22, November 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The U.S. dollar has grown significantly versus the most major currencies amid the publication of FOMC Meeting Minutes and the positive data on retail sales on Wednesday. The Fed may start QE cutting program in the coming months. The euro fell amid the backdrop of heightened speculation about the introduction of negative deposit rates.

The pair is in bullish. Chinkou Span is below the price, and the price is above the Ichimoku cloud, the sell signal is cancelled. We have a permanent buy signal. The pair is being corrected upwards. Tenkan-Sen and Kijun-sen are following the pair up, Kijun-sen is horizontal and Tenkan-Sen is going down. The Cloud is growing.

The pair left the cloud. The upward movement remains as long as the Kijun-sen is located below the price.

Bollinger bands are directed downwards. The MACD histogram is shifted into the overbought zone, still its histogram is reducing.

Trading recommendations

The pair turned and resumed the dynamic reduction. Its purpose is to test the 1.3250 or 1.3100 support. The support levels for today are: 1.3440, 1.3490 and resistance levels: 1.3515-1.3535.