4-hour timeframe
At the moment, we see the downward movement continuation with the target level of 1.5682, which the price reached. Also, the price came close to the major support level of 1.5529. Ishimoku indicator lines position speaks to that in the nearest time, at least, the correction to pivot level can take place. And as the target zone is worked out, the correction can pass into the upward trend. If the price strengthens below 1.5529, the next target will be 1.5381. Chinkou Span is situated lower than the price line that witnesses about the descendant movement and enhances the current sale signal. In case of the price fixing above Kijun-sen, the sale signal will ease. Bollinger Bands are down-directed and widening that signals about the downward trend. MACD also testifies the descendant movement. At the day timeframe, sale signal is working out further that strengthen more the current signal.
Trading recommendations:
It is recommended to bear with the first target at 1.5381, after the price fixates below the major support level of 1.5529. Stop loss to set above 1.5680 level.
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.
Happy trading,
Stanislav Polyanskiy
February 08, 2010
