FX.co ★ Technical analysis and trading recommendations for the EUR/USD currency pair for December 10, 2009

4-hour timeframe

The whole picture:
The price is nearly the first support level. The formed sale signal is continuing to work out with target at 1.4622 (the first target of 1.4735 is reached). The price strengthening higher Kijun-sen will significantly weaken the current signal. Purchases are not actual now as we have the sale signal. Bollinger Bands are down-directed that also signals about the downward movement. MACD is supporting this tendency too, but it is showing a slight correction.
The trading recommendations:
For people, who are in sales now it is recommended to stay there with target at 1.4622, and in case of the strengthening below this level the target is at 1.4420. For those, who are out of the market it is recommended to wait for the price strengthening below the first support level and the downward movement continuation which MACD down reversal will signal about, after that, to open short positions with the same targets. After that, it is recommended to place stop loss above 1.4760.
The picture clarification:
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 10, 2009