14.05.201015:00 Forex Analysis & Reviews: Technical analysis and trading recommendations of the EUR / USD pair for May 14

4- hour timeframe

Overview:

 For the moment, a sell signal targeted to 1,2159 has been formed and it still keeps developing. The signal is not confirmed, but strong, as the price is found below the Ishimoku cloud and the Chinkou span has strengthened lower than the price curve. So, at present the mid-aim is the first support level at 1,2392, and the following decline depends on whether the bands will start diverging if the price reaches the line. It should also be mentioned that the previous low is renewed and so the possibility of the falling continuation is high. At least, there are no visible signs of the recoil for now. If the price fixates above the Kijun-Sen a sell signal will be considered weak. The Chinkou span is positioned above the price curve, which demonstrates a descending tendency. The Bollinger bands show the sideways movement as the lines are not diverging and are directed to the sides, this denotes the sideways movement. The MACD is uprising denoting the current growth.

Trading recommendations:

Currently it is recommended to wait for the moment when the price hits the lower Bollinger band. In case it is broken, the downfalling movement targeted to 1,2392 will continue (the first support level). In case of the rebound we will face a flat continuation.

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.