29, April 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro grew up to 1.3081 at the end of the last week, after the member of the European Central Bank Joerg Asmussen said that the impact after the interest rate reduction will be minimal.

The President of the Central Bank may take a tough position about the monetary policy and the Board of Governors would have to perform easing program cycle for the current year as the euro zone struggles to recover.

The pair is being traded in a narrow channel between the Bollinger bands. We believe that the pair will not move significantly before the ECB's decision on interest rates.

The price is below the Tenkan-Sen and Kijun-Sen. The Tenkan-Sen and the Kijun-Sen are directed sideways. The Cloud is neutral.

Bollinger lines are narrowing and going down.
MACD histogram is parallel the zero line.

Trading recommendations

The sell signal is confirmed but weak as the Chinkou Span is below the price and the price is in a lateral channel. The indicators and graphical analysis suggest the falling. The pair will be in the short term either in a flat or will continue to move downward.

It is recommended to go short. The first target of the downward movement is the level 1.2940.