29, January 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The Euro held an auction Monday versus the dollar within a narrow range and closed almost at the opening price. The positive data from the IFO in Germany did not produce an impression on the market, although they were better than it had been expected.

The pair continues to trade above the range 1.3550–1.3660, in connection with that the risks are still shifted towards the growth to the resistance 1.3830, overcoming of which will open the way to the testing the level 1.4000.

We have a northern movement. The buy signal is confirmed and strong. The price is being traded above the cloud and below the Chinkou Span.

The upward movement will be until the Kijun-Sen is below the price. Kijun-Sen is horizontal and Tenkan-Sen is directed downwards.

Bollinger Bands is narrowing.
MACD is in a positive area, the histogram is descending.

Trading recommendations

The rapid growth of Euro is temporarily stopped at the level 1.3700. The price went up to the level on the high volume, having formed a «flag». It is likely that from 1.3690 a short-term bounce down to the level 1.3645 will follow. A breakthrough if the level 1.3710 upward will mean a growth continuation with the aim – 1.3805.