30, October 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

We should pay attention to GfK Consumer Confidence. Unemployment forecasts show a slowing of growth in the leading economy of the Eurozone. This growth can add some positive to consumer climate index. If we compare the retail sales dynamics of the USA and the Euro zone in the past two months - we will see growth in the euro area and falling in the USA.

The central event of the week is a meeting of the U.S. Federal Reserve that will be hold today. Today, the euro/dollar is expected to be traded in a range 1.3745-1.3830.

The bulls dominate on the market. The pair is in a bullish trend. Chinkou Span is above the price, and the price is fixed above the Ichimoku cloud, the buy signal is strong and confirmed. Tenkan-Sen and Kijun-sen are horizontal. The Cloud is growing.

The upward movement will remain until the Kijun-sen is located below the price.

Bollinger Bands indicator shows a lateral movement. The bands are narrowing, being directed upwards.
The MACD histogram is directed down.

Trading recommendations

We believe that we should not expect a breakout of sloping resistance line 1.3770 today.

The breakthrough of a sloping support line will be accompanied by the price falling to the support levels 1.3755, 1.3700, 1.3660.