CAD/CHF: Ichimoku clouds
Let's look at the four-hour chart. Tenkan-sen line is above Kijun-sen, the red line is directed downwards, while the blue one remains horizontal. Confirmative line Chikou Span is above the price chart, current cloud is descending. The instrument is trading between Tenkan-sen and Kijun-sen lines. The closest support level is Kijun-sen line (0.7464). The closest resistance level is Tenkan-sen line (0.7470).
On the daily chart Tenkan-sen line is below Kijun-sen, the lines are horizontal . Confirmative line Chikou Span is below the price chart, current cloud is descending. The instrument has broken down the cloud and slowed down its fall. One of the previous minimums of Chikou Span line is expected to be a support level (0.7422). The closest resistance level is the upper border of the cloud (0.7498).
On the four-hour chart we can see a correction of the downward movement. On the daily chart the instrument has broken down the cloud, forming a strong signal to sell. It is recommended to open short positions at current price with the target at the level of previous minimum of Chikou Span line (0.7422) and Stop Loss at the lower border of the cloud (0.7498).