FX.co ★ Technical analysis and trading recommendations for the EUR/USD currency pair for February 5

4-hour timeframe

The overall picture:

The sideways movement was brief and the downward trend took place again. Sale signal with the target level at 1.3411 formed. The price also strengthened below the major support level of 1.3746. This means that the current price target is 1.3635 and further 1.3413. Therefore, it is recommended to bear with these targets. Ishimoku indicator is widening again, Senkou Span A is lowering that signals about the descendant trend continuation. If the price fixates above Kijun-sen, sale signal will weaken and short positions should be closed. Bollinger Bands are pointing out the descendant movement – Bands are down-directed and widening. MACD is moving down that witness about the downward trend.

Trading recommendations:

For now, it is recommended to bear with targets at 1.3635 and 1.3413. Stop loss to set above Kijun-sen (1.3840).

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 trading,

Stanislav Polyanskiy

February 05, 2010