FX.co ★ The EUR/USD technical analysis and trading recommendations for November 24

4-hour timeframe

Overview:
New sell signal with a target to 1.2949 formed, since the price having left the Ishimoku Cloud did not confirm the previous buy signal. The current signal is strong and confirmed, as the price is below the Ishinoku cloud and the Chinkou Span managed to fixate below the price graph. In this case the second support level of 1.3315 is the first target for downside movement. In case this level is broken through the next target will be the third resistance level of 1.3186. The critical level below which the downside movement is till observed is 1.3560 (Kijun-Sen), it is recommended to cut short positions above this level. The Chinkou Span is below the price graph, thus confirming the current sell signal. Bollinger Bands show the beginning of the downwards trend, the lines are diverging and directed downside. MACD is descending, which also indicates the current downtrend.

Trading recommendations:
Currently, it is recommended trade down with the targets to 1.3315 and 1.3186. The stop-loss is set above 1.3560. In case MACD reverses upside we close short positions.

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.