The euro has completed the upside movement, a new sell signal with target level 1.3250 has formed, but the price is inside the Ichimoku cloud yet. The formed buy signal is confirmed, but weak since the Chinkou Span fixated below the price graph and the price entered the Ichimoku cloud and is still located near it. Thus, at the moment it is recommended to wait until the price passes the Ichimoku cloud, in this case the first target for the downside movement is 1.3463 – the first support level. If this level is passed the next target will be the second support level at 1.3343. Downside movement remains while the price is below the Kijun-sen (1.3670), if the price fixates above this line it is recommended 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 possible sideways movement, the lines are not diverging and directed sideways. The MACD is ascending, which indicates current correction movement, therefore it is recommended to start trading down after it reverses down.
Trading recommendations:
Currently it is recommended to wait until the price passes the Ichimoku cloud and trade down with the target to 1.3463, and further to 1.3343. Stop loss should be placed above 1.3670. Short positions should be opened after the MACD reverses down.
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