Januari 8, 2014 - NZD/USD: investors are waiting for the raise of interest rate | GBP/USD: the pair is trading in the sideways channel

NZD/USD: investors are waiting for the raise of interest rate Current trend Since the beginning of the week the pair NZD/USD has been trading within a range of 50 points (0.8250-0.8300). Uncertainty of the market is determined by controversial factors. From one hand, investors are waiting for the NZRB to raise interest rate, and the anticipation increases the demand of New Zealand currency. From the other hand, at the first Global Dairy Trade auction this year the prices have dropped down by 0.8%. As for the USA, FOMC Minutes will be published today, explaining further policy of the regulator. Support and resistance Today the pair will probably continue to trade within the channel. The key level is 0.8300, its breakdown will open the way to the levels of 0.8320, 0.8335 and 0.8360. On the four-hour chart Bollinger bands are getting narrower, forecasting strong movements of the price. Trading tips Long positions with targets at 0.8360 can be opened above 0.8300. If the price breaks down the level of 0.8275, short positions with take-profits around 0.8250 will become an obvious strategy. Dmitriy Zolotov Analyst of LiteForex Group of Companies ------------------------------------------------ GBP/USD: the pair is trading in the sideways channel Current trend In January the pair had reached the highs of 1.6600, however failed to maintain at this level and fell to the level of 23.6% (1.6425) Fibonacci retracement. This week the Pound traded in the narrow range of 1.6350-1.6420 against the USD. It is likely that the pair will repeat the attempt to break down the level of 1.6600. The pair is in the bottom of the ascending channel, trying to regain lost positions. Technical indicators do not give clear signals, showing sideways movement. Support and resistance The nearest resistance level is 1.6425 (23.6% Fibonacci retracement), which will be followed by 1.6465, 1.6500, 1.6540 and 1.6600. Support levels are the local lows of 1.6350 and 1.6310. Trading tips It is recommended to open short positions after consolidation of the price below the level of 1.6350. Pending buy orders can be placed above the level of 1.6430 with the target of 1.6600. Ilya Lashenko Analyst of LiteForex Group of Companies