FX.co ★ Technical analysis and trading recommendations for the EUR/USD currency pair for December 30

4-hour timeframe

The overall picture:
The price could not strengthen inside Ishimoku indicator for a long time and decreased below it and Kijun-sen, which significantly weakened purchase signal. The purchase signal with goal at 1.4525 may not work out to target level. To continue this signal working out it is necessary to wait for the price fixation within Ishimoku indicator. Chinkou Span is above the price graph that enhanced the current signal. Ishimoku indicator is narrowing that showing the upward movement too. Sales are not actual now for this reason it is recommended to consider long positions. On the other hand, the present signal is abated therefore purchase is not recommended now. Bollinger Bands are up-directed that signals about the downward movement ending and at the moment we are watching the upward movement beginning. MACD is drawing near zero mark in the ascendant trend.

Trading recommendations:
Now is recommended to wait for the situation clearing or sale signal shaping or purchase signal gaining. In case of the price strengthening inside Ishimoku indicator, target will be at 1.4523. Bollinger Band indicator will become the main factor in the nearest outlook and it must be in trend movement while trading. In case of sale signal forming, we also get the level of 1.4180 in prospect.

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.

Have fortunate trades,
Stanislav Polyanskiy
December 30, 2009