25, February 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The pair continues to consolidate in a range, which increases the possibility of a continued growth to 1.3830 and in case of overcoming and consolidation above this level the mark 1.4000 will be tested. The nearest support is area 1.3625-1.3650.

A trend reversal upwards is possible from the area 1.3465-1.3475, while overcoming this support will open the way to the support level 1.3295 or 1.3100.

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 euro is not going to follow the British pound downwards. The strong support level 1.3700 kept bears and corrected the price to the resistance 1.3765.

Still daily resistance level 1.3800 is not worked out. Due to the fact that the underlying trend remains bullish, the 38th figure retest is possible this week.