TECHNICAL ANALYSIS
FX
change. For the remaining half of the year – after the price confidently reached the major resistance Kumo bottom – it was ranging around the 1.2000 level until it closed the year in the body of the Kumo cloud.
Figure 1: EURUSD Monthly Figure 2: EURUSD Weekly
On the EURUSD Weekly chart while the start of 2017 showed a bearish picture, the price immediately changed it direction and touched the major resistance level right at the end of January. However, the movement wasn’t strong enough to break the Kijun- Sen level, the price tried to break it again two months later in March, then again at the end of April and this time with success. The price not only broke the Kijun-Sen level in April, it continued its way up and performed a successful Kumo breakout in May. At the same time the Tenkan-Sen crossed the Kijun- Sen line from below supporting the newly-formed bullish trend and the Chikou Span also confirmed the breakout with clearly moving above all Ichimoku lines in June. The trend was clearly bullish for the remaining part of the year and even after the price retraced back to the Kijun-Sen line in November.
Figure 3: EURUSD Daily EURUSD Retrospect
On the EURUSD Monthly chart the year of 2017 started with a clear bearish picture as the price was moving below the Kumo, the Kijun-Sen and Tenkan-Sen lines;
and the Chikou Span was also below all the Ichimoku components. This bearish picture broke when the price crossed the Kijun-Sen line from below in May and at the same time the Chikou Span also crossed the price, indicating a minor trend
On the Daily chart the trend was mostly bullish during 2017, however the bullish direction was only confirmed at the end of March when the previous bullish Kumo-breakout was confirmed by the Chikou Span, and even then, the price retraced back to the
FX TRADER MAGAZINE January - March 2018 57
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