In today’s weekly Ichimoku review we will take a closer look at AUD/USD, EUR/JPY, GBP/NZD and something more exotic – USD/ZAR. You can read more about Ichimoku Kinko Hyo trading technique here.
We only use daily charts and look for signal confirmation on W1. Why D1? Because they are the most important TF – long-term decision are usually based on daily bars. They also allow to play with greater calmness and make investment decisions in longer period of time. Analysis on daily charts do not get old so fast.
AUD/USD
There is ongoing downward correction on Aussie and it seems that is too early to get over. On the W1 chart, the price is still in Kumo (cloud) and strong technical support may be drawn far away from current levels (0.9200) which coincides with the Kijun line (blue). If the price sill rises and raches the cloud lower limit (and Kijun line on D1) we may consider short positioning.
EUR/JPY
Really strong slippages on this cross. Weekly chart price is inside the Kumo (which is neutral) and on D1 below it. Recently pair gave sell signal, after bouncing from Kijun line. If the next daily candle is downward it will also show, that blue line works. It is worth to consider short positioning with TP from W1 – which gives event 400 pips.
GBP/NZD
Correction losses its momentum. At W1 chart price rebounds from the Kijun line, at D1 from the upper limit of the cloud. Only one thing here can be worrying – close resistance (blue Ichimoku line) on the daily chart. Playing with SL below the Thursday’s minimum and target below the maximum from last week brings 4:1 RR ratio.
USD/ZAR
And something more exotic. African Rand has a good rate, so short positions will have excellent swaps. Price broke the cloud from below last Thursday, but moved back the next day. If the next breakout occurs, then we will open short position with SL above the last maximum.
