4-hour timeframe
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Overall picture:
The ‘buy’ signal with the target level at 1.3250 is going on. This signal is strong and confirmed, as the price is placed above Ishimoku and Chinkou Span is above the price curve. At the same time, the price managed to fixate above the first resistance level of 1.3145, but it did not overcome the second resistance of 1.3241. Therefore, the current target of the ascendant motion remains the second resistance level of 1.3241. It is advisable to wait for the present correction completion to refresh bullish trading. In case of the price overcoming the level of 1.3241, the next target will be at 1.3375, the third resistance level. If the price fixes below Kijun-sen (1.3191), it will mean the purchase signal easing and long positions are recommended to be closed. Chinkou Span is above the price curve, which speaks for a rising tendency. Bollinger bands indicate a slight increasing movement – the bands are converging a little and up-directed. MACD is moving down signaling about the current correction.
Trading recommendations:
The existing circumstances suggest to bull with the target at 1.3241, but only after MACD reverses upwards. Stop loss to set below 1.3191. Otherwise, it is better to wait for the sales signal.
Apart from the technical picture, it is important to consider the fundamental reports and time of their release.
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.
