24, October 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The euro has been risen to its strongest level against the U.S. dollar since November 2011. Weaker-than-expected employment data in the U.S. sent the currency to float against all opponents. There has not been any important economic data published, but the fundamentals represent the redistribution of currency flows.

The ECB is not in a position to cut a monetary policy, but a lot of data from the euro zone will be released this week, and depending on what they will be like, the growth forecast for the euro area may also change in the positive dynamics of data, the euro could go even higher.

EUR / USD broke the previous high 1.3788. The pair is aimed at 1.3800 (psychological level) and 1.3808 (high of Nov.14 2011).

The bulls continue to dominate against the bears. The pair is in a bullish trend. Chinkou Span is above the price, and the price is fixed inside the Ichimoku cloud, the buy signal is strong and confirmed.

The upward movement will remain until the Kijun-sen is located below the price.

Trading recommendations

We expect a correction after yesterday’s growth. The correction is likely to go to a rising trend line 1.3740. We believe the price to bounce and will continue growing. The level of resistance 1.3800 is the nearest target, its breakthrough opens the way up to 1.3850.