Let’s look at the four-hour chart. Tenkan-sen and Kijun-sen lines have merged above the cloud and stay horizontal, indicating sideways movement. Chinkou Span line is above the price chart; current cloud has reversed from descending to ascending. Kijun-sen is the closets support level (0.7410). One of the previous maximums of Chinkou Span line is expected to be a resistance level (0.7500).

Forex: Ichimoku Clouds. Review of NZD/USD


On the daily chart Tenkan-sen is below Kijun-sen, they are both horizontal. Chinkou Span line is following the price chart; current cloud is descending. The closest resistance level is the upper border of the cloud  (0.7543).  Kijun-sen will be a support level at 0.7401.

Forex: Ichimoku Clouds. Review of NZD/USD

Key levels

Support levels: 0.7410, 0.7401.

Resistance levels: 0.7500, 0.7543.

Trading tips

On the four-hour chart the pair has broken through the cloud and continues to rise, however, on the daily chart the pair is trading within the cloud. Short-term long positions can be opened at current price with targets at 0.7500. Long-term buys should be placed above 0.7543 with targets at 0.7700-0.7800.

Materials published on this page are provided by LiteForex for informational purposes only and should not be construed as investment advice or advice for the purposes of 2004/39/EC Directive. In addition, these materials have not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the further distribution of investment research.

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