31, January 2014

EUR/USD (a 4-hour chart)

 EUR/USD (a 4-hour chart)

General Overview

The pair is trading just below 1.3700 after testing on Friday 1.3740 (the nearest resistance). Above the resistance is at 1.3820 (maximums of December 30). The nearest support is at 1.3650 (recent minimums), 1.3620 (Thursday hourly minimums). Below 1.3500 losses could grow to 1.3400 (minimums of November 21).

The direction is changed. We have a southern movement now. The sell signal is confirmed and strong. The price is being traded below the cloud and above the Chinkou Span.

The upward movement will be until the Kijun-Sen is below the price. Kijun-Sen is horizontal and Tenkan-Sen is directed downwards.

Bollinger Bands is broadening being directed down.
MACD is in a negative area, the histogram is descending.

Trading recommendations

We expect a consolidation at 1.3540, a bounce up is possible still we stand for falling continuation. There are two targets: 1.3485 and 1.3420.