FX.co ★ Technical analysis and trading recommendations for the EUR/USD currency pair for November 27, 2009

4-hour timeframe

The whole picture:
As we can see, the sideways movement is over, the price went up to the second resistance level of 1.5109 and bounced from it, after that came back to pivot level (1.4891). The formed purchase signal will be canceled in a little while and we should be ready for the forming of the signal for sale. However, this situation is hazardous because the price came to the pivot level very fast and it is set to form the signal for sale. The outcome with the forming of the signal for sale and with the upward correction right after, which can break all current picture, is possible. That is why it is better to be cautious with sales. Obviously, the purchases are not relevant any more; therefore, we should wait for sale signal. Bollinger Bands are side-directed that adds more questions. MACD, in the contrast, is moving down in the fast pace.
The trading recommendations:
Start to trade just in case of the forming of the signal for sale. When it is formed it is possible to start the trading below the pivot level with targets of 1.4765, 1.4673. Stop should be set above the pivot level.
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 27, 2009