4-hour timeframe
Overview:
The sell signal with the target to 1.2949 is still observed. The current signal is strong and confirmed, as the price is below the Ishimoku Cloud and the Chinkou Span is below the price graph. That is why the first target for the downside movement is the second support level of 1.3315, which the price reached but has not yet overcome. In case the second resistance level is passed the next target will be the third support level of 1.3186. The critical level below which the downside movement is presented is Kijun-Sen (1.3530), it is recommended to cut short positions above this level The Chinkou Span is below the price graph, thus confirming the current sell signal. Bollinger Bands show the continuation of downwards movement, the lines are diverging and directed down. MACD is ascending, thus showing the slight correction movement.
Trading recommendations:
Currently, it is recommended to trade down with the target to 1.3186, we enter the market only after the price fixates below 1.3315. Stop Loss is placed above 1.3530. Also in order to trade down it is necessary to wait for MACD reverses downside.
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.
