EUR/USD: general analysis for October 14, 2013

October 14, 2013

Current trend

The problem of the US budget is still unresolved; and the time is fast drawing near technical default. I would remind that Treasury Secretary Jacob Lew has announced that on 17 October the country can become a bankrupt. Today is the bank holiday in America, so the news that may cause the change in   the rate of the currency is the publication of the data on industrial output in Germany. Analysts expect that the monthly rise in the index will amount to 0.8%; however, the annual value is likely to reduce by 2.1%.

Technical analysis show that on the four-hour chart there is a downward channel, the price is trading near its upper limit. MACD indicator demonstrates “bearish” divergence, suggesting that it is time to think about selling.

Support and resistance

Growth in the pair is prevented by the upper limit of the channel and the local lows of the price at 1.3581, which is near the upper moving average of the “Bollinger bands” indicator. The first support level is at 1.3535. Breakdown of this level will open the way to the lower limit if the channel at 1.3487.

Trading tips

It is recommended to open short positions with the target of 1.3487. Stop-loss can be placed at the level of 1.3581.

Kamil Avad

Analyst of LiteForex Group of Companies

Publication source
LiteForex information  LiteForex reviews

February 17, 2017
Golds rally may falter
The gold price has racked up its 2nd straight day of gains today on the back of US dollar weakness and doubts over an interest rate hike next month from the US Federal Reserve...
February 16, 2017
Where is black gold heading?
The Euro is slowly going down and this is not brought on by the Eurozone situation. Instead, this is fueled by the U.S. Dollar. Yesterday, Janet Yellen gave a speech in the Senate Banking Committee emphasising the fact that it Is not quite right to use the wait-and-see stance regarding the interest rate hike...
February 14, 2017
Will France exit the euro?
The Euro has come under pressure late in the European session today, after analysts warned of the huge costs that France would face should they decide to ditch the European currency...

NPBFX Rating
Orbex Rating
 FXTM Rating
Tickmill Rating
XM Rating
Larson&Holz IT Ltd Rating

TropicalTrade Rating
OptionBit Rating
TopOption Rating
GTOptions Rating
IQ Option Rating
OptionFair Rating