Forex: Ichimoku Clouds. Review of XAU/USD
Let’s look at the four-hour chart. Tenkan-sen and Kijun-sen lines are getting closer and soon going to form a reversal pattern. Chinkou Span line is approaching the price chart from below, current Kumo is still descending. Aftre long fall the pair is consolidating around Tenkan-sen and Kijun-sen lines. The closest resistance level is the lower border of the cloud at 1335.74. Support level is expected to be at 1309.26 (previous lows of Chinkou Span line).
On the daily chart Tenkan-sen line is above Kijun-sen, and they are both horizontal. Chinkou Span line is crossing the price chart from below, current cloud is descending. The pair weren’t able to break through the cloud and has pulled back under the red line. Tenkan-sen (1333.72) and Kijun-sen (1306.49) lines become resistance and support levels respectively.
Support levels: 1309.26, 1306.49.
Resistance levels: 1333.72, 1335.74.
On the four-hour chart the pair is trading sideways. The signal to open long trades will be the cross of the price chart and Chinkou Span line. On the daily chart further movement of the price will be determined by the breakdown of one of the levels: Tenkan-sen or Kijun-sen.
Analyst of LiteForex Group of Companies