Overview: The euro is still in upside movement and observing the buy signal with target level 1.4826, the price reached the target level, but there are no signals for the movement to end. The formed buy signal is strong and confirmed, since the Chinkou Span fixated above the price graph and the price is above the Ichimoku cloud. At the moment the current target for the upside movement is 1.4961 – the first resistance level. If this level is passed the next target will be the second resistance level at 1.5115. Upside movement remains while the price is above the Kijun-sen (1.4700), if the price fixates below this line it is recommended to cut long positions. The Chinkou Span is above the price graph, which confirms the current buy signal and indicates bullish sentiment. The Bollinger bands show the continuing upside movement, the lines are diverging and directed up. The MACD is descending, which indicates current correction movement, therefore it is recommended to trade up after the MACD reverses to the upside.
Trading recommendations: Currently it is recommended to trade up with target at 1.4961 and further to 1.5115. Stop Loss should be placed below 1.4700 and stretch it up as the Kijun-sen advances. Long positions should be opened after the MACD reverses to the upside. In addition to technical image, one should take into account the fundamental data and the time of their release.
The chart annotation: Ichimoku 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 white bars in the indicators window.
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