FX.co ★ Technical analysis and trading recommendations for the EUR/USD currency pair for December 2, 2009

4-hour timeframe

The whole picture:

The price came closely to the first resistance level, which it had already tested. The formed purchase signal is continuing to work out exactly with the target of the first resistance level (1.5147). In case of the price strengthening is above this level its next target will be 1.5306. As for now, we should consider just purchases as the most signals are for upward movement. In case of the price strengthening is lower Kijun-sen purchase signal will weaken. Bollinger Bands are side-directed that brings additional questions. MACD is conversely moving up.

The trading recommendations:

For people, who are in purchases now it is recommended to stay there with the first target of 1.5147, but in case of strengthening above it – 1.5306. For people, who are out of the market it is recommended to wait for the price strengthening higher the first resistance level and only after that to open purchase positions. Sales are not interesting for now.

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
December 2, 2009