4-hour timeframe
Overview:
New sell signal without the target level is observed on the franc. The signal is strong and confirmed, as the Chinkou Span managed to fixate below the price chart and the price fixed below the Ichimoku Cloud. It worth pointing out that the correction movement is presented, which has been signaled by the MACD. It is recommended to wait until the MACD reverses downside and correction ends, after the first target for the downwards movement will be the second support level of 0.9627. In case this level is passed the next target will be the third support level of 0.9528. The downside movement remains until the price is below the Kijun-Sen (0.9707), if the price fixates above this line it is advisable to cut short positions. The Chinkou Span is below the price curve, thus indicating the bullish sentiment and confirming the sell signal. The Bollinger Bands show the continuation of the downside trend, the lines are diverging and directed down, pointing to the current correction. The MACD is ascending indicating the correction.
Trading recommendations:
Currently it is recommended to trade down with the target to 0.9627, in case this level is passed the next target will be 0.9528. Stop Loss is placed above the Kijun-Sen – 0.9707. In case the MACD reverses down we enter the market.
In addition to technical image, one should take into account the fundamental data and the time of their release.
The chart annotation:
Ichimoku 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.