Overview:
This situation is similar with the euro. The price, having not completed the planned targets, began to move in sideways direction again. We see, as the price moves in the sideways channel, which is clearly signaled by Bollinger bands. This fact can cause the formation of false signals, thus, it is recommended to be out of the market during flat continuation. The side motion is limited by the channel of 1.0799 – 1.0695. By far, a “buy” signal is developing. Opening long positions will be possible after divergence of Bollinger bands, which will denote an ascendant trend. In case of the price fixing below Kijun-sen, this signal will be weakened too, as well as the cancelled previous two signals. Chinkou Span is positioned above the price curve, which, for now, indicates an upward trend. Bollinger bands show a sideway movement – the bands are not diverging and are directed sideways, which also suggests the flat. MACD is increasing, which means the current downtrend, however, it is situated around zero level, which also denotes the flat.
Trading recommendations:
Under the circumstances, it is recommended to wait for a new trend emergence, and only then enter the market. One can also cautiously try to sell the currency pair targeted to the lower Bollinger band – 1,0700. The stop-loss is setup above 1.0815 in this situation.
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