25, March 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The EU, ECB and IMF agreed to rescue Cyprus. As we know Cyprus rejected a law of tax imposition at first. Over the past week the government was unable to find a way out of this situation. Parliament had to agree to the conditions of lenders to adopt the amended version of the document.

The pair grows against the good news.

The pair is in the Ichimoku cloud. The Chinkou Span and Kijun-sen are below the price chart. The pair is being traded in the Cloud.

We have a weak buy signal which is almost canceled.

The pair is growing but can return below the cloud any moment. The first goal of the southern movement is the level 1.3000. If the price is fixed at this level, the downward movement may continue to the level 1.2940.

Bollinger bands are turned in different directions. Price range is broadening.

MACD started to grow.

Trading recommendations

The fact that Cyprus took the eurozone conditions is good news for the euro. Risky assets have a good chance to grow with the beginning of the week, but this growth, if it happens will be a short-lived.

In the case of the growth, the pair will move towards 1.3055. Entrenched in it the growth will continue to 1.3155.

The pair is being traded above the Kijun-sen. We recommend going long. If the pair returns to a downward movement the first target will be 1.3000 and the second is 1.2940.

When you open orders you need to consider the fundamental analysis as well.