Forex: Ichimoku Clouds. Review of XAU/USD
XAU/USD, H4
Let’s look at the four-hour chart. Tenkan-sen and Kijun-sen lines are getting closer, but are both horizontal. However the pair was able to break through the levels of Tenkan-sen and Kijun-sen and consolidated below the cloud. Although upward impetus wasn’t enough to break into the cloud; following the price, Chinkou Span line wasn’t able to cross the price chart and is now below it. Current Kumo-cloud is still descending, but Senkou Span A and Senkou Span B lines are getting closer. The closest support level is Kijun-sen line at 1233.08. The next obstacle for the price on its way up will be the lower border of the cloud at 1241.51.
XAU/USD, D1
On the daily chart Tenkan-sen line is below Kijun-sen, and the price is stuck between them. Chinkou Span line is below the price chart, current cloud is descending. Tenkan-sen line and Kijun-sen lines have become support (1234.68) and resistance (1277.98) levels respectively.
Key levels
Support levels: 1233.08, 1234.68.
Resistance levels: 1241.51, 1277.98.
Trading tips
On the four-hour chart the signal to open long positions will appear after the cross of Tenkan-sen and Kijun-sen lines or the price chart and Chinkou Span line. However, daily chart doesn’t confirm the reversal of the trend. Targets for the short positions are still 1220.00.
Anastasiya Glushkova
Analyst of LiteForex Group of Companies
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EUR/USD: general analysis
Current trend
Unified European currency is recently trading in the narrow trading channel of 90 points. Yesterday the price repeatedly broke down moving average with the period 200; however, bears did not consolidated success and the price returned to the previous level of 1.3590.
The meeting of European Central Bank, which will be held today, will announce interest rate. It is assumed that this indicator of the monetary policy will remain at the previous level of 0.25%. Preliminary estimate shows that inflation in November will rise from 0.7% to 0.9%, so ECB is unlikely to raise the rate in the circumstances, as it will increase inflationary pressure.
Meanwhile EU news shows that GDP growth rate has slowed down in Q3. The decline is associated with poor economic data of the largest economies of EU, such as France and Germany. Therefore, interest rate is expected to remain low for a long time.
Support and resistance
The nearest resistance level on the four-hour chart is 1.3625. Support level is the bottom limit of the range at the level of 1.3521.
Trading tips
It is recommended to open long positions in case of breakdown of the level of 1.3625 with the target of 1.3730 and stop-loss near 1.3590
Dmitry Agurbash
Analysts of LiteForex Group of Companies
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