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 curve. The price is near the first support level of 1.3033, which is the first target for downside movement. In case this level is passed the next target for movement will be the second support level of 1.2824. Kijun-Sen (1.3150) is the critical level below which the downwards motion remains, it is recommended to cut short positions above this level. It is worth pointing out that the target level has been passed already, and the MACD reversed to up, which denotes the correction movement. The Chinkou Span is below the price graph, thus confirming the current sell signal. Bollinger Bands show the continuation of the downtrend, the lines are slightly converging and directed down, thus pointing to the correction tendency against the downtrend. MACD is ascending, thus also indicating the current correction motion.
Trading recommendations:
Currently it is recommended to trade down with a target to 1.3033 and further to 1.2824. Stop Loss is placed above 1.3150. We enter the market only after MACD turns down.
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.
