Forex: Ichimoku Clouds. Review of XAU/USD
XAU/USD, H4
Let’s look at the four-hour chart. Tenkan-sen line is below Kijun-sen, and they are both horizontal. Chinkou Span line is approaching the price chart from below, current Kumo is still descending. After long fall the pair has been corrected above Tenkan-sen and Kijun-sen lines, the latter has become a support level at 1251.78. The next obstacle for the price on its way up will be the lower border of the cloud at 1263.48.
XAU/USD, D1
On the daily chart Tenkan-sen line is also below Kijun-sen, however the uprising correction hasn’t reached the red line. Chinkou Span line is below the price chart, current cloud is descending. Tenkan-sen line (1260.76) remains a resistance level. Support level is expected to be at 1222.44 (previous lows of Chinkou Span line).
Key levels
Support levels: 1251.78, 1222.44.
Resistance levels: 1260.76, 1263.48.
Trading tips
On the four-hour chart the signal to open short positions will appear after the cross of price chart and Chinkou Span line. However, daily chart doesn’t confirm the reversal of the trend. Targets for the long positions are still 1222.44.
Anastasiya Glushkova
Analyst of LiteForex Group of Companies
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EUR/USD: general analysis
Current trend
On Monday the pair EUR/USD fell to the level of 1.3489 because ECB had lowered interest rate to the negative value. During the Asian session Euro has regained losses and at the moment it is trading at the level of 1.3530.
Support and resistance
On the daily chart resistance level will be at the local highs of 1.3560 and 1.3579. Psychologically important level for the bulls will be 1.3600. Support to the pair will be provided by the level of 23.6% (1.3516) Fibonacci retracement, moving average with the period 55 (1.3489) and moving average with the period 100 (1.3414).
Trading tips
It is recommended to place sell orders below the level of 1.3489 with profit taking near 1.3414.
Andrey Cherkas
Analyst of LiteForex Group of Companies
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USD/JPY: weak Yen promotes economic growth in Japanese
Current trend
Currency pair USD/JPY has grown at the beginning of this week reaching six-month highs at the level of 101.91. The rise in the pair is supported by expectations of phasing out quantitative program in the USA. It is assumed that even in case of the decrease in the volume of American securities. Ultrasoft monetary policy in Japan will be continued. According to Japanese politicians, Abenomics bears fruit: weak Yen helps to regain competiveness of Japanese products; GDP in the country is growing and inflation rate is slowly increasing (although the target level of 2% has not been reached yet).
Support and resistance
Technical indicators show that on Monday the pair broke down the upper limit of the ascending channel and later went back inside its limit. The key level is the moving average line of “Bollinger bands” indicator (101.30). If this level is broken down downward correction can continue to the level of 100.70. However it is most likely that upward movement go on to the level of 101.80 and 102.30. Indicators give mixed signals. Bollinger bands are directed upward and demonstrate narrowing in advance of sharp changes in price. MACD histogram is in the positive zone, its volumes are decreasing. Stochastic lines are directed downward.
Trading tips
In the current situation it is advisable to open positions with profit taking at the level of 102.30. Short positions with the target of 100.70 can be opened if the price breaks down the level of 101.30.
Dmitriy Zolotov
Analyst of LiteForex Group of Companies
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