22, April 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The last trading day was calm for the pair. The number of applications for unemployment benefits rose to the level 352.000, which is on 4.000 more than a month ago. The index of business activity in the manufacturing sector in the Philadelphia area fell to 1.3 vs. 3.

Euro reached 1.3100 against the dollar and shifted to correction.

It is likely that the pair will slowly continue to move in the range 1.3050 - 1.3100 on the current week.

The signal to buy is still in force. The price is below the Tenkan-Sen and Kijun-Sen and the pair is traded in the Cloud. The Tenkan-Sen is below the Kijun-Sen. The Tenkan-Sen and the Kijun-Sen are directed sideways. The direction of the Cloud is neutral.

The EUR/USD has reached the top of the Cloud 1.3080 it is likely to be repelled and will continue to go down to the bottom of Cloud, which coincides with the key support level 1.2940.

Bollinger lines are expanding. The middle line indicates the lateral movement.
MACD histogram fell to the negative zone and is below the signal line directing downwards, which may be a sign of the correction movement.

Trading recommendations

The political situation in Italy is still ambiguous. The German economy, so far the strongest in the EU, shows a negative trend and the statements of the Chairman Bundesbank confirmed it. It is likely that in the medium term, the EURUSD will decline and reach a level 1.3000 (1.2950).

In this situation, it is advisable to place sell orders with take-profit at 1.2950. It is also recommended to place pending orders for sale near 1.3100 (1.3120) with a take-profit at 1.2950.

If the pair resumes a growth, the first target will be the level 1.3090.

Place a stop loss above the Kijun-Sen in the case of a southern movement and below the Kijun-Sen, in the case of a north one, respectively. As the price moves we move and stop level after it.

When you open positions consider the fundamental analysis and the time economical news is released.