FX.co ★ Technical analysis of EUR/USD

Day timeframe

Ishimoku:
According to the technical interpretation, the trend fluctuations and possible descending movement start are obvious. The price stood below Tenkan-sen and Kijun-sen. Tenkan-sen turned out and now is down-directed which calls into question the further prospects of an upward trend. The price rate managed to stay below Kijun-sen. Kijun-sen is still up-directed signaling that the ascending motion may recover. In near term Tenkan-sen and Kijun-sen may cross, forming a purchase signal. Meanwhile, the purchase signal continues to be fulfilled, formed by a Tenkan-sen and Kijun-sen cross-cut. The Tenkan-sen and Kijun-sen lines are the nearest resistance levels now. The upward movement may continue if the price remains above these resistance levels. The support levels turned out to be Senkou Span A and Senkou Span B (Ishimoku bands). At present, most likely that the downside trend would begin with a target near the upper Ishimoku line, taking into account that the price stood below the Kijun-sen rate. The Ishimoku rises further showing the upmove strengthening.

Chinkou Span is above the gragh that means growth. Consiquently, while this trend is in force and as more prospective looks like the sale, it\'s better to be ready for the price reversal.

Bollinger Bands:

This indicator is also on the upside, but there is a probability of current movement end. The bands are narrowing putting pressure on price. As we can witness, the price jumped from the bottom Bollinger band indicating an up-going motion start. The price also fixed below the middle line increasing confidence in further upcast motion.The tick down can be considered in case Bollinger bands go down.


MACD:

This index shows a possible downward trend outset at this time. For more confidence in descending movement it is necessary to wait for this signal confirmation, for instance, in form of Bollinger bands reversal or Ishimoku purchase signal build-up. For now the most probable developments is a lowering motion.

Have a good trading.
16 June, 2009
Stanislav Polianskiy