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Forex: Ichimoku Clouds. Review of XAU/USD

LiteForex

XAU/USD, H4

Let’s look at the four-hour chart. Tenkan-sen line has crossed Kijun-sen from above, forming Dead Cross reversal pattern. Chinkou Span line has crossed the price chart from above, current Kumo-cloud has reversed from ascending to descending. Under the pressure of the Cross the pair has broken down the cloud and is trying to consolidate below it. The closest resistance level is Tenkan-sen line at 1237.25. One of the previous minimums of Chinkou Span line is expected to be a support level at 1233.56.

XAU/USD, D1

On the daily chart we can see an opposite situation: Tenkan-sen line has crossed Kijun-sen from below under the cloud, forming Golden Cross reversal pattern However, the upward impetus wasn’t enough to break through the lower border of the cloud, and the pair has been corrected under the red line. Chinkou Span line is following the price chart, current cloud is still descending. Tenkan-sen (1245.99) and Kijun-sen (1221.59) lines have become resistance and support levels respectively.

Key levels

Support levels: 1233.56, 1221.59.

Resistance levels: 1237.25, 1245.99.

Trading tips

On the four-hour chart the price has broken down the cloud, but can’t consolidate below it. On the daily chart further movement of the price will be determined by the breakdown of one of the levels: Tenkan-sen (1245.99) or Kijun-sen (1221.59).

Anastasiya Glushkova

Analyst of LiteForex Group of Companies

Source: https://www.liteforex.com/
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