24.05.201110:48 Forex-elemzések és áttekintések: The EUR/USD technical analysis and trading recommendations for May 24, 2011

4-hour timeframe

Overview:
The euro is still observing the sell signal without a target level, formed yesterday, the MACD is also demonstrating a slight correction. The formed sell signal is strong and confirmed, since the Chinkou Span fixated below the price graph and the price is below the Ichimoku cloud. Thus, at the moment the first target for the downside movement is 1.4021 – the first support level. If this level is passed the second target will be the second support level at 1.3885. Downside movement remains while the price is below the Kijun-sen (1.4160), if the price fixates above this line it is recommended to cut short positions. The Chinkou Span is below the price graph, which confirms the current sell signal and indicates bearish sentiment. The Bollinger bands show downside movement, the lines are diverging and directed down. The MACD is ascending, thus indicating current correction movement, if it reverses down this will denote the end of the correction movement.

Trading recommendations:
Currently it is recommended to trade down with target at 1.4021 and further to 1.3885. Stop Loss should be placed above 1.4160 and stretched as the Kijun-sen declines. Short positions should only be opened after the MACD reverses down.
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.