4-hour timeframe
The general picture:
The descendant movement is continuing further with the target level at 1.3411. Sale signal is working out and, for now, there are no signs of its weakening. The price also fixed below pivot level of 1.3777. Now it is moving to the major support level of 1.3533, which is the first target. Therefore, it is recommended to bear with this target. In case of the price strengthening lower than this level, the next target will be 1.3411. Ishimoku indicator is widening again, Senkou Span A is moving down that signals about the downward trend. If the price fixates above Kijun-sen, sale signal will weaken and you should to close short positions. Bollinger Bands are showing the descendant movement – the bands are widening and down-directed. MACD is lowering that testifies about the downward motion.
Trading recommendations:
As for now, it is recommended to bear with targets at 1.3533 and 1.3411. Stop loss to set above Kijun-sen (1.3790).
The picture clarification:
Ishimoku 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.
Good trading,
Stanislav Polyanskiy
February 08, 2010
