Forex: Ichimoku Clouds. Review of XAU/USD
XAU/USD, H4
Let’s look at the four-hour chart. Tenkan-sen line has crossed Kijun-sen line from below under the cloud, forming Golden Cross pattern. However upward impetus wasn’t enough and the price is still under Tenkan-sen line (1328.988). Though Kijun-sen line (1322.37) keeps the pair from falling. Chinkou Span line is approaching the price chart from below, current Kumo is descending.
XAU/USD, D1
On the daily chart Tenkan-sen line is below Kijun-sen, and they have been horizontal since the beginning of the week. Chinkou Span line is below the price chart, current cloud has reversed from ascending to descending. This Monday the price has entered the cloud and been flat ever since. Lower border of the cloud is a support level at 1387.39, Tenkan-sen line remains resistance level at 1333.19.
Key levels
Support levels: 1322.37, 1387.39.
Resistance levels: 1328.988, 1333.19.
Trading tips
On the four-hour chart further movement of the price will be determined by the breakdown of one of the levels: Tenkan-sen or Kijun-sen. On the daily chart the price has entered the cloud, we suggest to avoid new long-term positions.
Anastasiya Glushkova
Analyst of LiteForex Group of Companies