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Writer's pictureCharles David

EURUSD: Ichimoku clouds


Scenario


Timeframe - Intraday

Recommendation - SELL STOP

Entry Point - 1.1220

Take Profit - 1.1110

Stop Loss - 1.1400

Key Levels - 1.1250, 1.1275

Alternative scenario Recommendation - BUY STOP

Entry Point - 1.1400

Take Profit - 1.1535

Stop Loss - 1.1220

Key Levels - 1.1250, 1.1275


Let's look at the four-hour chart. Tenkan-sen line is above Kijun-sen, the lines are horizontal . Confirmative line Chikou Span is above the price chart, current cloud is going to reverse from descending to ascending. The instrument has entered the cloud. The closest support level is the lower border of the cloud (1.1250). The closest resistance level is the lower border of the cloud (1.1275)



On the daily chart Tenkan-sen and Kijun-sen lines have merged, the lines are horizontal . Confirmative line Chikou Span is approaching the price chart from below, current cloud is going to reverse from ascending to descending. The instrument has entered the cloud. The closest support level is the lower border of the cloud (1.1220). The closest resistance level is the lower border of the cloud (1.1400)

On the both charts the instrument is still falling. 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 1.1220, with Take Profit at 1.1110 and Stop Loss at 1.1400; buy at the level of 1.1400, with Take Profit at 1.1535 and Stop Loss at 1.1220



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