4-hour timeframe
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Overview
As expected, buy signal is continuing. This signal is strong and confirmed as the price managed to fixate above the Ishimoku Cloud and the Chinkou Span strengthened above the price curve. However, yesterday the signal has weakened since the price fixed below the Kijun-Sen. Alongside, the price is above the pivot level of 1.5568, which offers the next target of the movement at 1.5789 – the first resistance level. In order to continue long trading it is needed to wait for the price fixation above Kijun-Sen that will strengthen the current signal. If such consolidation does not happen then it is recommended to wait for sell signal. The Chinkou Span is above the price chart, which is a confirmation of the current buy signal. The Bollinger Bands show the downward movement, the lines are diverging and directed downside. The MACD is descending thus demonstrating the current correctional movement.
Trading recommendations:
Currently, it is recommended to trade long with the target at 1.5789. Stop-loss is set below 1.5585. The moment to enter the market is after the MACD reverses upwards and price is fixed above the Kijun-Sen.
In addition to technical image one should take into account the fundamental data and the 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.
