30, December 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

A short-term outlook still looks negative; the pair is expected t fall to the support at about 1.3490–1.3530.
In the future if the pair stays above the support 1.3490–1.3530, a growth is likely to recommence in order to overcome the resistance 1.3830 and then to test the level 1.4000.

The current sell signal is weak and confirmed as Chinkou Span is below the price and the price is close to the Ichimoku cloud.

Falling will be continued until the Kijun-Sen is located above the price. The trend lines cross each other, the Tenkan Sen is directed downwards, Kijun Sen is horizontal.

Bollinger Bands shows a continuation of the upward movement, the bands are directed upwards.
MACD histogram is located in a negative zone and it is above its signal line.

Trading recommendations

We expect another retest of the support level 1.3705. If the price is not able to break above 1.3713 again, there will be a good rebound to the support level 1.3624, retest 1.3605.