Thursday, August 11, 2011

EUR/USD Technical Analysis - August 11, 2011

Forex market analysis for August 11 shows that at the moment downtrend still remains and there are frequent rollbacks and corrections. The downtrend is moving to side movement. It is not recommended to trade this pair now. The buy signal is confirmed and weak, since the Chinkou Span fixated over the price graph and the price is below the Ichimoku cloud. At the moment the first target is 1.4660– the second support level. Upside movement remains while the price is below the Kijun-sen (1.4240), if the price fixates below this line it is recommended to cut long positions. The Chinkou Span is above the price graph, which confirms the current buy signal and indicates bullish sentiment. The Bollinger bands show side movement, which prevents us from bullish trading. Yet due to high volatility and frequent corrections trading is not recommended in general.

Trading recommendations:

Currently it is recommended to wait until the market stabilizes. Trading is dangerous now as losses are rather likely to occur.
In addition to technical image, one should take into account the fundamental data and the time of their release.

The chart annotation:

Ichimoku 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 white bars in the indicators window.

Performed by Stanislav Polyanskiy, Analytical expert

InstaForex Companies Group © 2007-2011