FX.co ★ The EUR/USD technical analysis and trading recommendations. Weekly review.

Daily timeframe

Ishimoku:

The uprising movement continues. Presently, the buy signal with the target at 1.3580 is presented. The signal is confirmed as the price is above the Ishimoku cloud and the Chinkou Span is above the price curve. The target level has been already passed, the correction started, but the buy signal did not weaken. Currently, the interim target is the first resistance level of 1.3995. If the price closes above this level the next target for uprising movement will be the second resistance level of 1.4358. On the other hand, the correction movement may continue. In case the price fixates above the Kidjun-Sen (1.3740) the buy signal will weaken, so long positions should be closed. The price is between the Tenkan-Sen and Kidjun-Sen testifying about the upward tendency. The Tenkan-Sen is directed downwards, thus denoting the beginning of correction. The Kidjun-Sen is directed upside, thus indicating the uptrend in a long term. The uprising movement is confirmed by the fact that the Chinkou Span is above the graph. The Ishimoku cloud testifies the continuation of the upward tendency, since the cloud is expanding.

Bollinger Bands:
This indicator shows the probable end of the uptrend or correction. The lines are converging and directed upward, it can be connected with slight correction, however, as it was mentioned above, the signal did not weaken. In this case the continuation of the correction movement is more preferable.

MACD:
This indicator is directed downside, showing the correction motion. Nonetheless, the price does not move down. The further movement’s direction will be determined near the first resistance level.

Trading recommendations:
Currently, the correction movement is observed on the EUR/USD within the uptrend. In case the first resistance level of 1.3995 is passed it is recommended to trade up with the target at 1.4358. Stop loss is set below 1.3740. If the first resistance level is not broken through it is advisable not to trade because of uncertainty regarding the direction of the trend and probable correction.

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.