4-hour timeframe
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Overview:
Like with other currency pairs, after the strong movement a sideway advance has started. However we have a buy signal targeted to 98,76. The signal has been confirmed by the fixating of the Chinkou span above the price curve and by strengthening of the price above the Ishimoku cloud. We also see the possibility of the sideways movement being signaled by the Bollinger bands. Thus if the current signal remains as strong, after the Bollinger bands diverge upwards, it will be possible to buy the pair with the first aim at 95,06 which is the first resistance level. The Bollinger bands show the sideways motion as the lines are converging and directed to the sides, this signals that the falling movement is likely to end and a flat can appear in the near term. The MACD is ascending demonstrating the current uprising advance.
Trading recommendations:
Currently, it is recommended to wait for the beginning of the Bollinger Bands’ divergence upwards, and open long thereafter with a target of 95.06. The stop- loss is places below 92.30.
The chart annotation:
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.
