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Forex Analysis: 5 Jul 2009, 19:00 UTC+00

Technical analysis of the currency pair EUR/USD for 06.07 – 10.07

Daily timeframe.

According to the illustration, we see the changes of tendencies and a possible descending movement. The picture has not changed for the previous week. The price is below Tenkan-sen and Kijun-sen lines. Tenkan-sen changed its direction to the upward trend, which leaves in doubt the further perpectives of the downward trend. The price did not manage to stay for a long time above Kijun-sen and returned to the area below this line. Kijun-sen is still up-directed signaling that the ascending motion may recover. Tenkan-sen and Kijun-sen has been crossed, thus forming a purchase signal, which can be cancelled in near future. In general, now there is a mixed situation. It is necessary to wait for theTenkan-sen\'s turning down for starting purchases. For buying — the price\'s strengthening above Kijun-sen. The support levels at this moment are the lines of Senkou Span A and Senkou Span B (Ishimoku indicator bands). the resistance levels - Tenkan-sen and Kijun-sen lines. At present, most likely that the downward trend will start with a target near the upper Ishimoku line, however, you have to take this variant into account only when Tenkan-sen has been turned. The Ishimoku indicator continues its upward motion, it is still widening, signaling about a possible proceeding of an upward movement. Chinkou Span is still above the price diagram and in the nearest time will be able to cross, which means the confirmation to the purchase\'s signal.

Bollinger Bands:
This indicator also shows us a sideway moving. The bands narrowed and directed sideways. As we can see, the price ticked up from the low Bollinger band signaling about a possible proceeding of the upward trend, and strengthened above a middle line, which means a possible price movement to the upper line. If Bollinger bands go down, then it will be possible to consider a downward movement. In the nearest time the sideways motion is also possible within Bollinger band zone, at breaking through of which the trend movement may start. Consequently, you should waiting for this breaking through, in order to determine the trend\'s direction.

This index shows a possible downward trend at this time. For more confidence in the descending movement it is necessary to wait for this signal confirmation, for example, in the form of Bollinger bands reversal. As of now, the most probable development of the events is a continuation of the downward motion.

Explanations to the chart:
Ishimoku indicator:
Tenkan-sen — a red line
Kijun-sen — a blue line
Senkou Span A - light — brown dotted line
Senkou Span B — light — purple dotted line
Chinkou Span — a green line

Bollinger bands indicator:
3 yellow lines

Indicator MACD:
A red line and a hystogram with white bars in the indicator\'s windows.

Have a good trading.
06 July, 2009
Stanislav Polyanskiy.


InstaForex Group © 2007-2017  Published: 5 Jul 2009, 19:00 UTC+00

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