4-hour timeframe
Overview:
Yesterday the uprising movement started. New buy signal with a target to 1.3611 has formed. This signal is strong and confirmed as the Chinkou Span fixed above the price graph and the price strengthened above the Ichimoku cloud. Also the price managed to fixate above the first resistance level of 1.3375. In this case the first target for uprising movement is the 1.3526 level – the second resistance level. In case this level is passed the next target will be the third resistance level of 1.3632. The upside movement is observed until the price is above the Kijun-Sen (1.3298), if the price moves below this level then long positions should be closed. The Chinkou Span is above the price graph, thus confirming the current buy signal and pointing to bullish sentiment. Bollinger Bands show the beginning of upside movement, the lines are converging and directed up, thus indicating the end of the flat and beginning of the uptrend. The MACD is ascending, pointing to current upside motion.
Trading recommendations:
Currently it is recommended to trade up with the target to 1.3526. Stop Loss is placed below 1.3298. In case the MACD reverses down then long positions should be closed.
In addition to technical image, one should take into account the fundamental data and the time of their release.
The chart annotation:
Ichimoku 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.
