Forex: Ichimoku Clouds. Review of USD/CHF
USD/CHF, H4
On the four-hour chart Tenkan-sen line is below Kijun-sen and they are both horizontal. Chinkou Span line is below the price chart; current cloud is descending. The pair has been corrected above Tenkan-sen line once again, but couldn’t overcome Kijun-sen line and dropped under the red line. The closest resistance level is Tenkan-sen line at 0.9066. The pair will meet a support at the level of 0.8995 (previous low of Chinkou Span line).
USD/CHF, D1
Let’s look at the daily chart. Tenkan-sen line is above Kijun-sen, they are both horizontal. Chinkou Span line is above the price chart; current cloud has reversed from descending to ascending. The pair weren’t able to consolidate above the cloud has been following the lower border of the cloud for two weeks. One of the previous minimums of Chinkou Span line (0.8920) is the closest support level. Flat part of the Kijun-sen line is a strong resistance level at 0.9069.
Key levels
Support levels: 0.8995, 0.8920.
Resistance levels: 0.9069, 0.9066.
Trading tips
On the four-hour chart the price has dropped under the red line, further fall to the level of 0.8995 is possible. According to the daily chart analysis short positions should be opened if the pair breaks through the cloud; it means new candlestick opens and closes below the cloud.
Anastasiya Glushkova
Analyst of LiteForex Group of Companies
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EUR/USD: the pair is still flat
Current trend
This week the pair EUR/USD has pushed off from the level of 1.3500 and reached the level of 1.3610. It is day off in the American banks therefore, trades is going to be sluggish. Only German statistics can add volatility to the market. The latest data from EU has positive effect on EUR/USD, pushing the pair upward. US macro-economic data this week is below the forecast
Support and resistance
The nearest resistance level is the local highs of 1.3620. Key support level is Fibonacci retracement of 23.6% (1.3575).
Trading tips
It is expected that the pair will continue to trade in the narrow channel of 1.3620-1.3570. Limited sell and buy limits can be placed at the boundaries of the channel.
Ilya Lashenko
Analyst of LiteForex Group of Companies
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GBP/USD: GDP statistics supported the Pound
Current trend
On Wednesday the pair GBP/USD continued to strengthen. The rise was driven by preliminary GDP for Q3, as the data confirmed significant growth of British economy. GDP has grown by 1.5% on annual basis, which is the highest value since 2010. On the other hand, the American dollar is under pressure from the decrease in number of orders for durable goods in October. Amid these facts, quotes of GBP/USD rose to the highs since January at the level of 1.6327.
Support and resistance
It is expected that in near future quotes will go up to the levels of 1.6360 and 1.6400. However we cannot rule out a chance of correction to the level of 1.6280, especially if today’s speech of the head of the Ban of England will get negative assessment of investors.
On the four-hour chart technical indicators confirm possibility of growth. Bollinger bands demonstrate divergence, confirming uptrend; the price chart is breaking down the upper moving average line, suggesting correction. MACD histogram is in the positive zone, its volumes are increasing. Stochastic lines are ready to move to the overbought zone and form a buy signal.
Trading tips
In the current situation it makes sense to open long positions at the current price with profit taking near 1.6400.
Dmitriy Zolotov
Analyst of LiteForex Group of Companies
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