4-hour timeframe
Overview:
The Bollinger Bands started to diverge and the price continued to advance steadily after slight correction. New buy signal has formed. This signal is very strong and confirmed, as the price is above the Ishimoku cloud and the Chinkou Span is above the price curve. The first target for the current movement is 1.4098 – the first resistance level. In case the price breaks through this level, the next target will be 1.4258 – the second resistance level. If the price is below the Kijun-sen (1.3930), this will denote the weakening of the current signal and point to reduce long positions. The Chinkou Span is above the price curve, thus confirming this buy signal. The Bollinger bands show the upward movement, the lines are diverging and directed upside. the MACD is ascending testifying about the end of the correction and resumption of uptrend.
Trading recommendations:
Currently, it is recommended to trade long with the target to 1.4258, we enter the market after the price fixates above 1.4098. Stop-loss is set below 1.3930.
In addition to technical image, one should take into account the fundamental data and the 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.