FX.co ★ The EUR/USD technical analysis and trading recommendations for November 1, 2010

4-hour timeframe

Overview:
New buy signal with the target at 1.4188 has formed. The Bollinger bands are diverging and directed upward, thus indicating the beginning of new uprising movement. The signal is strong and confirmed, as the price is above the Ishimoku cloud, and the Chinkou Span is above the price curve. In this case, the first target for the upward motion is the first resistance level of 1.4105. In case the price fixates above this level, the nest target will be 1.4188. If the price does not strengthen above this level, the correction will start. The critical level for the current uptrend is the mark of 1.3870 (Kidjun-Sen), below this level the buy signal will weaken. The Chinkou Span is above the price curve, thus confirming the current buy signal. The Bollinger Bands show the beginning of uptrend, the lines are diverging and directed upward. The MACD is ascending, testifying the current uprising motion.

Trading recommendations:
Currently, it is recommended to trade up with the target at 1.4105. The stop loss is set below 1.3870.

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.