22, July 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The U.S. currency in the market felt the support after the news regarding the U.S. rating. Moody's increased its outlook for the U.S. sovereign credit rating from "negative" to "stable."

The price is in an upward trend. The pair has worked out a critical line Kijun-Sen and rebounded from it, completing the turn of the corrective movement. The current buy signal is strong and confirmed as Chinkou span is below the price and the price is above the Ichimoku cloud. The upward movement is targeted to the first resistance level 1.3190, which has not yet been reached.

The price stopped growing and returned onto 1.3080. The upward movement is continued as long as the price is above the Kijun-Sen.

Chinkou Span is below the price that is a confirmation of the current buy signal. The Kijun-Sen and Tenkan-Sen are directed upwards. The Cloud is growing.

Bollinger Bands indicator shows an upward movement. The bands are narrowed.
MACD is in a positive area, indicating the current upward movement.

Trading Recommendations

The pair continues to trade in a 1.3000-1.3200 range, the output of which is likely to indicate the direction of the new trend. In case of overcoming and consolidation above 1.3190 resistances the growth to the next resistance 1.3415 will be confirmed. We cannot exclude this level overcoming, that will open the way to further growth to a maximum of 1.3710.

At the same time, in case of falling below support at 1.3040-1.3080 and further consolidation below 1.3000 the downtrend for the strong support in the area of 1.2770 will be confirmed.