4-hour timeframe
Overview:
The sell signal with the target at 1.3576 is still observed. This signal is strong and confirmed, as the price strengthened below the Ishimoku cloud and the Chinkou Span fixated below the price curve. The second support level of 1.3640is a first target for the price movement. In case this support level is passed the next target will be the third support level of 1.3418. Also it should be said that the correction motion can start, since the lines of the Kidjun-Sen and Tenkan-Sen strongly moved away from each other. If the price strengthens above the Kidjun-Sen (1.3945), it will denote the weakening of the sell-signal and point to cut short positions. The Chinkou Span is below the price graph, thus confirming the current sell signal. The Bollinger Bands show the downside motion, the lines are diverging and directed downwards. The MACD is ascending, thus indicating the current correction movement against the downtrend.
Trading recommendations:
Currently, it is recommended to trade down with the target at 1.3640 and further to 1.3418. The stop-loss is set above 1.3945. In case the MACD reverses downside we enter the market.
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.
