Ichimoku Cloud Analysis 20.08.2020 (AUDCAD, CADCHF, GBPJPY)
AUDCAD, “Australian Dollar vs Canadian Dollar”
AUDCAD is trading at 0.9479; 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 0.9495 and then resume moving downwards to reach 0.9345. Another signal in favor of further downtrend will be the formation of a Head & Shoulders reversal pattern. As we can see, the price has rebounded from the “neckline”; the target of the pattern materialization is at 0.9335. However, the bearish scenario may no longer be valid if the price breaks the cloud’s upside border and fixes above 0.9555. In this case, the pair may continue growing towards 0.9645.
CADCHF, “Canadian Dollar vs Swiss Franc”
CADCHF is trading at 0.6921; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test Tenkan-Sen and Kijun-Sen at 0.6885 and then resume moving upwards to reach 0.7035. Another signal in favor of further uptrend will be a rebound from the support level. However, the bullish scenario may no longer be valid if the price breaks the cloud’s downside border and fixes below 0.6825. In this case, the pair may continue falling towards 0.6735. To confirm further growth, the asset must break the rising channel’s upside border and fix above 0.6955. In this case, the next upside targets may be at the height equal to the channel’s width.
GBPJPY, “Great Britain Pound vs Japanese Yen”
GBPJPY is trading at 138.78; 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 139.05 and then resume moving downwards to reach 136.55. Another signal is favor of further downtrend will be the formation of a Head & Shoulders reversal pattern. However, the bearish scenario may no longer be valid if the price breaks the cloud’s upside border and fixes above 136.75. In this case, the pair may continue growing towards 137.65. To confirm further decline, the asset must break the “neckline” and fix below 138.35.
