4-hour timeframe
Overview:
The buy signal with the target at 1.6057 is still observed, the Bollinger Bands are diverging again. This signal is confirmed, as the Chinkou Span has fixated above the price curve, and the price strengthened above the Ishimoku cloud. The target level has been passed already; however, the signs of the reversal are not seen, which means that the uprising movement is actual. The price has also fixated above the first resistance level of 1.6169, which offers the target at the second resistance level of 1.6297. In case the price overcomes this level the next target will be the third resistance level of 1.6550. If the price is below the Kidjun-Sen (1.6130), the buy signal will weaken and long positions should be cut. The Chinkou Span is above the price graph, thus confirming the current buy signal. The Bollinger bands show the upwards motion, the lines are diverging and directed upside. The MACD is directed downwards, denoting the beginning of the correction, we start trading up after the correction ends.
Trading recommendations:
Currently, it is recommended to trade up with the target at 1.6297 and further to 1.6550. The stop loss is set bellow the Kidjun-Sen 1.6130. In case the MACD turns upside we enter the market with long positions.
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.
