Thursday, August 11, 2011

EUR/NZD Ichimoku Technical Analysis - August 11, 2011

H4: As expected, the New Zealand dollar declined again to recent lows at 0.8070 during yesterday’s trading session, thus having broken down the support formed by the Tenkan-sen and the Kijun-sen in a 4-hour timeframe.

Therefore the major downtrend remains here. The Ichimoku cloud is negative and the Chinkou Span is still located below the price graph.

However, today in the morning the bulls appeared on the market again and recovered the NZD rate up to the Kijun-sen. As a result, the Rotation line headed to the upside as well, having formed a Gold Cross (3) with the Kijun-sen.

The Chinkou Span that appeared near the local oversold zone will probably let the market recover slightly.

The price might fixate above the Kijun-sen, otherwise the downtrend will be continued.

H1: In a 1-hour timeframe yesterday the bulls did not manage to break through the upper limit of the Cloud. The Senkou Span B and the Tenkan-sen located on these levels did not let the buyers go above the 0.8380 levels.

As a result, the NZD rate started to fall down abruptly and by the end of the day appeared in the negative area below the Ichimoku Cloud. Meanwhile the Tenkan-sen and the Kijun-sen formed a Dead Cross (5) that still applies and supports sellers on the market.

Therefore despite the consolidation inside the Tenkan-Kijun channel (3, 4) the downtrend remains. If in the nearest time the bulls do not manage to fixate above the Kijun-sen (4), we should expect the downtrend to continue.

Performed by Vadim Idrisov, Analytical expert
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