FX.co ★ EUR/USD technical analysis and trading recommendations for September 17, 2010

4-часовой таймфрейм

Overview:
as expected, buy signal is continuing with the aim at 1.3064. This signal is strong and confirmed as the price managed to fixate above the Ishimoku Cloud and the Chinkou Span strengthened above the price curve. Alongside, the price managed to fix above the second resistance level at 1.3019, which offers the next target of the movement at 1.3121 – the 3rd resistance level, which is not punctured by the price still. If this level is passed, the next target will be at 1.3250. if the rebound from this level occurs, a correctional movement can start. Thus, if the MACD reverses downwards, long positions should be curtailed. If the price fixates below the Kijun – Sen, this will denote the weakening of the current signal, and the point to reduce long positions. The Chinkou Span is above the price chart, which is a confirmation of the current buy signal. The Bollinger Bands show the uprising movement the lines are diverging and directed upside. The MACD is ascending thus demonstrating the current upturn.

Trading recommendations:
Currently, it is recommended to trade long with the target at 1.3121, and in case of the fixing above this mark the aim will be 1.3250. Stop loss is setup below 1.2900. If the MACD reverses downwards, long positions should be cut manually.

In addition to technical image one should take into account the fundamental data and the time of their release.

The chart annotation:
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.