Ichimoku Cloud Analysis 12.02.2020 (AUDUSD, NZDUSD, USDCAD)

AUDUSD, “Australian Dollar vs US Dollar”

rebounding from a significant resistance area. AUDUSD is trading at 0.6727 and forming a rising correction; bears have failed to fix the price below the support level. The instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may continue the correction, test the cloud’s upside border at 0.6730, and then resume moving downwards to reach 0.6575. Another signal to confirm further descending movement is the price’s rebounding from the descending channel’s upside border. However, the scenario that implies further decline may be canceled if the price breaks the cloud’s upside border and fixes above 0.6775. In this case, the pair may continue growing towards 0.6845 and form a Double Bottom reversal pattern with the target at 0.6870. After breaking the support area and fixing below 0.6655, the price may resume moving downwards .

NZDUSD, “New Zealand Dollar vs US Dollar”

NZDUSD is trading at 0.6456 and forming a strong rising correction. The instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test the cloud’s downside border at 0.6465 and then resume moving downwards to reach 0.6245. Another signal to confirm further descending movement is the price’s rebounding from the descending channel’s upside border. However, the scenario that implies further decline may be canceled if the price breaks the cloud’s upside border and fixes above 0.6525. In this case, the pair may continue growing towards 0.6605.

USDCAD, “US Dollar vs Canadian Dollar”

USDCAD is trading at 1.3280; bulls have failed to fix the price above 1.3365. The instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test the cloud’s downside border at 1.3235 and then resume moving upwards to reach 1.3435. Another signal to confirm further ascending movement is the price’s rebounding from the rising channel’s downside border. However, the scenario that implies further growth may be canceled if the price breaks the cloud’s downside border and fixes below 1.3195. In this case, the pair may continue falling towards 1.3105 and form Inverted Head & Shoulders pattern and complete its right Shoulder at 1.3050. Still, if the instrument breaks 1.3365, the pattern will be no longer valid and the price may resume moving upwards.