4-hour timeframe
Overview:
A new purchase signal with the target level of 1.3250 formed. The signal is strong and confirmed because the price position is above Ishimoku cloud and Chinkou Span id above the price curve. Therefore, now bullish trading with the first intermediate target of 1.3049 (the first resistance level) is recommended. In case of the price breaking through this level next target will be at 1.3186, the second resistance level. If the price fixates below Kijun-sen (1.2890) it will mean the ‘buy’ signal weakening and closing long positions is advisable. Chinkou Span is placed above the price curve, which means the preference to a rising motion. Bollinger bands show a slight upward movement, the bands are slightly diverging and up-directed. MACD is decreasing. However, this signal is false as MACD is lowering, but the price is not.
Trading recommendations:
In this situation, it is recommended to bull with the target at 1.3049 and further to 1.3186. stop loss to set below 1.2890.
Apart from the technical picture, it is important to consider the fundamental reports and time of their release.
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.