27, August 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

Forex volatility is low in the last trading week of August. It is also clear that the markets are on the eve of a busy month of September. The euro remains strong and investors prefer to look at the positive data from Germany. Emerging Markets Bond also indirectly supports the euro.

According to the Ichimoku indicator, the pair is a medium upward trend now. Tenkan-Sen is directed up and Kijun-sen is horizontal. Tenkan-sen is below the price. The Cloud is growing.

Bollinger bands are widen and directed up narrowing.
The MACD histogram is located in the positive area near the zero line.

Trading recommendations

At the 4-hour chart, the formation of a new trend line is drawn at a sharp angle that can serve as a break of the resistance level 1.3400. But before that we expect a consolidation. Should the pair break 1.3400 it will go to resistance levels: 1.3440, 1.3480, 1.3500.