Let’s look at the four-hour chart. Tenkan-sen line is below Kijun-sen, the red line is directed downwards, while the blue one remains horizontal. Chinkou Span line is below the price chart; current Kumo-cloud is descending. The pair has broken down the cloud and is still moving down, towards the level of 1.2410. Tenkan-sen (1.2502) line is the closest resistance level.

Forex: Ichimoku Clouds. Review of USD/CAD


On the daily chart Tenkan-sen line has crossed Kijun-sen from above, however both lines are horizontal now. Chinkou Span line is crossing the price chart from above; current Kumo-cloud is going to reverse from ascending to descending. The pair has entered the cloud and is moving towards its lower border (1.2181). The closest support level is the upper border of the cloud at 1.2550.

Forex: Ichimoku Clouds. Review of USD/CAD

Key levels

Support levels: 1.2410, 1.2181.

Resistance levels: 1.2502, 1.2550.

Trading tips

On the four-hour chart we’ve got a signal to sell, but on the daily one the pair is trading within the cloud. However, short trades still can be opened at current price with targets at 1.2410.

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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