29, January 2013

EUR/USD (4-hour chart)

EUR/USD (a 4-hour chart)

Important news for today

- 11:00 am EDT. German consumer confidence index calculated by market research company GfK (forecast for January - 5.7, the previous value - 5.6)
- 18:00 GMT. House price index CaseShiller in 20 major cities in the U.S. in November (forecast - 5.5% y / y, previous in October - 4.3% y / y)
- 19:00 GMT. U.S. consumer confidence index from the Conference Board in January (forecast - 64, the previous value - 65.1)

It is possible that today's news will not have a strong effect on the price and the pair will continue to flat tomorrow.

The analysis

The analysis of the Forex market shows that the price was at the stage side of the correction the whole Monday, so the technical picture is not significantly changed. The current buy signal is confirmed and strong as Chinkou Span entrenched above the price chart and the price is above the Ichimoku cloud.

At the moment the first resistance level (1.3537) is the target for an upward movement. After overcoming this point the upward movement can be resumed with the second resistance level (1.3615) as the target.

The upward movement will be on a horse as long as the price is above the Kijun-sen (1.3370), if the price fixes below the critical line that will weaken the current signal to buy and will question the further upward movement. In this case the price will be able to continue its movement to the Ichimoku cloud.

Chinkou Span is above the price chart confirming the current buy signal and the bullish mood of traders.

Bollinger Bands show continued upward movement, the bands widen and upwards. Now it is recommended to consider long positions in the market.

MACD is turned down, indicating the current corrective movement. If the indicator turns up that may be a signal for a possible resumption. Bouncing of the price from the pivot level 1.3401 can also trigger the completion of the correction.

Trading recommendations

We recommend opening long positions with the first target 1.3537.When overcoming this target the price might go ahead to the next level – 1.3615.

Stop Loss is advisable to place below the Kijun-Sen (1.3370 ) and with the increase of the line we move the stop level up.

When you have profits 50 -60 points stop loss can be moved into the zone of breaking even.

New buying orders will be also possible in the case of MACD turns up or bounces from the level 1.3401. Take Profit can be placed slightly below target levels – 1.3530 and 1.3605.