Forex: Ichimoku Clouds. Review of AUD/USD
AUD/USD, H4
Let’s look at the four-hour chart. Tenkan-sen line is above Kijun-sen, they are both directed upwards.. Chinkou Span line is above the price chart; current cloud is still descending. The pair has broken through the cloud from below, though the price can stick around flat Kumo top until the end of the week. The closest support level is Senkou Span B line at 0.9406. One of the previous maximums of Chinkou Span line is expected to be a resistance level at 0.9465.
AUD/USD, D1
On the daily chart Tenkan-sen is below Kijun-sen and they are both horizontal. Chinkou Span line is approaching the price chart from below, Senkou Span A and Senkou Span B lines have merged before the cloud reversal. Under the pressure of the Dead Cross the price has entered the cloud, but weren’t able to break it down, so the pair has returned above the red line. The closest support level is the upper border of the cloud at 0.9384. The next obstacle for the price on its way up will be Kijun-sen line at 0.9513.
Key levels
Support levels: 0.9406, 0.9384.
Resistance levels: 0.9465, 0.9513.
Trading tips
On the four-hour chart the pair has broken the cloud from below, giving a strong signal to open long trades with targets at 0.9465. On the daily chart the price is following the upper border of the cloud. Confirmation signal to buy will be a cross of the price chart and Chinkou Span line of the breakdown of resistance level of Kijun-sen.
Anastasiya Glushkova
Analyst of LiteForex Group of Companies
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EUR/USD: general analysis
Current trend
The Unified European currency continues to strengthen gradually against the American dollar. On the four-hour chart the price is above the moving average with the period 50 confirming uptrend.
Euro is also supported by fundamental data. The yield of 10-year Italian bonds has reached the level of 4.04% for the first time and disagreement in the party of Silvio Berluskoni shall strengthen the position of the government. However, investors’ sentiment can be clouded by the strike of the transport workers in Portugal, as they are firmly set against reduction in wages and the increase of the work hours and possible privatization of the public transport. It is unlikely that the workers can get more favourable terms as country’s budget will be approved at the end of November and government is not planning to make major amendments.
ZEW business sentiment index in Germany and Eurozone will become known today. According to the forecast this index shall increase, which will support European currency.
Support and resistance
The nearest resistance level on the four-hour chart is the previous highs of price at the level of 1.3537. Support level will be one of the local lows at 1.3441.
Trading tips
It is recommended to open long positions above the level of 1.3537 with the target of 1.3600 and stop-loss at 1.3512.
Dmitry Agurbash
Analyst of LiteForex Group of Companies
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GBP/USD: the Pound is likely to strengthen
Current trend
The pair GBP/USD grew up at the beginning of this week, reaching the four-week highs of 1.6153. However disappointing data on European payment balance has corrected the Pound downward. At the moment the pair is trading in the narrow range of thirty points (1.6095-1.6125). Investors are waiting for the publication of economic sentiment indices in business sectors of Germany and EU. According to preliminary estimates the indices can rise up to the level of 54.0 and 63.1 points respectively, which will put significant pressure on the American dollar.
Support and resistance
Currently the pair is trading near the medium line of “Bollinger bands” indicator (1.6090). In the near future the price may go up to the level of 1.6150 (upper moving average of “Bollinger bands”) and probably to 1.6190. If ZEW index disappoints investors, the pair will break down support level of 1.6090 and fall to 1.6020.
On the four-hour chart technical indicators give mixed signals. Bollinger bands are directed upward. Stochastic lines are crossing. They are directed upward, giving a buy signal. MACD histogram is still in the positive zone; however its volumes are decreasing.
Trading tips
In the current circumstances it makes sense to open long positions with profit taking at the level of 1.6150. It also advisable to place pending sell orders at the levels of 1.6150 and 1.6190
Dmitriy Zolotov
Analyst of LiteForex Group of Companies
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