27, September 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

EUR/USD is aimed to test 1.3568 (high of September) once again. Only a drop below 1.3372 (the level, punched on the Fed statement) suggests a bearish development. The resistance channel is around 1.3600 on top D1. It seems that the pair wants to go higher, but there are a lot of risks when buying at the top. The impulse is possible after some news publishing. Still the moving within the channel 1.3460 — 1.3585 seems to be most probable.

Kijun-Sen and Tenkan-sen lines maintain the upward crossing of the "golden cross". The line Kijun-Sen began to unfold horizontally while the Tenkan-sen line is rising. The market is experiencing "bullish parade of lines". The Cloud is growing.

Bollinger Bands shows a formation of a new bullish wave showing a small burst of activity in the market and changed its direction to upward. The trading takes place in the upper part of the channel, and the middle line, which is in the area of 1.3520, a dynamic support level. Despite the fact that the MACD indicator is moved to the buying area.

Trading recommendations

If the price breaks through the resistance of 1.3550 upwards there may be an active growth of the oblique resistance line 1.3640, in this case retest of 1.3700 is possible.