AUD/CAD: Ichimoku clouds



Let's look at the four-hour chart. Tenkan-sen and Kijun-sen lines have merged, both lines are directed upwards. Confirmative line Chikou Span is above the price chart, current cloud is ascending. The instrument is trading above Tenkan-sen and Kijun-sen lines; the Bullish trend is still strong. Merged Tenkan-sen and Kijun-sen lines have become a strong support level (0.9038). One of the previous maximums of Chikou Span line is expected to be a resistance level (0.9079).




On the daily chart Tenkan-sen line is below Kijun-sen, both lines are directed upwards. Confirmative line Chikou Span has crossed the price chart from below, current cloud is descending. The instrument is trading around upper border of the cloud. The closest support level is Tenkan-sen line (0.8995). The closest resistance level is the lower border of the cloud (0.9066).


It is recommended to open long positions at current price with the target at the level of previous maximum of Chikou Span line (0.9140) and Stop Loss at the upper border of the cloud (0.9045).

Scenario

  • Timeframe

    Weekly

  • Recommendation

    BUY

  • Entry Point

    0.9071

  • Take Profit

    0.9140

  • Stop Loss

    0.9045

  • Key Levels

    0.8929, 0.8967, 0.9000, 0.9030, 0.9047, 0.9068, 0.9104, 0.9132.