TECHNICAL ANALYSIS EURUSD Retrospect
In the April edition of FX Trader Magazine I’ve prognosticated that if the price was going to close
above the Senkou Span A level on the Monthly chart, it would mean that a fully confirmed bullish Kumo breakout would happen and that would indicate
FX
future up movements on the lower timeframes too. Finally this breakout happened in April on the Monthly EURUSD chart. The price broke out
from the
Kumo and the Chikou Span confirmed the move too with straightly crossing up the price. As it was a fully confirmed bullish Kumo breakout, it was a very determinative happening. If the price is above the Kumo it means bullish trend on its own. The last time the price was residing above the Kumo was in January 2010, while
the last Figure 1: EURUSD Monthly Figure 2: EURUSD Daily Figure 3: EURUSD Weekly
fully confirmed bullish Kumo breakout happened in December 2003 followed by a more than 3.300 pips bullish run. On the Weekly EURUSD chart the price moved clearly up in April till May, when it left behind Kijun-Sen too far so Kijun-Sen turned flat and attracted the price back. This back move happened during May, while in June the equilibrium was finally created and the price could continue its way up with the confirmation of all other Ichimoku components. If we observe the Daily EURUSD chart too we can see that the back bounce, which happened on the Weekly chart during May, was caught up and supported clearly by the Senkou Span B line of the Daily Kumo. Furthermore this level nearly coincided with the Monthly Senkou Span B line too. It means that this support level was extremely strong so the up bounce was well predictable.
FX TRADER MAGAZINE July - September 2011 67
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