4-hour timeframe
Overview:
The sell signal has been cancelled, instead a new buy signal with target level 1.3397 has been formed. The formed signal is strong and confirmed since the Chinkou Span fixed above the price graph and the price managed to fixate inside the Ishimoku cloud. Thus, the first target for the upside movement is 1.3270 – the second resistance level. If the second resistance level is passed the next target will be the third resistance level of 1.3340. The upside movement continues while the price is above the Kijun-Sen(1.3153), if the price manages to fixate below this line it is recommended to cut long positions. The Chinkou Span is above the price graph, thus confirming the current buy signal and indicating the bullish sentiment. The Bollinger bands show the beginning of the upside movement, the lines are diverging and directed up. The MACD is ascending, thus pointing to the current upside movement.
Trading recommendations:
Currently it is recommended to trade up with the target to 1.3270, in case this level is passed the target will be 1.3340. Stop Loss should be placed below 1.3153. In case the MACD reverses down long positions should be cut manually
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 white bars in the indicators window.
