TECHNICAL ANALYSIS
However no high-volume movements
happened, but the
price marched up consistently with the support of Kijun-Sen above the Kumo cloud. The Kijun-Sen represents a very important and strong support line here as the price bounced up from it several times during the last few months. The Chikou Span was also supporting the movement along with the Kumo future. On the daily EURUSD chart April started with a strong bullish Tenkan/Kijun cross. As the price was above both the Kumo and the Tenkan-Sen Kijun-Sen lines, the future Kumo was bullish and the Chikou Span was supporting the move too. Moving above the price, it was a fully
supported
and confirmed entry point. After this, the Kijun-Sen turned flat and it attracted the price back a bit. Finally, the equilibrium was created and the price continued it’s way up. From the confirmed entry point till the end of April it marched up about 400 pips and reached a new yearly high at 1.6746. Then it fell down to the strong Kumo support level and after that it started to range in the body of the Kumo cloud.
GBPUSD Prospect
There is a very significant conflict between the Monthly and Weekly GBPUSD
charts. While the
Monthly chart is a bit mixed but still bearish, the Weekly chart is purely bullish. This conflict will be
Figure 8: USDCHF Daily FX TRADER MAGAZINE July - September 2011 69
solved if the price breaks the strong Monthly Senkou Span B resistance level at 1.7331, or if it continues its way down, breaking the bottom of the Weekly Kumo at 1.5264. If the price marches in the body of the Kumo on the Monthly chart, this will indicate that the direction of the price is still undecided and further unpredictable ranging periods could happen.
USDCHF Retrospect
The previously predicted down movements took place during the last three months on the
USDCHF currency the USDCHF Monthly
FX
pair. On chart
the price was moving below the Kumo, the Tenkan Sen and Kijun-Sen. The Chikou Span was also below all other Ichimoku components, the Tenkan-Sen was below Kijun-Sen and the future Kumo was bearish too. On the Weekly USDCHF the picture was exactly the same: clearly bullish with the support and confirmation of all Ichimoku components. On the Daily USDCHF chart a strong bearish Tenkan/Kijun cross happened on the 14th of
Figure 7: USDCHF Monthly
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