FX.co ★ The EUR/USD technical analysis and trading recommendations for November 22

4-hour timeframe

Overview:
As it was forecasted the sell signal cancelled, the downside movement ended and buy signal with the target level of 1.3953 formed. The current signal is strong and confirmed, as the Chinkou Span managed to fixate above the price curve and price entered the Ishimoku cloud. The current target for the uprising movement is the upper limit of the Ishimoku Cloud (1.3923), which is also a resistance level. In case the first resistance level is broken through the next target will be the second resistance level of 1.4098. The Kijun-Sen (1.3620) is a critical level above which the upside movement is observed; in case the price moves bellow this level the long positions should be cut. The Chinkou Span is above the price graph, thus confirming the current buy signal. The Bollinger Bands show the beginning of the uptrend, the lines are diverging and directed upside. MACD is ascending, thus confirming the current upwards movement.

Trading recommendations:
Currently, it is recommended trade up with the target to 1.3923; in case this level is broken through then the target will be 1.4098. The stop-loss is set below 1.3620. If the MACD reverses downside the long positions should be cut.

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.