25, June 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

On Wednesday, Ben Bernanke hinted concerning that the Central Bank may start folding program of monetary stimulus later this year, the news helped the dollar to continue growing and on Friday.

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, Kijun-Sen is horizontal.

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

Trading Recommendations

The pair formed a bearish absorption candle on the weekly chart. Its formation suggests that the market is currently ruled by the sellers. Note that sellers need only three days to cancel out 10 days of growth.

After re-testing the resistance 1.3182 the probability of joining a newly emergent downward trend has increased. It is better to sell on a pullback to the level 1.3182 and a breakout of 1.3090 and 1.2975. This week's bearish trend will be canceled out in the case of return above the 1.3250 level.