Let’s look at the four-hour chart. Tenkan-sen line is above Kijun-sen, the red line is directed downwards, while the blue one remains horizontal. Chinkou Span line has crossed the price chart from above; current Kumo-cloud has reversed from descending to ascending. The pair has entered the cloud and is trying the break down its lower border. The closest resistance level is Kijun-sen line (0.9656). the next obstacle for the price on its way down will be one of the previous minimums of Chinkou Span line at 0.9502.
On the daily chart Tenkan-sen line has crossed Kijun-sen from above, indicating the beginning of trend reversal. Chinkou Span line is above the price chart; current Kumo-cloud is ascending. The pair has been corrected under Kijun-sen (0.9789) and Tenkan-sen (0.9650) lines. Upper border of the cloud will be a support level at 0.9385.
Support levels: 0.9502, 0.9385.
Resistance levels: 0.9650, 0.9656, 0.9808.
On the four-hour chart the pair is trying to consolidate below the cloud, while on the daily one we’ve got a strong signal to sell. Targets for the sell positions are 0.9502 and 0.9385.
Analytics by Liteforex Investments LimitedPublication source