24, June 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

NYSE saw one of the biggest falls in the value of assets and indices over the last year on Friday. Investors had fears that the U.S. Federal Reserve would start stimulation program shortening this year. No one knows when it will happen. The program of quantitative easing may be completed by mid-2014.

Because of these fears all the growth plans were canceled.

The price is below the Chinkou-span, we have a strong and confirmed sell signal. EUR/USD has left the Ichimoku cloud. If the pair consolidates below the cloud down that will cancel a buy signal. The pair is being traded below the Kijun-Sen and Tenkan-sen, the Ichimoku cloud is directed downwards.

Tenkan-Sen and Kijun-Sen follow the price down.

Bollinger bands are broadening, indicating a high market activity.
The MACD is falling, having entered in a negative zone.

Trading Recommendations

Euro still holds bids around the level 1.3150, but the bears do not cease to emphasize in an attempt to break through to the stops, which according to rumors are on the break 1.3140.

Meanwhile, some dealers see good bids in the area 1.3135/30. According to their reasoning to close buy orders will be possible only if the price goes below this level.

We can see offers around the levels 1.3160 and 1.3175. A strong interest in selling is evident in the 1.3190/1.3210 area now. It is likely that in the short term this will limit the recovery attempts.