Without further ado, let’s begin the daily market review using Ichimoku technique:
Price released itself from the cloud (kumo), breaking through the key resistance level. It is worth to wait here for correction and re-test from the top of Kumo and resistance (which should now become a support line). Let’s look for correct position on D1 chart.
Price broke Kijun line which portends deeper correction and access to at least the lower cloud limit – this will be our first target after opening position.
Currency pair which was recently in a dynamic uptrend, currently is undergoing a revision. If the price will bounce from Kijun then with the occurrence of growth signal we can open long – provided, that Chinkou Span will be above the price.
We were not posting any Eurodollar signals for a long time. Finally, a clearer sell signal appeared, but the clouds arrangement – which is strongly increasing – may be a little bit worrying. We won’t advise looking for opportunities on this pair. Better switch to another one, where the situation is clearer.
Yesterday, we wrote about breaking out of the Kumo. It is worth to wait for a re-test here. Just like now – if the price goes back and comes out again at the bottom, it will be a signal to open a short position with a stop loss above the present maximum. This gives a much better profit-to-risk ratio than a position opened after the first release from Kumo.
Clear sell signal on Cable. Once again we should wait for a successful re-test of the Kumo bottom and just then think about short positions. The price may go up – even in a cloud – and consolidate there. Another breakout will be a signal with a lower SL.
If you want to learn more about Ichimoku technique we invite you to watch one of Marcin Wenus webinars about Japanese way of trading: https://www.youtube.com/watch?v=QOLgKH15LGw