28, May 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

Last week the Euro was moving in different directions. We believe that there should be new adjustments this week.

We expect weak news this week which only confirm a bad state of the euro zone. Problems in Slovenia or even in Germany will increase pressure on the euro.

The price is trading upper than Chinkou-span, we have a weak buy signal as EURUSD is trading in the Ichimoku cloud. The pair is between the Kijun and Tenkan, the Ichimoku cloud has a down trend formation.

Kijun-Sen and Tenkan-sen formed a "dead cross". Kijun-sen is moving horizontally and the Tenkan-Sen is directed down.

Bollinger bands indicator has formed an upward channel.

MACD returned to the growth it is in a positive area now.

Trading recommendations

We recommend staying out of the market, buying from the current levels. The fact that the price is in the cloud indicates the uncertain mood of the market.