23, May 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

Bernanke's speech in Congress did not have very positive remarks for the dollar. The pair used a low liquidity moment before Bernanke's speech and tried to consolidate above 1.2960. But the pair quickly lost their strength approaching to the level and after Bernanke's speech the pair fell to 1.2840.

The price is trading lower than Chinkou-span, we have a strong sell signal. EURUSD is trading below the Ichimoku cloud. The pair is under the Kijun and Tenkan, the Ichimoku cloud has a down trend formation.

Bollinger bands are turning down following the price. The turn confirms the return to the downward movement.
MACD is now at zero line. Should the indicator turn down it will signal the resumption of the falling.

Trading recommendations

While the pair is trading above the 1.2900/1.2880 levels we can expect new attempts for growing, but we do not see a strong potential for the growth. The growth will be possible if the EURUSD consolidates above the last level of resistance.

Should the pair continue to go down it will set its way to the level 1.2800 at first, after consolidation it will go to 1.2760.