EUR/USD (a 4-hour chart)
Daily EUR/USD Ichimoku chart is showing a down trend movement. At the present moment it is not clear whether this is just a correction or a change of the course. The price worked out a resistance level 1.3585 and consolidated below it. Now the pair is trying the level – 1.3465.
The current buy signal is confirmed and weak as the Chinkou Span entrenched above the price chart and the price is below the Kijun-sen (1.3585).
If the pair continues going up the first target will be at 1.3585. Should the price overcome this level it should go for the next one – 1.3762.
If the correction enters the Ichimoku cloud and crosses it that fact can question the further uptrend. In this case we can expect a new downward trend formation.
Still the uptrend will be strong as long as the price is above the Ichimoku cloud. If the price consolidates below that line that shall weaken the current signal to buy.
The Chinkou Span is above the price chart confirming a bearish signal.
Bollinger Bands are horizontal showing a side movement.
MACD is going down indicating that correction is in the process. Should MACD turns up that will be a signal for a renewal of an upward movement. If the price pullbacks from 1.3465 level that could also trigger the upward trend.
We think that the price will continue going up, the bearish trend will be on for a while. If the pair goes up we suggest buying with the first target as 1.3585. Should the price overcome this resistance level successfully it should continue going to the next level which is 1.3762.
If you go long we advise you to place Stop Loss below the Kijun-Sen (1.3323). As the price goes up you can move and Stop Loss after it. When gaining profits of 50 - 60 points stop loss can be moved to a breakeven zone.
Our recommendation is to place Take Profit slightly below the target levels – 1.3570 and 1.3750.
When opening orders please be advised to consider fundamental news.