EUR/USD: analysis and review for October 18, 2013
18 October, 2013
Current trend
This Thursday the pair EUR/USD has strengthening considerably and today it has reached nine-month highs at 1.3692. Investors are disappointed, that the solution of US budget crisis is temporary. The raise of national debt limit allows American government to work until January 2014 and then the crisis may burst again. Moreover, experts assure that FRS won’t cut QE program while economic state is unstable. The rise of the pair was also supported by positive fundamental data from China. Its GDP index has risen up to the 7.8%, the highest level this year.
Support and resistance
According to the technical indicators, the pair is moving towards key level of 1.3710. If this level is broken through, Euro will go up to the level of 1.3780. Otherwise we expect a correction to the levels of 1.3620 and 1.3575 (middle MA of Bollinger Bands indicator). Bollinger bands show a divergence, confirming the upward trend. MACD histogram is in overbought zone, its volumes are increasing. Stochastic lines are also in overbought zone, but they have crossed and going to turn down.
Trading tips
Regarding the situation it is recommended to open long trades with targets around 1.3710. Short positions can be placed after the breakdown of the 1.3650 level.
Dmitry Zolotov
LiteForex analyst
Source link
Related materials
Since December 2015 the index S&P500 has been in the downtrend. In February, the index fell to the level of 2108.0, which is almost 15%. In the past 4 sessions the index had adjusted, approaching the level of 1935.0...
On the 4-hour chart, the price is testing the level of 1210.80 (23.6% correction); the ascending 38.2% fan line is an additional resistance for the price. If this resistance area is overcome, a growth would continue to 1224.90 and 1249.25...
Yesterday, the price of silver fell to last Thursday’s opening levels, when a new local low since the end of October 2015 was reached. Prices of commodity assets are falling as risk appetite is gradually returning to the market...
Yesterday the pair showed choppy trade and closed at its opening level. The price was pressured by growth in the European stock markets and Fed Chair Janet Yellen testimony before the US Congress...
The Company ranks 23th on capitalization in the finance sector among the Issuers, trading in the American stock market. On 22 January the company reported for Q4 of the fiscal year of 2015. The company has been demonstrating negative dynamics for the last few quarters...
Since the opening of the trading day the price of crude oil Brent is declining. On the hourly chart the price has broken down the first support level of 34.35 (ÅÌÀ50), which is ÅÌÀ200 on the four-hour chart...
The price of gold has returned to the level of 1190.00 USD per troy ounce, (which is had at the beginning of November), regaining half of the losses since mid-October 2015. On the daily chart the price has broken down strong resistance levels 1129.00 (ÅÌÀ200)...
Amid sharp decline in the global stock indices since the beginning of the year European index EUROSTOXX50 has lost about 14%. During the final surge of decline from 3515.0 to 2840.0 last December, the price has managed to go above the level of 23.6% Fibonacci...
On the daily chart the price has broken down the upper line of the downward channel at the level of 35.50. Although, on the daily chart the indicators OsMA and Stochastic recommend long positions; on the four-hour chart the indicators give signals in favor of the sell positions...
Forex Currencies Forecasts
Top Brokers offering Forecasts
| # | Broker | Review | |
|---|---|---|---|
| 1 |  | Easy Markets | 88% |
| 2 |  | FXTM | 86% |
| 3 |  | FxPro | 83% |
| 4 |  | FIBO Group | 81% |
| 5 |  | HYCM | 74% |
| 6 |  | FXCM | 72% |
| 7 |  | HotForex | 70% |
| 8 |  | Fort Financial Services | 69% |
| 9 |  | FBS | 67% |
| 10 |  | Exness | 66% |
