4-hour timiframe
Overview:
The purchase signal with the target level of 1.3250 is going on. This signal is strong and confirmed, as the price is placed above Ishimoku cloud and Chinkou Span is above the price curve. Also, the price managed to fixate above the first resistance level of 1.3145. Therefore, the current target of the upward motion is the second resistance level of 1.3241. At the same time, the price for several times did not managed to overcome the second resistance, so now there is a possibility of a sideways movement. In case of the price overcoming this level, the next target will be at 1.3375, the third resistance level. If the price fixes below Kijun-sen (1.3155), it will mean the purchase signal weakening and long positions are recommended to be closed. Chinkou Span is above the price curve, which speaks for an increasing tendency. Bollinger bands indicate a sideways movement – the bands are directed sideways and not diverging. MACD is moving down testifying to the correction.
Trading recommendations:
In this situation it is advisable to bull with the target at 1.3241 and further to 1.3375. Stop loss to set below 1.3155. Enter the market with long positions in case of MACD up-reversal.
Besides 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.