30, August 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

EUR/USD bottomed out on Wednesday just before the data on home sales in the United States was published. Many currencies fell sharply against the Syrian turmoil (eg , AUD/USD and AUD/JPY), but a growing crowd of bulls kept EUR/USD from the same fate. The weak housing data in the U.S. may also have contributed to the strength of EUR/USD on Thursday.

According to the indicator Ichimoku pair is located in the medium uptrend on the daily chart. On the 4H chart , we decline. The pair broke the Ichimoku cloud came down on a couple of levels down . Tenkan -Sen and Kijun -Sen are directed downwards. Tenkan -sen is below the price. The cloud is neutral.

1.3409 remains a key resistance for the up correction to a macro- basis, 1.3352 is a immediate resistance for the EUR/USD.

Bollinger bands are widen and directed down narrowing.
The MACD histogram is located in a negative area.

Trading recommendations

To break the ascending channel the price needs to punch and to be fixed below the line of support 1.3285. Should the price pass this level it will open the was to the support 1.3240. Break of this mark down will allow selling shortly with targets – 1.3200 and 1.3190.