Central banking day! Firstly BoJ, now BoE and ECB in couple of hours. Likelihood of market volatility is high – it is a great chance to find interesting setups and catch big movements. Let’s start our daily Forex Market Ichimoku Outlook:
Cross was giving a purchase signal, which I have mentioned few times. Now it looks , that a new opportunity to enter long positions is forming. Price fell in the vicinity of Kijun line, clearly respecting and rebounding from it. If session ends here or on the higher level we may consider going long. Only weekly chart can be worrying – price is not able to break above the cloud. If it escapes, it will indicate a broader uptrend.
Price left Kumo yesterday and it may be an opportunity to open short positions. However, potential SL is too big – so we would need a correction, which will rebound from the cloud. Then – entering short positions with SL just above last high will be a good idea.
We wrote about gold recently and its rebound from Kumo and Kijun. It was a great opportunity to open shorts and I hope, that you were able to use this signal. Current profit should be now three times bigger than forecasted loss. It would be good to protect part of the earning and the rest of position can target minimum from June 4.