EUR/USD (a 4-hour chart)
The trading week started with a small gap up, after which the pair moved in a side correction after which it resumed the growth.
Due to the high demand on the European currency the pair EUR/USD could grow to 1.3100.
The buy signal is confirmed and weak as the price is below (inside) the Ichimoku cloud. The first goal of the upward movement is 1.3090, if the price consolidates at this level, the upward movement will continue to 1.3150.
The Euro is being traded in a narrow ascending channel between the Bollinger bands.
The price is above the Tenkan-Sen and Kijun-Sen. The Tenkan-Sen is above the Kijun-Sen. The Tenkan-Sen is directed upwards, the Kijun-Sen is directed sideways. The Cloud is neutral.
Bollinger bands are narrowing and directed upwards.
MACD is in the positive zone, above the signal line, indicating that the upward correction will continue.
The European currency is slightly strengthened against the U.S. dollar, however, it is likely that the negative eurozone economic statistics will return the pair back to 1.3000.
In the future, the pair EUR/USD may continue to decline to the level 1.2950 (1.2850). The rumors of ECB interest rate reduction may also pressure the pair.
Investors expect the rate cut at the next meeting of the Central Bank. Expected levels are 1.3000, 1.2850
If the pair leaves the border of Ichimoku cloud, the northern movement continues to the level 1.3150.
In case of return to the Cloud, the pair will be traded in a narrow range between 1.3090 and 1.3000.