Overview:
As we have supposed, the downward movement continues. The “sell” signal has the target level at 1.3386, which the price almost reached yesterday, therefore, the level can be considered as finished off. The price fixed below Ishimoku indicator an Chinkou Span – below the price curve that significantly strengthened the current signal. Therefore, the intermediate target of the decreasing motion is the support level of 1.3415. In case of the price fixation below this level, the next target will be the second support level of 1.3333. Now a correction is possible to start as the price has not managed to overcome the level of 1.3415 the second time. If the price strengthens above Kijun-sen the “sell” signal will weaken and it will be time to close short positions. But until the signal is weakened it is recommended to consider sales. Chinkou Span is placed below the price curve that indicates a downfalling mood. Bollinger bands show a downward movement – the bands are diverging and down-directed that signals about possible continuation of the descendant motion. MACD is moving down testifying to the current descendant motion.
Trading recommendations:
In current circumstances it is advisable to bear with the target at 1.3333, but only after the price fixing below 1.3415. Stop loss to set above 1.3525.
4-hour timeframe
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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.
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