4-hour timeframe
Overview:
The euro is still in upside movement and observing the buy signal with target level 1.4826, we should also mention a slight correction. The formed buy signal is strong and confirmed, since the Chinkou Span fixated above the price graph and the price is above the Ichimoku cloud. Thus, at the moment the first target for the upside movement is 1.4668 – the third resistance level, as the previous two were passed. If this level is passed the second target will be the resistance level of the bigger timeframe at 1.4852. Upside movement remains while the price is above the Kijun-sen (1.4400), if the price fixates below this line it is recommended to cut long positions. The Chinkou Span is above the price graph, which confirms the current buy signal and indicates bullish sentiment. The Bollinger bands show the continuing upside movement, the lines are diverging and directed up. The MACD is descending, which indicates current correction movement, therefore it is recommended to resume upside trading after it reverses back to the upside.
Trading recommendations:
Currently it is recommended to trade up with target at 1.4668 and further to 1.4852. Stop Loss should be placed below 1.4400 and stretch it up as the Kijun-sen advances. Open long positions after the MACD reverses back to the upside.
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.