The EUR/USD technical analysis and trading recommendations for February 10, 2011 2011-02-10

Overview:
The euro did not strengthen the downside signal, as a result it cancelled and a new buy signal with target level 1.3960 has formed. The formed buy signal is confirmed, but weak since the Chinkou Span fixated above the price graph and the price entered the Ichimoku cloud and is still located near it. Thus, at the moment it is recommended to wait until the price passes the Ichimoku cloud, in this case the first target for the upside movement is 1.3981 – the second resistance level. If this level is passed the next target will be the third resistance level at 1.4101. Upside movement remains while the price is above the Kijun-sen (1.3630), 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 possible sideways movement, the lines are not diverging and directed sideways, which denotes a flat. The MACD is ascending, which indicates current upside movement, if it reverses down, this will indicate the beginning of correction movement.





Trading recommendations:
Currently it is recommended to wait until the price passes the Ichimoku cloud and trade up with the target to 1.3981. Stop loss should be placed below 1.3630. Long positions should be cut manually if the MACD reverses down.

http://instaforex.com/forex_analysis/22963/?x=OUE