4-hour timeframe
Overview:
New sell signal has been confirmed and the Bollinger Bands have started to diverge. However, yesterday the signal weakened, as the price moved above the Kijun-Sen and entered the Ishimoku cloud. That is why in order to trade down it is recommended to wait for the strengthening of the current signal, in particular until the price fixates below the Kijun-Sen again. In this case, the first resistance level of 1.3781 will be the first target for the movement. If the price is below this level, the second resistance level of 1.3586 will be the target for the downside motion. In case this level is not broken through, the correction may start. The Chinkou Span is below the price curve, thus confirming the current sell signal. The Bollinger Bands show the downside movement, the lines are converging and directed down, thus indicating the probable end of the downtrend or the beginning of the correction. The MACD is ascending confirming the correctional movement.
Trading recommendations:
Currently, it is recommended to wait until the current sell signal confirms in particular the price should fixate below the Kijun-Sen, and then to trade down with the target to 1.3781 and further to 1.3586. The stop-loss is set above 1.3920.
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.
