EUR/NZD: Ichimoku clouds 04 February 2019, 20:51

EUR/NZD: Ichimoku clouds

04 February 2019, 20:51

Scenario
Timeframe	Weekly
Recommendation	SELL
Entry Point	1.6620
Take Profit	1.6540
Stop Loss	1.6695
Key Levels	1.6590, 1.6640

Let's look at the four-hour 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 is trading between Tenkan-sen and Kijun-sen lines. The closest support level is Tenkan-sen line (1.6590). The closest resistance level is Kijun-sen line (1.6640).



On the daily chart Tenkan-sen line is below Kijun-sen, the red line is directed downwards, while the blue one remains 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 (1.6540). The closest resistance level is Tenkan-sen line (1.6695).

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 Take Profit at the level of previous minimum of Chikou Span line (1.6540) and Stop Loss at the level of Kijun-sen line (1.6695).