Let’s look at the four-hour chart. Tenkan-sen line is above Kijun-sen, they are both horizontal. Chinkou Span line is above the price chart; current cloud is ascending. The pair has entered the cloud, borders of which have become support (0.7358) and resistance (0.7419) levels.

Forex: Ichimoku Clouds. Review of NZD/USD


On the daily chart Tenkan-sen has crossed Kijun-sen from above, indicating new wave of downward movement. Chinkou Span line is following the price chart; current cloud is descending. Flat Kijun-sen is still a strong resistance at (0.7401). The closest support level is one of the previous minimums of Chinkou Span line  (0.7277).

Forex: Ichimoku Clouds. Review of NZD/USD

Key levels

Support levels: 0.7358, 0.7277.

Resistance levels: 0.7401, 0.7419.

Trading tips

On the four-hour chart the pair is trading within the cloud, but on the daily one we’ve got a signal to sell (a cross between Tenkan-sen and Kijun-sen lines). It is recommended to place pending orders under 4-hour cloud, at 0.7340 with targets at 0.7277.

The material published on this page is produced by LiteForex and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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