FX.co ★ Technical analysis and trading recommendations for the EUR/USD currency pair for June 1

4-hour timeframe

Overview:
A ‘sell’ signal canceled, a new ‘buy’ signal formed, however, as for other currency pairs we see flat. Now, the signal is not confirmed and weak as the price has not managed to fixate above Ishimoku and Chinkou Span has not managed to fixate above the price curve. However, Bollinger bands have converged testifying to a sideways motion. Therefore, trading is not recommended now, although with maintaining the current signal and in case of the price fixing above 1.2440 the beginning of upward movement is possible. The alerted factor is that the price cannot refresh previous low. Therefore, the renewal of downward movement is questionable. Chinkou Span is placed below the price curve, which indicates bearish sentiment. Bollinger bands show sideways movement – the bands are not diverging and directed sideways testifying to sideways motion. MACD is lowering, at the same time being very close to zero mark that also speaks for current flat.
Trading recommendations:
In this situation, it is advisable to wait for Bollinger bands diverging after which to determine deals direction and a signal from Ishimoku. In case of the renewal of the low from May 19 most likely the falling movement will continue.
The chart annotation:
Ishimoku indicator:
Tenkan-sen — red line
Kijun-Sen — blue line
Senkou Span A — light brown stipple line
Senkou Span B — light purple stipple line
Chinkou Span — green line
Bollinger Bands indicator:
3 yellow lines
MACD indicator:
The red line and the histogram with the white bars in the indicators window.