Technical analysis and trading recommendations for the EUR/USD currency pair for March 4, 2010

The overall picture:

A long-expected trend has finally begun, as Bollinger Bands signaled about it.  A “buy” signal with the target level of 1.3962 is formed. At present moment, the price has not managed to strengthen above the resistance level of 1.3730. Therefore, the upward movement renewal is expected after a certain correction. Thereafter, the price rebound from Ishimoku or Kijun-sen is expected, after that, it will be possible to open positions targeted at 1.3730 again. In case of the price strengthening above the major resistance level, the next target will be at 1.3830. If the price is fixed below Kijun-sen, the “buy” signal will weaken. Chinkou Span is placed above the price curve, which signals about the upward movement. Bollinger Bands testify to the ascendant movement, the bands are diverging and up-directed that indicates the long-term uptrend. MACD is increasing that speaks for the current upward direction.

4-hour timeframe

Trading recommendations:

In the current situation, it is recommended to wait for the price rebound from either Kijun-sen or Ishimoku, around which the completion of the current upward correction is expected. After that, one can open long positions with the first target at 1.3730, but in case of fixing above this level, the target will be at 1.3830. Stop loss to set below Kijun-sen (1.3580).

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.

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