Januari 9, 2014 - Forex: Ichimoku Clouds. Review of AUD/USD | EUR/USD: correction is expected to be short-term

Forex: Ichimoku Clouds. Review of AUD/USD AUD/USD, H4 Let’s look at the four-hour chart. Tenkan-sen line has crossed Kijun-sen from above, forming “Dead Cross” pattern. Under the pressure of the Cross the pair has broken down the cloud and Chinkou Span line has crossed the price chart from above. Senkou Span A and Senkou Span b lines are getting closer prior to the cloud reversal. The closest resistance level is the lower border of the cloud at 0.8900. One of the previous minimums of Chinkou Span line is expected to be a support level at 0.8851. AUD/USD, D1 On the daily chart Tenkan-sen line is below Kijun-sen, both lines are horizontal. Chinkou Span line is below the price chart; current cloud is descending. After long fall the pair has been corrected to the level of Tenkan-sen line. Kijun-sen line becomes the closest resistance level at 0.8994. One of the previous minimums of Chinkou Span line is expected to be a support level at 0.8848. Key levels Support levels: 0.8851, 0.8848. Resistance levels: 0.8900, 0.8994. Trading tips On the four-hour chart the breakdown of the cloud is a signal to sell with target at 0.8851. On the daily chart we can see a correction of the Bearish trend. Anastasiya Glushkova Analyst of LiteForex Group of Companies --------------------------------------------- EUR/USD: correction is expected to be short-term Current trend On Wednesday currency pair EUR/USD smoothly went down reaching five-week lows of 1.3553. The rise in the USD was caused by the minutes of the last meeting of the US Fed, which said that many of the Committee members admitted decline in efficiency of QE3. Investors expected that volumes of bond purchase would continue to decrease, thereby increasing demand for the American currency. Today the USD can strengthen due to the report of the U.S. Department Labour on number of initial applications for unemployment benefits. According to projections, this index will go down, amounting to 335 thousand. Support and resistance At the moment the pair is experiencing correction in the downward channel, moving to the level of 1.3610 (middle line of Bollinger bands indicator and upper limit of the channel. From this level the price may reverse and go down to support levels of 1.3570 and 1.3535. On the four-hour chart technical indicators confirm correction. MACD histogram is in the positive zone; its volumes are decreasing. Stochastic lines are directed upwards. Trading tips It is advisable to open short positions with the target of 1.3535 if the price reaches the level of 1.3610. Dmitry Zolotov Analyst of LiteForex Group of Companies