Forex: Ichimoku Clouds. Review of XAU/USD
Let’s look at the four-hour chart. Tenkan-sen line is below Kijun-sen, they are both horizontal. Chinkou Span line is below the price chart; current Kumo-cloud is descending. After a strong fall the pair has been corrected between Tenkan-sen and Kijun-sen lines, which have become support (1267.11) and resistance (1276.07) levels respectively.
On the daily chart Tenkan-sen line is also below Kijun-sen, and both lines are horizontal. However, the correction hasn't reached the red line. Chinkou Span line is below the price chart, current cloud is descending. The closest resistance level is Tenkan-sen line (1278.64). One of the previous minimums of Chinkou Span line is expected to be a support level at 1270.26.
Support levels: 1267.11, 1270.26.
Resistance levels: 1276.07, 1278.64.
On the four-hour chart the pair is in the deep correction, however it is too early to speak about trend reversal. Daily chart confirm the development of the downward trend. Targets for the short positions are 1267.11 and 1270.26.
Analyst of LiteForex Investments Limited