25, July 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The European currency has been trying a few weeks to reclaim its position and, taking into account the weak data from the United States, the pair was finally able to break through short-term resistance at 1.3207.

Weak U.S. data gave the pair a short-term impulse. Although the pair is overbought, but a weak housing price index, and the index of manufacturing activity in the United States Federal Reserve Bank of Richmond, which was weaker than expected, the impact of the fact that the pair EUR/USD has moved through the resistance level of 1.3207.

The price is in an upward trend. The pair has worked out a critical line Tenkan-Sen and rebounded from it, completing the turn of the corrective movement. The current buy signal is strong and confirmed as Chinkou span is below the price and the price is above the Ichimoku cloud. The upward movement is targeted to the resistance level 1.3300.

The upward movement is continued as long as the price is above the Kijun-Sen.

Chinkou Span is below the price that is a confirmation of the current buy signal. The Kijun-Sen and Tenkan-Sen are directed upwards. The Cloud is growing.

Bollinger Bands indicator shows an upward movement. The bands are narrowed.
MACD is in a positive area, indicating the current upward movement.

Trading Recommendations

Strengthening of the euro this week, creates the conditions for further growth to the area 1.3255-64 and 1.3376 level in a broader perspective. The month high 1.3239 reached on Tuesday remains within reach. The support at 1.3175 and 1.3155 limits the scope for corrective decline and protects the strong support at 1.3135.