EUR/USD, Mon Jan/05/2015, MACD Analysis: Bearish-Trend Strong Indication, -0.75% Decrease in The Last Update

Figure-1 EUR/USD MACD (TF:D1, Mon Jan/05/2015 00:00:00)

A moving average convergence/divergence (MACD) technical analysis for EUR/USD is generated for candle close at Mon Jan/05/2015 00:00:00. The indicator presentation is depicted in the Figure 1, showing the candlestick plot on the top, the MACD indicator bar and line in the middle, and the MACD-Signal difference bar in the bottom. The indicator computation and presentation method complies with MetaTrader version of MACD [1], and additional MACD-Signal difference is shown to add the analysis with the price acceleration/decceleration representation (as presented by MACD histogram in other version [2]).

MACD Sign as Trend Direction Identification: An under-zero of MACD bar is recorded by the indicator, and it gives a sign of a bearish-trend. The yesterday closing (Fri, Jan 02) shows -0.75% (-90.80 pips) decrease in price from 1.21007 to 1.20099, this could be an indication that the trend will continue its run. With the last recorded MACD cross is produced 131 trading days ago on 07/03/2014 and followed by the signal cross triggered 164 trading days ago on 05/19/2014, disregarding the price acceleration/decceleration, the bearish-trend is predicted to keep its journey.

Price Acceleration Identification with MACD-Signal Diference: This MACD histogram analysis is applicable if the MACD-Signal crossover is prefered as the trading signal. The acceleration of the price movement has never change its direction for the last 10 trading days since the former crossing on 12/19/2014, and the short floating trade should be held until the next crossover. The acceleration direction (indicated by the sign of the level) and the current trend detected by the MACD level show that both acceleration and the trend get the same direction, so a strong bearish-trend is expected to continue.

REFERENCES

  1. MACD Technical Analysis, Technical analysis with MetaTrader version of MACD
  2. MACD Wikipedia, Various implementation of moving average convergence/divergence analysis

Presented Analysis
Data time: 2015-01-05 00:00:00
Optimization data:
Created time: 2018-02-21 12:35:38
Realtime: no
Private publish time: 2018-02-21 12:38:04
Analysis Model Summary
First created: 2018-02-21 12:35:38
First data: 2015-01-05 00:00:00
Historical data since: 2018-02-21 12:35:38
Realtime data since: 2018-02-22 00:00:00
Latest data: 2018-03-23 00:00:00