Let’s look at the four-hour chart. Tenkan-sen line is above Kijun-sen, they are both directed upwards. Chinkou Span line is approaching the price chart from above. Current cloud has recently reversed from descending to ascending. The pair is trading within the cloud, borders of which become support (1.1346) and resistance (1.1402) levels.
On the daily chart Tenkan-sen line is below Kijun-sen, they are both horizontal. Chinkou Span line is below the price chart, current cloud is descending. After long fall, the pair is being corrected to the level of Tenkan-sen line. The closest resistance level is Kijun-sen line (1.1471). One of the previous minimums of Chinkou Span line is expected to be a support level at 1.1203.
Support levels: 1.1346, 1.1203.
Resistance levels: 1.1402, 1.1471.
On the four-hour chart the pair is trading within the cloud, on the daily one we can see a correction of the downward movement. Pending sell orders can be placed below the lower border of the cloud (1.1346) with target at 1.1203.
Analyst at LiteForex Investments Limited