FX.co ★ Technical analysis and trading recommendations of EUR/USD for June 9

4-hour timeframe

Overview:
A sideways correction within the falling movement keeps on. The low from May 19 was renewed, as we supposed, it became a signal for further sales. The ‘sell’ signal with the target at 1.1700 is finishing off. The signal is strong and confirmed because the price has managed to fixate below Ishimoku cloud and Chinkou Span – below the price curve. Therefore, for now it is recommended to bear with intermediate target at 1.1829, the first support level. In case of the price fixation below this level next target will be the second support level of 1.1694. Chinkou Span is below the price curve, indicating bearish sentiment. Bollinger bands show a downward movement – the bands are diverging and down-directed that testifies to descendant movement continuation. MACD is rising, signaling about a small current correction.
Trading recommendations:
In these circumstances it will be reasonable to bear with the target at 1.1829. in case of the price fixing below this level with the target at 1.1694. Stop loss to set above 1.2110. enter the market with short positions only after MACD reversal downwards.
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.