4-hour timeframe
Overview:
The sell signal with a target to 1.5531 is still observed. The current signal is strong and confirmed, as the price managed to fixate below the Ishimoku cloud and the Chinkou Span is below the price graph. In this case the first target for downside movement is the first support level of 1.5416. If this level is passed the next target will be the second support level of 1.5240. Kijun-Sen (1.5635) is the critical level below which the downwards motion maintains, it is recommended to cut short positions above this level. Also it is worth pointing out that the target level of 1.5531 has been passed already and MACD indicated the correction movement, which can be the beginning of new uptrend. The Chinkou Span is below the price graph, thus confirming the current sell signal. Bollinger Bands show the continuation of downside motion, the lines are converging and directed down, thus pointing to correction movement against the downtrend. MACD is ascending, which means the beginning of correction tendency.
Trading recommendations:
Currently it is recommended to trade down with a target to 1.5416 and further to 1.5240. Stop Loss is placed above 1.5635. We enter the market only after the correction ends, which will be indicated by the turndown of MACD.
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.