FX.co ★ The technical analysis and trading recommendations for EUR/USD pair for the period 27.07 – 31.07

Day timeframe

Ishimoku:

According to the illustration, we can see the possible rising trend start-up. For the last week there were some changes. The price stood above Tenkan-Sen and Kidjun-sen. Tenkan-Sen is up-directed, suggesting further ascending trend perspectives. Kidjun-sen is still on the upside, signaling that the upward movement goes on. In case, Tenkan-Sen turns down, it is recommended to cut the long positions. Currently, is practiced the purchase signal shaped up by Tenkan-Sen and Kidjun-sen cross-cut. Presently, Tenkan-Sen and Kidjun-sen lines appeared to be the next support levels. In case the price fixes below Tenkan-Sen, the next price target level will be Kidjun-sen. The purchase signal will weaken if Tenkan-Sen reverses down or amid the price fix-up below Kidjun-sen. The Ishimoku cloud continues its upside motion and widens also signaling about rising tendency extension, as well as Chinkou Span, which is above the graph. If the price sets up below Tenkan-Sen it will be possible to wait for a slight descending movement.

Bollinger Bands:

This indicator shows the start of rising trend. The lines are widening and up-directed. As we can see, the price jumped off from the bottom Bollinger band, signaling about a possible upward trend continuation and breaking through the upper Bollinger band. The downside motion can be considered in case the Bollinger bands are up-directed. In near term is also probable the sidewards movement within the Bollinger bands range. Consiquently, more perspective is seen the ascending trend.

MACD:

This indicator shows the present sideward movement. But, as other indicators signal about upside direction, in a short-term the MACD line will tick up. At present, the most probable scenario is — the rising tendency continuation.

Trading recommendations:

The EUR/USD currency pair will possibly extent the upward motion, as the most indicators signal about that. That is why it is recommended to trade on the upside until the price fixes below Kidjun-sen or Tenkan-Sen turns down. Until the price is around the upper Bollinger band there remains a high probability of rising trend extension. The short positions are not reasonable for now, as all indexes are on the upside.

The picture clarification

Ishimoku indicator:

Tenkan-sen — red line
Kidjun-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

Have a good trading

July 27, 2009

Stanislav Polianskiy