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Forex: Ichimoku Clouds. Review of AUD/USD

AUD/USD, H4

Let’s look at the four-hour chart. Tenkan-sen line is above Kijun-sen, the red line is directed downwards, while the blue one remains horizontal. Chinkou Span line is below the price chart from below; current cloud has reversed from ascending to descending. The pair has entered the cloud and is following its upper border. Tenkan-sen (0.8979) and Kijun-sen (0.9008) lines have become support and resistance levels respectively.

AUD/USD, D1

On the daily chart Tenkan-sen line has crossed Kijun-sen from below, forming Golden Cross reversal pattern. Under the pressure of the Cross the pair has entered the cloud. Chinkou Span line is above the price chart; current cloud has reversed from descending to ascending. Senkou Span A (0.8951) line is the closest support level. The next obstacle for the price on its way up will be the upper border of the cloud (0.9152).

Key levels

Support levels: 0.8979, 0.8951.

Resistance levels: 0.9008, 0.9152.

Trading tips

On the both charts the price has entered the cloud; it is not recommended to open new trades at current price. Pending buy orders can be placed above 0.9008 with targets at 0.9152.

Anastasiya Glushkova

Analyst of LiteForex Group of Companies

Friday, 21 Feb, 2014 / 9:31