MACD histogram is in the overbought zone

October 11, 2013

Current trend

US President Barack Obama did not meet the wishes of the Republicans, who suggested to raise the limit of the US national debt. It is expected that on 17 October deficit of the US budget will amount to $30 billion and the Treasury will have to declare default. Nevertheless, probability of default is estimated as low. It is very unlikely that the US Fed will start to phase out QE3 program due to shutdown of work of the US government, since the idle period will have a negative impact on the economic recovery.

Support and resistance

Technical analysis confirms “bullish” sentiment among market participants. MACD histogram is in the overbought zone, dynamics of volume is not clear. “Bollinger bands” indicator shows further growth, its moving average line is directed upward.

Resistance levels: 1.3573 and 1.3618.

Support levels: 1.3384 and 1.3464.

Trading tips

It is recommended to place long positions at the current price with profit taking at the level of 1.3573 and stop-loss at the level of 1.3464.

Andrey Chupov           
Analyst of LiteForex Group of Companies

Publication source
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