27, November 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The U.S. dollar was sold with advance versus the major currencies on Monday contrasted with the fall of the yen against the dollar to nearly six-month minimum and with corrective decline of European currencies. The dollar ignored weak housing data because of meaningful statistics poor quantity on Monday. The pound fell against the weak data from the UK property market. The yen and the Swiss franc fell after reaching of an agreement with Iran on its nuclear program because of reduced demand for safe-haven currencies.

The support levels are 1.3487 - 1.3440, and resistance levels are 1.3580-1.3645.

The pair is growing. Chinkou Span is below the price, and the price is above the Ichimoku cloud. We have a strong buy signal. The pair is being corrected upwards. Tenkan-Sen and Kijun-sen are following the pair up, Kijun-sen is horizontal and Tenkan-Sen is going upwards. The Cloud is growing.

The pair left the cloud. The upward movement remains as long as the Kijun-sen is located below the price.

Bollinger bands are directed upwards. The MACD histogram is shifted into the overbought zone, its histogram is growing.

Trading recommendations

Over a little more than three weeks, the price has been trading in a sideways range, constantly fighting off the resistance level 1.3550 down. Another approach to this level is more likely to be accompanied by a rebound down to support level 1.3470 or to testing trend line 1.3440.