4-hour timeframe
Overview:
The correction against the uprising movement started yesterday. Buy signal with the target to 1.3611 is still observed. This signal is strong and confirmed as the Chinkou Span managed to fixate above the price graph and the price fixed above the Ichimoku cloud. However, the price is moving down and the MACD indicates the correction. Until the MACD reverses up it is not recommended to trade, after reversal the first target will be 1.3526 – the second resistance level. In case this level is passed the next target for uprising movement will be the third resistance level of 1.3632.
The upside movement remains until the price is above the Kijun-Sen (1.330), long positions should be closed in case the price fixates below this line. The Chinkou Span is above the price graph, thus confirming the current buy signal and bullish sentiment. The Bollinger bands show the continuation of uprising movement, the lines are diverging and directed up. The MACD is descending, thus pointing to the current correction motion.
Trading recommendations:
Currently it is recommended to trade up with the target to 1.3526. Stop Loss is placed below 1.3330. In case the MACD reverses up we enter the market.
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.
