CAD/CHF: Ichimoku clouds 22 May 2018, 08:25

CAD/CHF: Ichimoku clouds

22 May 2018, 08:25

Scenario
Timeframe	Intraday
Recommendation	BUY STOP
Entry Point	0.7805
Take Profit	0.7855
Stop Loss	0.7784
Key Levels	0.7726 0.7784 0.7805 0.7855

Alternative scenario
Recommendation	SELL STOP
Entry Point	0.7784
Take Profit	0.7735
Stop Loss	0.7805
Key Levels

Let's look at the four-hour chart. Tenkan-sen line is below Kijun-sen, the red line is directed upwards, while the blue one remains horizontal. Confirmative line Chikou Span is above the price chart, current cloud is descending. The instrument has entered the cloud. The closest support level is the lower border of the cloud (0.7784). The closest resistance level is the lower border of the cloud (0.7805).



On the daily chart Tenkan-sen line is above Kijun-sen, the lines are horizontal . 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. The closest support level is Kijun-sen line (0.7726). One of the previous maximums of Chikou Span line is expected to be a resistance level (0.7855).

On the four-hour chart the instrument is trading within the cloud. On the daily chart the Bullish trend is still strong. It is not recommended to open positions at current price. Pending orders should be placed at the cloud’s borders: sell at the level of 0.7784, with Take Profit at 0.7735 and Stop Loss at 0.7805; buy at the level of 0.7805, with Take Profit at 0.7855 and Stop Loss at 0.7784.