On the four-hour chart Tenkan-sen line has crossed Kijun-sen from above and then again from below. Chinkou Span line is approaching the price chart from above, current Kumo is ascending. This week the pair has been trading within a wide range of 120 points, and now the price is above Tenkan-Sen (1.6192) and Kijun-Sen (1.6185) lines, which play the role of support. The next resistance level will be one of the previous highs of the Chinkou Span line (1.6240).
Let’s look at the daily chart. Tenkan-sen and Kijun-sen lines have merged above the cloud and they are both horizontal, indicating the sideways movement of the price. Chinkou Span is above the price chart from above, current cloud is ascending. The closest support level is Kijun-Sen line at 1.6077. One of the previous maximum of Chinkou Span line is expected to be a resistance level at 1.6278.
Support levels: 1.6192, 1.6185, 1.6077.
Resistance levels: 1.6240, 1.6278.
Both charts show us a slowdown of the upward trend. However the signal to open short trades will appear after the breakdown of support level 1.6077, followed by confirmation signal from Chinkou Span (the cross of the price chart and the green line). Meanwhile targets for long positions are 1.6240 and 1.6278.
Analyst of LiteForex Group of Companies