EUR/NZD: Ichimoku clouds 10 January 2019, 10:22

EUR/NZD: Ichimoku clouds

10 January 2019, 10:22

Scenario
Timeframe	Weekly
Recommendation	BUY STOP
Entry Point	1.7133
Take Profit	1.7350
Stop Loss	1.7020
Key Levels	1.7350, 1.7133, 1.6900, 1.6700

Alternative scenario
Recommendation	SELL STOP
Entry Point	1.6900
Take Profit	1.6700
Stop Loss	1.7100
Key Levels	1.7350, 1.7133, 1.6900, 1.6700

Let's look at the four-hour chart. Tenkan-sen line is crossing Kijun-sen from above, the blue line is directed downwards, while the red one remains horizontal. Confirmative line Chikou Span is approaching the price chart from below, current cloud is going to reverse from ascending to descending. The instrument is trading above Tenkan-sen and Kijun-sen lines; the Bullish trend is still strong. The closest support level is Tenkan-sen line (1.6970). The closest resistance level is the lower border of the cloud (1.7066).



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 descending. The instrument has entered the cloud. One of the previous minimums of Chikou Span line is expected to be a support level (1.6900). The closest resistance level is the lower border of the cloud (1.7133).

On the four-hour chart we can see a correction of the downward movement. 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 1.6900, with Take Profit at 1.6700 and Stop Loss at 1.7100; buy at the level of 1.7133, with Take Profit at 1.7350 and Stop Loss at 1.7020.