Let’s look at the four-hour chart. Tenkan-sen line has crossed Kijun-sen from below under the cloud, forming trend reversal pattern. Chinkou Span line is below the price chart; current Kumo-cloud is descending. With the help of the Bullish impetus the pair has entered the cloud, upper border of which becomes resistance level (1.2416). Tenkan-sen line (1.2369) is the closest support level.
On the daily chart Tenkan-sen line is below Kijun-sen, however the red line is directed downwards, while the blue one remains horizontal. Chinkou Span line is below the price chart, current cloud is descending. The pair has been corrected to the Tenkan-sen line once again, and Kijun-sen becomes resistance level (1.2422). One of the previous minimums of Chinkou Span line is expected to be a support level (1.2230).
Support levels: 1.2369, 1.2230.
Resistance levels: 1.2416, 1.2422.
On the four-hour chart we can see trend reversal pattern, however the pair is still trading within the cloud. Long positions should be placed above 1.2416 with targets at 1.2480.
Analyst of LiteForex Investments Limited