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
LiteForex information  LiteForex reviews

January 23, 2017
Can Supreme Court Ruling Help GBPUSD Remain Bullish ?
Tomorrow, Tuesday 24 January, around 09:30 GMT, the UK Supreme Court will release the Brexit lawsuit Ruling, on whether the UK Prime Minister Theresa May will need the UK parliament’s approval to invoke Article 50 of the Lisbon Treaty, to leave the EU...
January 20, 2017
Cautious EURUSD Ahead of ECB Press Conference
USD, and the US government bond yields, surged last night following Fed president Janet Yellen’s speech to the Commonwealth Club in San Francisco...
January 19, 2017
Is equilibrium out of reach?
Let’s check what’s going on with Oil before turning our attention to the Russian Ruble. “Black gold” is forming a reversal pattern next to the key level of 52.10. The only matter is that this pattern is above the horizontal level, but the 52.10 level can potentially become the neckline of our pattern...

OANDA Rating
XM Rating
NPBFX Rating
OctaFX Rating
FBS Rating

99Binary Rating
GTOptions Rating
Dragon Options Rating
First Binary Option Service Rating
OptionTrade Rating
IQ Option Rating