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Forex: Ichimoku Clouds. Review of NZD/USD

NZD/USD, H4

Let’s look at the four-hour chart. Tenkan-sen line is below Kijun-sen, both lines are horizontal. Chinkou Span line is below the price chart; current cloud is descending. The pair has broken down the cloud and is consolidating below it. Tenkan-sen line is the closest resistance (0.8287) level. One of the previous minimums of Chinkou Span line is expected to be a support level at 0.8257.

NZD/USD, D1

On the daily chart Tenkan-sen line is above Kijun-sen, they are both horizontal. Chinkou Span line is following the price chart; current cloud is ascending. The pair is trading within the cloud and between Tenkan-sen and Kijun-sen lines. Borders of the cloud have become support (0.8257) and resistance (0.8296) levels.

Key levels

Support levels: 0.8257.

Resistance levels: 0.8287, 0.8296.

Trading tips

On the four-hour chart we’ve got a signal to sell, however, on the daily chart the pair is within the cloud. Target for the short positions is 0.8257.

Anastasiya Glushkova

Analyst of LiteForex Group of Companies

Monday, 24 Feb, 2014 / 9:25