• Add
    Company

Forex: Ichimoku Clouds. Review of NZD/USD

LiteForex

NZD/USD, H4

On 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 going to reverse from ascending to descending. The pair has broken down the cloud and is still falling. The lower border of the cloud is a resistance level (0.8628). One of the previous minimums of Chinkou Span line is expected to be a support level at 0.8543.

NZD/USD, D1

Let’s look at the daily chart. Tenkan-sen line is above Kijun-sen, red line is directed upwards while the blue one remains horizontal. Chinkou Span line is approaching the price chart from above; current cloud is ascending. The has been corrected to the key level of Kijun-sen line (0.8592). The next obstacle for the price on its way down will be the upper border of the cloud at 0.8347.

Key levels

Support levels: 0.8543, 0.8347.

Resistance levels: 0.8592, 0.8628.

Trading tips

On the four-hour chart the breakdown of the cloud is a strong signal to sell. Daily chart will confirm trend reversal as soon as Chinkou Span crosses the price chart. Targets for the short positions are 0.8543 and 0.8347.

Anastasiya Glushkova
Analyst of LiteForex Group of Companies

Source: https://www.liteforex.com/
Disclaimer
!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|} !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}