4-hour timeframe
Overview:
The Euro has been demonstrating the sell signal with target level at 1.2899. The formed sell signal is strong and confirmed since the Chinkou Span fixed below the price graph and the price managed to fixate below the Ishimoku cloud. Thus, the first target for the downside movement is 1.2933 – the second support level. If this level is passed the next target will be the third support level at 1.2796. The downside movement continues while the price is below the Kijun-Sen(1.3255), if the price manages to fixate below this line it is recommended to cut long positions. The Chinkou Span fixed below the price graph, which confirms the current sell signal and indicates bearish sentiment. The Bollinger bands show the continuing downside movement, the lines are diverging and directed down, thus pointing to the correction against the current upside movement. The MACD is descending, indicating the current downside movement.
Trading recommendations:
Currently it is recommended to trade down with the target to 1.2933, and further to 1.2796. Stop Loss should be placed above 1.3200. Short positions should be cut manually in case the MACD reverses up.
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.
