4-hour timeframe
Overview:
The euro did not strengthen the downside signal and it is about to be cancelled, the price fixated below the Kijun-sen, which weakened the current buy signal even more, therefore a new sell signal is expected to be formed in the nearest time. The formed buy signal is confirmed, but weak since the Chinkou Span fixated above the price graph and the price is below the Ichimoku cloud. Thus, at the moment it is recommended to wait until the current signal strengthens or a new one is formed, in the first case the first target for the upside movement is 1.3981 – the second resistance level. If a new sell signal is formed the target will be the first support level at 1.3463. Upside movement remains while the price is above the Kijun-sen (1.3630), if the price fixates below this line (which has happened) it is recommended to cut long positions. The Chinkou Span is above the price graph, which confirms the current buy signal and indicates bullish sentiment. The Bollinger bands show sideways movement, the lines are not diverging and directed sideways, which denotes a flat. The MACD is ascending, which indicates current downside movement.
Trading recommendations:
Currently it is recommended to wait until the current signal strengthens or a new one is formed. A new sell signal is more likely to be formed. In this case the targets will be the closest support levels..
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.
