FX.co ★ Technical analysis and trading recommendations on EUR/USD. Weekly review

Daily time frame

Ishimoku:

On the daily time frame the euro maintains uptrend and is testing Golden Cross, but now the growth slowed down (if we compare it with the beginning of uptrend). The current signal for opening long position that was proved by Chinkou Span is above the price chart. Besides, it is rather strong considering the fact that the price is above the Ichimoku cloud. The first target of the uptrend is the first resistance level of 1.3512. In case the price passes the first target, the second resistance level of 1.3722 will act as a next target for the uptrend. The uptrend will maintain until the price is above Kijun-Sen (1.3265). If the price fixes below this critical line, so the downtrend may continue with the target of pivot point of 1.3133. Then, the signal to buy may loosen and disappear, and the long positions will not be relevant anymore. The price is situated above the Tenkan-Sen and Kijun-Sen levels that show the current uptrend. Tenkan-Sen, which is directed up, indicates that the uptrend will maintain in the short term. Kijun-Sen, which is directed up as well, proves that the uptrend will continue in the medium term also. Chinkou Span is higher than the price chart that proves the current signal to buy and indicates the bullish sentiment among traders. Ichimoku cloud confirm the uptrend, it is pointing up and extending. That shows that the upward momentum is strengthening. The rebound from the resistance level of 1.3512 may provoke real correction.

Bollinger Bands:

This indicator shows that the uptrend continues. The Bollinger Bands are narrowing and pointing up, so the long positions are relevant now.

MACD:

This indicator goes up showing the uptrend and signals to buy. In case the indicator reverses downwardly, it may signal about the beginning of a downward correction.

Trading recommendations:

The EUR/USD currency pair continues uptrend. The level of 1.3512 acts as the first target for long position. If the price fixes above this target, the orders to buy may be executed with a target of 1.3722. It is recommended to set the stop loss below the level of 1.3265. In case the Kijun-Sen goes up, you should set the stop loss level higher too. After the price passes 100-150 points towards right direction, you would better to move the stop loss to the break-even point. If the MACD reverses downwardly or the price rebounds from the level of 1.3512, you may close the long orders manually. While trading long, take profit orders may be set a little lower than the target levels of 1.3490 and 1.3700.

Explanations of graphics:

Ichimoku indicator’s lines:

Tenkan-Sen - the red one.

Kijun-Sen – the blue one.

Senkou Span A – the light brown dotted one.

Senkou Span B – the light purple dotted one.

Chinkou Span – the green one.

Индикатор Боллинджер Бандс:

3 yellow lines.

MACD indicator:

The red line and histogram with white bars in the indicators’ window.