Technical Analysis on EURUSD

In this short-term graph the areas where the wicks (shadows) of the candles touch the Bollinger Bands are in orange.

As you can see, when the upper wick touches the upper Bollinger band, this indicates a trend change. Signals that a reversal begins.

When the bottom wick is below the bottom band is starting un up signal.

As shown in the graph, this pattern is quite accurate; therefore, it is important to understand its implications.

Also highlighted in the MACD chart when long-term averages cross with the shorter term. As you can see those areas marked with a red circle, crossing of averages is a signal that strengthens the signals that the Bollinger bands give to us.

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Euro Dollar Relationship

We return the discussion of the pair EUR / USD because this time we see that there has been a strong movement to strengthen the dollar. Slowly but consistently the Dollar was gaining to the Euro, and recovered in 5 cvs. We signaled that earlier in our analysis of March 17 th. (Spanish version only)

At that time, we anticipated the rise from 1.30 to 1.35. As is evident from the graph at that day the USD hit a significant leap upward. Today, it has broken the barrier of 1.30, but downturn, and also in a violent manner.

It is known that when prices touch the bollinger bands on the bottom, that is an indicator of the market botton, and an opportunity to purchase. We will have to see the development of this pair, but if we follow the bollinguer bands we should buy Euro and sell dollar.

If you look at the Relative Strength Index RSI in the graph, we can see that when the EURUSD jump from 1.30 to 1.35 the index was above 70 (overbought) and when fall, is below 30 (oversold). At this time, the RSI is escalating.

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