4-hour timeframe
General view:
A new purchase signal with the target at 1.2982 has developed. The signal is weak and unconfirmed as Chinkou Span has not managed to overcome the price curve and the price is placed below Ishimoku indicator. Therefore, it will be possible to bull only after confirmation of the current signal. In case of confirmation, the first target will be the lower limit of Ishimoku cloud. Otherwise, the downward movement is likely to renew. If the price fixates above Kijun-sen (1.2830), the current purchase signal will weaken and long positions should be closed. Chinkou Span is below the price curve, this confirms the extending descendant trend. Bollinger bands is indicating a sideways tendency, the bands are not diverging and directed sideways. MACD is increasing, testifying to the continuation of ascendant movement.
Trading recommendations:
Under such conditions, it is advisable to wait for confirmation of the current signal, after that it is recommended to trade with the target at 1.2982 can be renewed. Place stop loss below 1.2830.
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.