29, November 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

U.S. dollar continued the trend of the previous days – it grew versus the yen and the commodity currencies and it fell versus the pound and the euro amid the conflicting statistics. Unemployment Claims, Chicago PMI and U.S. Consumer Confidence were better than everyone expected - while the national activity index of Chicago Fed and Durable Goods Orders came out worse than traders thought.

The pair is not stable yet above the resistance 1.3560-1.3600 level, where the 50-day SMA takes place. However, the probability of this is still high, and in case of success, the road to high growth 1.3830 and further to around 1.4000 will be opened.

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

Volumes in ascending growth continue to point on easing purchasing power. A failed retest of level 1.3600 is a further sign of impending rebound to the support level 1.3550.

The break of support level 1.3550 down will be a good signal to trend line 1.3470 rising.