4-hour timeframe
Overview:
New sell signal is confirmed, the Bollinger Bands started to diverge. The sell signal with the target to 1.3790 is strong now, as the Chinkou Span is below the price curve, and the price is below the Ishimoku Cloud. Moreover, the price has reached the first support level of 1.3781. In this case, the next target for the downside movement is the second support level of 1.3586. If this level is not broken through, the correctional movement can start. In case the price is above the Kijun-Sen (1.3920) it is recommended to cut short positions, as the sell signal will weaken. The Chinkou Span is below the price graph, thus confirming the current sell signal. The Bollinger Bands show the downtrend, the lines are diverging and directed down. The MACD is descending, testifying about the current downward movement.
Trading recommendations:
Currently, it is recommended to trade short with the target to 1.3586. Stop-loss is set above 1.3920. If the MACD reverses up the short positions should be cut.
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.
