Forex: Ichimoku Clouds. Review of XAU/USD
XAU/USD, H4
Let’s look at the four-hour chart. Tenkan-sen line has crossed Kijun-sen from above under the cloud, confirming new wave of downward movement. Chinkou Span line is below the price chart, current Kumo is still descending. The closest resistance level is Tenkan-sen line at 1258.37. Support level is expected to be at 1216.00 (previous lows of Chinkou Span line).
XAU/USD, D1
On the daily chart Tenkan-sen line is below Kijun-sen, the red line is directed downwards, while the blue one remains horizontal. Chinkou Span line has crossed the price chart from above, current cloud is descending. Tenkan-sen line (1267.34) remains a resistance level. Support level is expected to be at 1222.44 (previous lows of Chinkou Span line).
Key levels
Support levels: 1222.44, 1216.00.
Resistance levels: 1258.37, 1267.34.
Trading tips
Charts of the both timeframes indicate a new wave of the “bearish” movement. Targets for the short positions are 1222.44 and 1216.00.
Anastasiya Glushkova
Analyst of LiteForex Group of Companies
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EUR/USD: general analysis
Current trend
Yesterday European currency weakened against the USD and the pair EUR/USD fell to the lows of the week. At the beginning of the week situation in the market was the opposite. The USD was falling after the declaration of the US Fed chairman about continuation of the soft monetary policy. However, lowering of the interest rate by ECB caused the decline in Euro. Additional support to the USD was provided by the publication of the minutes of the last meeting of the US Fed. Monetary authorities of the USA announced their decision to tighten monetary policy despite Bernanke’s ideas.
Support and resistance
The nearest support level on the daily chart is 1.3414 (yesterday’s lows and moving average with the period 100). Next support is the level of 78.6% (1.3375) Fibonacci retracement. Resistance levels are 1.3440 and 1.3485 (moving average line with the period 55). MACD histogram on the daily chart is below the zero level; volumes are slowly increasing, which suggests that downward movement will continue.
Trading tips
A lot of economic news will become known today, which can affect further movement in the pair, therefore be careful about the deals. Short positions are recommended after breakdown of the level of 1.3410 with partial profit taking at the level of 1.3375 and shifting positions into the breakeven zone. Final target is the level of 1.3300.
Andrey Cherkas
Analyst of LiteForex Group of Companies
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GBP/USD: analysis and forecast
Current trend
Yesterday afternoon quotes of the currency pair GBP/USD fell to 1.6070 in respond to the publication of the minutes of the US Fed’s last meeting. Members of the Open Market Committee confirmed recovery of the American economy and considered a possibility to curtail bond purchase program in the near future; however they decided to postpone this measure until further improvements in the labour market.
Today statistics on net borrowings in the public sector of Great Britain will become known. According to the forecast budget deficit will reduce reaching 4.8 billion pounds, which will support the British currency.
Support and resistance
At the moment the pair is experiencing correction. During the day the price is likely to reach the level of 1.6115 (medium line of “Bollinger bands” indicator. If this level is broken down the pair may go up to 1.6150 (top moving average of “Bollinger bands”). On the four-hour chart technical indicators give mixed signals. MACD histogram is in the positive zone; its volumes are decreasing. Stochastic lines are in the oversold zone shifting to the upward movement.
Trading tips
In the current conditions it makes sense to open long positions with the target of 1.6115. Pending orders to buy can be placed at the same level with profit taking near 16150.
Dmitriy Zolotov
Analyst of LiteForex Group of Companies
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