4-hour Timeframe
Overview:
According to the Forex market analysis for September 23, the price moved away from the Ichimoku Cloud and passed the first support level to begin a correction further. The formed sell signal is strong and confirmed, since the Chinkou Span fixated below the price graph and the price is below the Ichimoku cloud. At the moment the first target is 1.3302 – the second support level, which was reached by the price but not passed yet. If this level is passed the second target will be the third support level at 1.3109. Downside movement remains while the price is below the Kijun-sen (1.3585), if the price fixates above this line it will denote possible end of downside movement and a signal to cut short positions. The Chinkou Span is below the price graph, which confirms the current sell signal and indicates bearish sentiment. The Bollinger bands show continuing downside movement, the lines are diverging and directed down. The MACD is ascending, which indicates current correction movement, this filter does not allow us to trade down now, but after the MACD reverses down we can resume selling.
Trading recommendations:
Currently it is recommended to trade down with target at 1. 3302 and further to 1. 3109. Stop Loss should be placed below 1. 3585 and stretched down as the Kijun-sen declines. It is recommended to open short positions after the MACD reverses down.
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.