AUD/CAD: Ichimoku clouds 21 May 2018, 07:54

AUD/CAD: Ichimoku clouds

21 May 2018, 07:54

Scenario
Timeframe	Weekly
Recommendation	BUY STOP
Entry Point	0.9710
Take Profit	0.9855
Stop Loss	0.9655
Key Levels	0.9579, 0.9623, 0.9658, 0.9703, 0.9734, 0.9763, 0.9828, 0.9858.

Let's look at the four-hour chart. Tenkan-sen line has crossed Kijun-sen from below, the red line is directed upwards, while the blue one remains horizontal. Confirmative line Chikou Span is above the price chart, current cloud has reversed from descending to ascending. The instrument is trading above Tenkan-sen and Kijun-sen lines; the Bullish trend is still strong. One of the previous minimums of Chikou Span line is expected to be a support level (0.9668). One of the previous maximums of Chikou Span line is expected to be a resistance level (0.9689).



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 is trading around lower border of the cloud. The closest support level is the lower border of the cloud (0.9661). The closest resistance level is Kijun-sen line (0.9703).

On the four-hour chart we can see a correction of the upward movement. On the daily chart we can see a correction of the upward movement. Long trades can be opened as soon as we get a confirmative signal from Chikou Span line (the line should cross the price chart). Presumable entry point is 0.9710, Take Profit – 0.9855, Stop Loss – 0.9655.