4-hour timeframe
Overview:
The buy signal with the target to 1.3451 is still presented. The current signal is confirmed, but weak, as the price is in the Ishimoku cloud and the Chinkou Span managed to fixate above the price graph. So, it is not recommended to trade up until the current signal strengthens. If the price strengthens above the Ishimoku cloud then the first target for uprising movement will be the first resistance level of 1.3577. In case the price breaks through this level, then the next target will be the second resistance level of 1.3742. The Kijun-Sen (1.3190) is the critical level above which the uprising movement maintains, below this level it is recommended to cut long positions. It is worth pointing out that the downside movement can be resumed in the nearest time, if the current movement turns out to be a deep correction. The Chinkou Span is above the price graph, thus confirming the current buy signal. The Bollinger bands show the upside motion, the lines are diverging and directed up. The MACD is ascending, pointing to the current upwards tendency; however, the upper limit of the Ishimoku cloud is not passed.
Trading recommendations:
Currently it is recommended to wait until the price strengthens above the Ishimoku cloud and then to trade up with the target to 1.3577 and further to 1.3742. Stop Loss is placed below 1.3190. In case the MACD reverses down, this will denote the beginning of the correction.
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.
