27, January 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

European currency continued to stay at one place in the absence of important economic and political news and closed the last week with small losses versus the dollar. The results of the current account balance in Italy, Spain and Portugal did not affect the market.

The pair continues to consolidate below the range 1.3550-1.3650, and which will now act as a resistance. The pair still is aimed to around 1.3400.

We have a northern movement. The buy signal is confirmed and strong. The price is being traded above the cloud and below the Chinkou Span.

The upward movement will be until the Kijun-Sen is below the price. Kijun-Sen and Tenkan-Sen are directed upwards.

Bollinger Bands is broadening.
MACD is in a positive area, the histogram is growing.

Trading recommendations

There was a downward trend line 1.3563 and three resistance levels: 1.3574, 1.3647 and 1.3676 break. All breakthroughs happened at high volume. The price is fixed above 1.3676 which is a good signal for the continuation of a northern movement.