23, December 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The pair continues to gradually fall and it is expected to test the support 1.3490-1.3525. This level overcoming shall confirm the decrease.

In the future if the pair stays above 1.3490-1.3525 the growth is likely to resume to overcome the resistance 1.3830 and then to test the level 1.4000. However, if the support 1.3490-1.3525 is passed, the falling will be continued to 1.3300-1.3330.

The current sell signal is strong and confirmed as Chinkou Span is below the price and the price is below the Ichimoku cloud.

Falling will be continued till the Kijun-Sen is located above the price. The trend lines cross each other, the Tenkan Sen is directed downwards, Kijun Sen is horizontal.

Bollinger Bands show a continuation of the downward movement, the bands widen and directed down.

MACD histogram is still located in the negative zone and it is lower its signal line.

Trading recommendations

We should expect consolidation education at the support level 1.3620-1.3630.

Given the fact that the uptrend is broken the main direction is to the "South" now. But to confidently sell we need to wait for a break and consolidation below the support level 1.3620. That will open the way to 1.3520.