24, February 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

Euro zone PMI indices, published late last week, indicated that the recovery in the region is moving too slowly, that provoked the pressure on the single currency.

The pair continued a correction, still its prospects remain positive, and a growth is expected to the resistance 1.3800. Should the pair overcome 1.3800 and consolidate above it the mark 1.4000 might be tested. The nearest support is at 1.3625-1.3650.

There is a strong northern movement. The buy signal is confirmed and strong. The price is above the Cloud and below the Chinkou Span. The upward movement will be until the Kijun-Sen is below the price. The Tenkan-Sen and Kijun-Sen are horizontal.

Bollinger Bands is broadening being directed upward. MACD is in a positive area, the histogram is descending.

Trading recommendations

The first retest of the support level 1.3700 was not broken. Still we expect another level retest. Should it be successful the way to a rising trend line 1.3650 will be opened for sellers.