23, August 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The U.S. Federal Reserve has not decided the time it will minimize the program. As it was said the U.S. economy still needed a support. Almost all of the 12 members of the committee agreed that the time for change enabling policy has not yet come.

The growth of EUR/USD stalled near the 1.3350 key resistance, and again shifted focus our overall bearish trend in the coming months.

EUR/USD has been fluctuated widely emphasizing the strengthening of the dollar and the belief that "narrowing" will not be delayed. After the release of the FOMC protocol, traders pushed the EUR/USD to new lows. Until now, the pair is trading near the lows of the medium. Rebound from the resistance 1.3440 is potentially one of the major signs of bearish pivot points for EUR/USD.

According to the Ichimoku indicator, the pair is a medium upward trend now. Tenkan-Sen and Kijun-sen are horizontal. Tenkan-sen is below the price. The Cloud is growing.

Bollinger bands are widen and directed aside.
The MACD histogram is still located in the positive zone, giving a signal for correction.

Trading recommendations

It seems that the pair cannot overcome the level 1.3400 and yesterday's USD strengthening against all pairs confirms that falling may continue today.
There is the support level 1.3310 on the downtrend way of the pair which the price reached with increased volumes, the chances it will be broken are high. In this case, the pair will go to 1.3260, forming the base of a rising channel.