30, May 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

Yesterday, the Euro got the support from the consumer confidence and Eurozone retail sales index strong data.

However, the economy of the eurozone still struggles with the crisis. The latest statistics has been negative. U.S. Fed seriously considers closing the program of quantitative easing. The market situation support more the dollar than the euro. We think that EUR/USD will be traded in a channel 1.2760-1.3060 up to the labor market news in the U.S..

Now the price is above the Chinkou-span, the sell signal is canceled, we have a strong and confirmed buy signal. EURUSD broke the Ichimoku cloud through and is being traded above it. The pair is above the Kijun and Tenkan, the Ichimoku cloud is neutral.

Kijun-Sen and Tenkan-sen follow the price up.

Bollinger bands began to expand.
MACD is in positive area now. The indicator shows that the price is oversold.

Trading recommendations

The pair formed a new upstream channel, within which it is correcting to the level 1.3020. We believe that the pair will be in the uplink by the end of the next week, when the number of Nonfarm Payrolls and the level of unemployment will be published.

We recommend selling in the case of a reversal from the level 1.2995 with a take-profit at 1.2900.

Should the pair grow, the price will go to 1.3090.