4-hour timeframe
Overview:
New sell signal is confirmed and the Bollinger Bands are diverging. The sell signal with the target at 1.5646 is strong, as the Chinkou Span is below the price graph, and the price is below the Ishimoku cloud. Moreover, the price had reached the first support level of 1.5796 and fixated below it. In this case, the current target for the downside movement is the second support level of 1.5602. Further, downwards tendency depends on the fact if the price can break through the second support level. If yes, then the third support level of 1.5447 will be the next target. In case this level is not breached, the correction movement can start. If the price fixates above the Kijun-Sen (1.5810) it is recommended to cut short positions, as the sell signal will weaken. The Chinkou Span is below the price graph, thus confirming the current sell signal. The Bollinger Bands show the downside trend, the lines are diverging and directed down. The MACD is descending confirming the downtrend.
Trading recommendations:
Currently, it is recommended to trend down with the target at 1.5602 and further to 1.5447. The stop-loss is set above 1.5810. In case the MACD reverses up the short positions should be cut.
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.