FX.co ★ Technical analysis and trading recommendations for EUR/USD for 15 June 2010

4-hour timeframe

Overview:
A long-awaited ascendant motion has started. A ‘buy’ signal with the target level of 1.2363 has formed. Therefore, in the nearest future, the purchases are advisable to consider. The signal is strong and confirmed, as the price has fixated above Ishimoku indicator and Chinkou Span – above the price curve. Therefore, now it is recommended to bull with intermediate targets at 1.2214 and 1.2321 – the first and second resistance levels. In case of the price fixing above 1.2214 the next target will be at 1.2321, the second resistance level. However, we also see that now a small correction is possible, which MACD testifies to. If the price fixates below Kijun-sen, closing of long positions is advisable. Chinkou Span is positioned above the price curve indicating rising sentiment. Bollinger bands show upward motion – the bands are diverging and up-directed that speaks for ascendant movement continuation. MACD is climbing signaling about bullish sentiment.
Trading recommendations:
In this situation, it is recommended to bull with target at 1.2321, enter the market after MACD up-reversal. Set stop loss below 1.2115.
The chart annotation:
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.