Overview:
We can see that the euro is still observing the buy signal, correction movement has not started yet, which allows us to trade up. The formed sell signal is strong and confirmed, since the Chinkou Span fixated above the price graph and the price is above the Ichimoku cloud. Thus, the first target for the upside movement is 1.4315 – the first resistance level, reached already. If this level is passed the second target will be the second resistance level at 1.4395. Upside movement remains while the price is above the Kijun-sen (1.4205), if the price fixates below this line it is recommended to cut long positions. The Chinkou Span is above the price graph, which confirms the current buy signal and indicates bullish sentiment. The Bollinger bands show upside movement, the lines are diverging and directed up. The MACD is ascending, thus indicating current upside movement, if it reverses down, long positions should be cut as this will denote the beginning of a correction movement.
Trading recommendations:
Currently it is recommended to trade up with target at 1.4315 and further to 1.4395. Stop Loss should be placed below 1.4205. If the MACD reverses down, it is recommended to cut long positions.
In addition to technical image, one should take into account the fundamental data and the time of their release.
The chart annotation:
Ichimoku 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 white bars in the indicators window.
http://instaforex.com/forex_analysis/26339/=OUE
.gif)
