that the amounts allocated to troubled banks will be increased to 60 billion euros.

The price is below the Chinkou-span, we have a weak and confirmed buy signal. EUR/USD is in the Ichimoku cloud. If the pair breaks the cloud down that will cancel a buy signal. The pair is being traded below the Kijun-Sen and Tenkan-sen, the Ichimoku cloud is directed upwards.

Tenkan-Sen and Kijun-Sen follow the price up both lines are directed down.

Bollinger bands are narrowing, indicating a low market activity.
The MACD is falling, having entered in a negative zone.

Trading Recommendations

Dollar formed a basis and we shall see its strong growth in the coming days. We believe that the euro/dollar will not be able to stay in the 1.32/1.33 area. We recommend placing stop-orders at 1.3400 and then we expect a development of the downward momentum towards 1.2850.