FX.co ★ The technical analysis and the trading recommendations for the EUR/USD currency pair. Weekly review.

Day timeframe

Ishimoku:

According to the illustration, we see possible beginning of the downside movement, although this conclusion is based on the fact that the price cannot strengthen above the first resistance level of 1.5026. The price is still moving up and it is situated above Tenkan-sen and Kijun-sen lines. Tenkan-sen is still going up that can mean the upside movement renewal, however the price bounced from the resistance level for the second time. As for now, none indicator signals about reversal, but it can happen in the nearest future. Kijun-sen is still up-directed that testifies that the upside movement is being continued. The purchase signal formed by the cross of Tenkan-sen and Kijun-sen lines is still working out. At present, Tenkan-sen and Kijun-sen lines are the nearest support levels. The purchase signal will weaken when Tenkan-sen turns down or when the price goes below Kijun-sen. The Ishimoku indicator rises further but is starting to narrow, which signals about a possible fulfillment of an upward movement. Chinkou Span is still above the graph that also signals about the ascendant movement.

Bollinger Bands:

This indicator shows the sideway moving. The bands are not extending and directed sideways. As we can see the price strengthened above the middle Bollinger band approving a possible upward trend. The downward motion will only be considered in that case if the Bollinger bands go down. In the nearest time, both the downward and the upward motions are possible. Consequently, it is recommended to wait for a breaking through either the low or the upper Bollinger band for indicating of moving start.

MACD:

This index shows a turn and a downward trend at the moment. For now the most probable development of the events are a continuation of the sideway motion.

The trading recommendations:

The sideward move continuation is possible with the GBP/USD currency pair. Bollinger Bands are side-directed. It is recommended to buy the currency pair but only after the price will rise above the resistance level of 1.5026 and the price breaks through the upper Bollinger band. Otherwise, it is recommended to wait for the purchase signal forming.

The picture clarification:

The 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 luck in trading,

Stanislav Mikhailovich

November 23, 2009