22, May 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The price is below Chinkou span, the sell signal is strong the price is trading below the Ichimoku cloud. The pair is between Tenkan and Kijun, the Ichimoku cloud is directed down.

Bollinger Bands began to narrow that confirms the correction.
MACD grows. Should the indicator turn down it will signal the resumption of the falling.

Trading recommendations

One of the important levels for the pair EUR\USD are 1.2703, 1.2768, 1.2789, 1. 2838,1.2912, 1.2933 and 1.2959. The pair needs more powerful information to continue its growth.

A short-term upward movement is likely at levels 1.2912 - 1.2933. Potential target for growth is the level 1.2959, which is near the place where we expect the price to consolidate. Should the price go toward this goal it can break the latter.

The downward movement may continue after the price to have broke down 1.2838. The down movement may go further to 1.2789.