Technical analysis and trading recommendations for the EUR/USD currency pair for January 19, 2010

4-hour timeframe

The overall picture:

The downward movement is working out further with the target at 1.4289. The price stood below pivot-level and Ishimoku indicator that strengthened the current sale signal. Therefore, the target level of 1.4289 is open. In case of the price fixation below the major support level, the open target level will be 1.4192. Chinkou Span is placed lower than the price chart that is also support the downward movement. Ishimoku indicator is narrowing, Senkou Span A is moving down that also signals about short positions. If the price stands above Kijun-sen, this will be a signal to close short positions, as the sale signal will weaken. Bollinger Bands are showing the downward trend, the lines are widening and down-directed. MACD is also edging down that witness about the downtrend.

Trading recommendations:

Now, the price target is the support level of 1.4289, therefore speculation for the fall with this target is recommended. Stop loss is to place above Kijun-sen, i.e. higher than 1.4455. If the price strengthens below the major support level, the further downfall to 1.4192 is possible.

The picture clarification:

Ishimoku indicator:
Tenkan-sen — red line
Kijun-sen — blue line
Senkou Span A — light brown stipple line
Senkou Span B — light purple stipple line
Chinkou Span — green line
Bollinger Bands indicator:
3 yellow lines
MACD indicator:
The red line and the histogram with the white bars in the indicators window.

Good luck in trading,
Stanislav Polyanskiy
January 19, 2010