4-hour timeframe
Overview:
The euro has resumed upside movement and started a correction; the signal weakened as the price fixed below the Kijun-sen. The formed buy signal was strong and confirmed initially, but at the moment it is weak since the Chinkou Span fixated below the price graph and the price is below the Ishimoku cloud. It is obvious that everything indicates cancellation of the upside movement and formation of a sell signal. Thus, at the moment it is recommended to wait until the sell signal is formed and confirmed, in this case the first target for the downside movement is 1.3514 – the first support level. If this level is passed the next target will be the second support level at 1.3417. The Chinkou Span fixed below the price graph, which does not confirm the current buy signal and indicates bearish sentiment. The Bollinger bands show the beginning of the downside movement, the lines are diverging and directed down. The MACD is descending, which indicates current downside movement.
Trading recommendations:
Currently it is recommended to wait until the sell signal is formed and trade down with the target to 1.3514, and further to 1.3417. Short positions should be cut if the MACD reverses up.
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 white bars in the indicators window.