4-hour timeframe
Overview:
The correction ended near the Kijun-Sen and the downside movement resumed. The target level of a sell signal is 1.2966. This signal is strong and confirmed, as the price managed to fixate below the Ishimoku cloud and the Chinkou Span fixed below the price graph. The correction movement has also ended, which is indicated by the MACD. In this case the first target for downside movement is 1.3047 – the first support level. If the first support level is passed the next target will be the second resistance level of 1.2907. The downside movement remains until the price is below the Kijun-Sen (1.3310), the short positions should be closed if the price strengthens above this line. The Chinkou Span is below the price graph, thus confirming the current sell signal and indicates the bullish sentiment. The Bollinger bands show the downwards movement, the lines are directed down and diverging. The MACD is descending, thus point to the current downtrend.
Trading recommendations:
Currently it is recommended to trade down with the target to 1.3047, in case this level is passed the target will be 1.2907. Stop Loss is placed above 1.3310. If the MACD reverses up the short 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.
