27, June 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

Analysis of the Forex market for June 27 shows that the correction is over and the price resumed the downward trend. The current sell signal is strong and confirmed as Chinkou span is below the price and the price is below the Ichimoku cloud. The first target of the downward movement is the support level 1.3000.

If the price breaks this target the downward movement may proceed to the next support level 1.2900. The downward movement is maintained as long as the price is below the Kijun-Sen.

Chinkou Span is below the price that is a confirmation of the current sell signal.

Bollinger Bands show a continuation of the downward movement.
MACD is in a negative area, indicating the current correction movement.

Trading Recommendations

The break of 1.3000 could target the bears on 1.2900. But we will see if this happens as the level 1.3000 is a strong psychological level, it is unlikely to give up at the first time.

It is most likely that the pair will be bought at this level. In addition, the technical indicators give mixed signals. We recommend to be attentive now and not to hurry to sell now. The mark 1.30 will define the trend in the last couple of months.