EUR/USD (a 4-hour chart)
Forex market analysis tell us that the price works out «a dead cross» and started an upward correction. The current sell signal is still confirmed and strong as the Chinkou Span is fixed below the price chart and the price is below the Ichimoku cloud.
Now the goal of the downward movement is the second level of support 1.3398 which has been tested but has not overcome. If the price consolidates below this target the downward movement can proceed to the second level of support 1.3350.
The downward movement will be actual as long as the price is below the Kidjun-sen (1.3434). If the price consolidates above this critical line the sell signal will become weak, that fact will question the downward movement. In this case an upward movement can begin.
The Chinkou Span is below the price chart that is a confirmation of the current sell signal, indicating a bearish mood of traders.
Bollinger Bands shows are turned up that confirms an upward correction. Still we stand for short positions on the market now.
MACD is still down and indicates the downward movement. Should the indicator go up or the price bounces up from 1.3465 that could be a signal for a correction. On another hand if the price pullbacks down from this level the downward movement will be proceeded.
We advise to consider a downward trading with the first target 1.3398. When overcoming this target short position become actual to the next one 1.3350.
Stop loss is to be placed above the Kidjun-sen and when the price goes down you can move the stop loss after it.
When we get profit of 50 - 60 points stop-loss can be moved to a breakeven. You can open new orders on sale if MACD turns up or if the price rebounds from 1.3465 level.
Take-profit can be set slightly above the target levels.