Forex: Ichimoku Clouds. Review of USD/CHF
USD/CHF, H4
On the four-hour chart Tenkan-sen line has crossed Kijun-sen from below within the cloud, indicating the reversal of the trend. Chinkou Span line has crossed the price chart from below; Senkou Span A and Senkou Span B lines are going to cross, forming cloud reversal. Due to the strong Bullish movement the pair has entered the cloud but couldn’t reach its upper border, which has become a resistance level at 0.8972. Tenkan-sen line is the closest support level at 0.8902.
USD/CHF, D1
Let’s look at the daily chart. Tenkan-sen line is below Kijun-sen, they are both directed downwards. Chinkou Span is below the price chart; current cloud is still descending. After a long fall the pair has been corrected above Tenkan-sen line (0.8897), which has become a support level now. The closest resistance level is Kijun-sen line at 0.9011.
Key levels
Support levels: 0.8902, 0.8897.
Resistance levels: 0.8972, 0.9011.
Trading tips
On the four-hour chart we’ve got two signals of trend reversal, however the pair has entered the cloud, so new long trades should be opened above its upper border (0.8972). Daily chart doesn’t confirm the reversal of the trend, but shows us a correction of the descending movement.
Anastasiya Glushkova
Analyst of LiteForex Group of Companies
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GBP/USD: US Federal Reserve’s decision has not changed market dynamics
Current trend
Last night, following the meeting of the US Fed it was announced that starting from the 1 January asset repurchase program would be reduced by 10 billion dollars. Market’s reaction to this news was ambiguous. At first the pair GBP/USD fell to the level of 1.6350, then rose to the level of 1.6482 however was not able to stay at this level and fell to 1.6373 where it is trading at the moment. Many analysts predict further reduction of the asset repurchase program in the near future. Today the data on British retail sales will be known, which can help the pair rise to the local highs.
Support and resistance
Resistance levels are 1.6400,1.6425 and 1.6467; the latter one is the key level of the “bulls”. Support levels are 1.6350, 1.6300 and 1.6265.
Trading tips
The pair is likely to move up to the level of 1.6425. At this level it is advisable to place Take Profit orders for long positions. Short positions can be opened below the level of 1.6300.
Ilya Lashenko
Analyst of LiteForex Group of Companies
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