On the four-hour chart Tenkan-sen line has crossed Kijun-sen from above, forming a reversal pattern. However, the downward impetus hasn’t been enough, and the pair is still above Tenkan-sen line, which becomes a support level at 0.8947. Chinkou Span line is approaching the price chart from above; current cloud is ascending. One of the previous maximums of the Chinkou Span line is going to be a resistance level at 0.8990.
Let’s look at the daily chart. Tenkan-sen line is below Kijun-sen, they are both horizontal. Chinkou Span is below the price chart; current cloud is still descending. After a long fall the pair has been corrected above Tenkan-sen line (0.8916), which has become a support level now. The closest resistance level is Kijun-sen line at 0.9011.
Support levels: 0.8947, 0.8916.
Resistance levels: 0.8990, 0.9011.
On the four-hour chart short positions can be opened after the cross of Chinkou Span line and the price chart. Daily chart shows us a correction of the descending movement, the targets for the sell positions are around 0.8916.
Analyst of LiteForex Group of Companies