27, February 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The pair continues to trade in a narrow range. The probability of a continued growth towards the resistance 1.3830 remains high. The nearest support is 1.3625-1.3650.

Meanwhile the pair is in the Cloud with strong intentions to break it. The volumes are high that gives us an idea that the falling may be continued.

There is a weak northern movement that is almost canceled. The price is in the Cloud and above the Chinkou Span. The downward movement will be until the Kijun-Sen is below the price. The Tenkan-Sen and Kijun-Sen are horizontal.

Bollinger Bands is directed aside. MACD is in a negative area, the histogram is descending.

Trading recommendations

The price is trading at 1.3670 for a long time. Such consolidation usually is followed by the reversal patterns. In this case are three vertices. In the long term downward movement should be considered two targets 1.3700, 1.3630.