23, July 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The euro had a slight change in the ECB's lending criteria, but many traders did not attach any importance to this. The growth of the dollar was limited by expectations for the fact that the U.S. Federal Reserve at the end of the year may narrow down its monetary stimulus.

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 just been reached.

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 aims to continue growing, but it is still necessary to overcome the upper limit of the range - 1.3200 resistance. In this case, the growth to the next resistance 1.3415 will be confirmed. Should the pair overcome it that will open the way to further growth to a maximum 1.3710.

At the same time, on a break and consolidation below 1.3000, which is the lower limit of the range, will be confirmed a downtrend for the strong support in the area of 1.2745, in its turn, the overcoming of which will test the key support 1.2660.

Meanwhile, as the pair is being traded in the range of 1.3000-1.3200, risks remain neutral, and it is possible that the consolidation will be continued for some time.