30, January 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

Forex analysis for the euro shows that the price resumed the upward movement yesterday, at least made the jump up. A current buy signal is confirmed and strong as Chinkou Span entrenched above the price chart and the price is above Ichimoku cloud.

At the moment our target is the first resistance level 1.3537. After overcoming it the upward movement can be resumed with the second resistance level 1.3615 as a goal.

The upward movement is maintained as long as the price is above the Kijun-sen (1.3390), fixing prices below the critical line would weaken the current signal to buy and question the further upward movement, and the price will start moving to the Ichimoku cloud. Chinkou Span is above the price chart that confirms the current signal and the bullish mood of traders.

Bollinger Bands show continued upward trend, its lanes are narrowed and slightly upwards, so it is recommended to consider long positions in the market.

MACD turned up, indicating that the current uptrend. If the indicator turns down that will be signal of a possible resumption of the corrective movement. If the price rebounds from 1.3537 level that fact can also trigger the onset of new correction.

Trading recommendations

We recommend opening positions with the first target 1.3537. Long positions will be relevant with the target 1.3615 when the price overcomes this line. Stop Loss should be placed below Kijun-Sen and 1.3390.

Reaching profits of 50 - 60 points stop loss can be moved to breakeven zone. You can close orders manually if MACD turns down or the price bounces from 1.3537.

Take Profit can be placed slightly below target levels – 1.3530 and 1.3605.