Let’s look at the four-hour chart. Tenkan-sen line is below Kijun-sen, they are both directed downwards. Chinkou Span line is below the price chart; current cloud is still ascending, but can soon reverse. The pair has broken down the cloud and is trying to consolidate below it. The lower border of the cloud is the closest resistance level (0.7485). The next obstacle for the price on its way down will be one of the previous maximums of Chinkou Span line (0.7291).

Forex: Ichimoku Clouds. Review of NZD/USD


On the daily chart Tenkan-sen is above Kijun-sen, the red line is directed upwards, while the blue one remains horizontal. Chinkou Span line has crossed the price chart from above; current cloud has reversed from descending to ascending. The pair has re-entered the cloud and Is trading at its lower border (0.7456). The next support level will be Kijun-sen line (0.7443). The upper border of the cloud is going to be a resistance level (0.7532).

Forex: Ichimoku Clouds. Review of NZD/USD

Key levels

Support levels: 0.7443, 0.7291.

Resistance levels: 0.7485, 0.7532.

Trading tips

On the four-hour chart we’ve got a signals to sell, on the daily one the price is trading within the cloud, but can soon break it down. Targets for the short positions are around 0.7291.

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