28, August 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

According to HSBC experts the European currency steadily strengthened its positions showing signs of stabilization of the European economy. Improved index EconomicSurprise for the region was very sharp.

The spread between two-year Spanish government bonds and German Bunds, decreased to a minimum value over the last two years. Over the past eight weeks, shares of European banks increased by fourteen percent, demonstrating that at this stage of the weakness of the financial sector is not a big problem.

The pair failed to close above the 1.3400 level.

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

The pair is currently trading near 1.3360, which serves as a support level. Should it break this level the EUR/USD may fall to the level 1.3320.