4-hour timeframe
Overview:
The sell signal with the target level at 1.3576 is still observed. This signal is strong and confirmed as the price managed to fixate below the Ishimoku Cloud and the Chinkou Span is below the price curve. Also the price fixated below the pivot level of 1.3780. In this case the first support level of 1.3477 is the target for price movement. If this level is passed, the next target will be the second support level of 1.3268. It should be mentioned that at present the correction movement has ended. If the price fixates above the Kijun-Sen (1.3625) this will indicate the weakening of the sell-signal and point to reduce short positions. The Chinkou Span is below the price graph, thus denoting the current sell signal. The Bollinger Bands show the downside movement, the lines are diverging and directed downwards. The MACD is descending, thus indicating the resumption of the downtrend.
Trading recommendations:
Currently, it is recommended trade down with the target to 1.3268, but only after the price fixates below 1.3477. The stop-loss is set above 1.3625. In case the MACD reverses upside 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.
