LiteForex Market Analytics

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Re: LiteForex Market Analytics

Postby LiteForexTeam » Tue Aug 27, 2013 8:05 am

GBP/USD: the pair is preparing to break through 1.5490

1. Current trend of GBP/USD

Since last week the pair has been within downward correction, which had been provoked by the FOMC Minutes publication. ThisTuesday Pound has already lost more than 150 points. Even positive GDP data from UK couldn’t stop the fall. According to the preliminary forecasts, GDP will rise up to 0.7% exceeding the expectations. There are no important releases in trader’s calendar for today, but tomorrow we anticipate the speech of BOE Mark Carney. His speech will probably cause high market volatility.

2. Important levels: support and resistance

We can see a development of the downward movement. The price is moving towards middle MA of Bollinger Bands 1.5490. If this level is broken through, the pair will go further down to the level of 1.5400 and even to the lower border of the uprising channel. Otherwise the price can return to the levels of 1.5600 and 1.5650. Regarding the situation I would recommend to open short trades with Take Profit orders at 1.5400.

3. Technical indicators

On the daily chart indicators confirm the possibility of fall. Bollinger Bands are directed upwards, but the price chart is moving towards the MA. MACD histogram is in overbought zone. It crosses signal line from above, forming a signal to sell. Stochastic lines have entered oversold zone, giving another signal to sell.

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Re: LiteForex Market Analytics

Postby LiteForexTeam » Thu Aug 29, 2013 8:05 am

XAG/USD: technical analysis

1. Current trend

Yesterday morning Silver has once again reached four-month highs. After that we witnessed a correction down to the level of 23.6% of Fibonacci lines, the level prevented further fall. The commodity is testing now the level of 23.90. Next support levels will be at 23.40, 22.90, 22.60 and 22.00. Resistance levels are 24.25 and 24.60, and the key level at 25.00, of which the price can rebound.
Indicators give us controversial signals. Stochastic is in overbought zone and signalize the rise. Signal line of the MACD indicator is in positive zone, but outside the histogram zone and is directed downwards, giving a signal to sell.

2. Trading tips

Short trades with targets at 22.80 can be opened if the price consolidates under the level of 23.70. Sell limit orders should be placed at the level of 25.00, but do not forget about stop-losses.

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Re: LiteForex Market Analytics

Postby LiteForexTeam » Thu Aug 29, 2013 8:15 am

EUR/JPY: technical analysis

1. Current trend

At the end of the last week the pair has reached one-month highs at the level of 132.40. This week the pair has returned to the downward movement and on Tuesday during Asian session has dropped down to the 129.80.EUR/JPY is trading now within a range 130.00-130.50 under the level of 50.0% of Fibonacci lines, which becomes a strong resistance level.
Stochastic is above MA and gives a signal to sell. MACD histogram and signal line are in the negative zone. If volumes of the histogram start to decrease and signal line leave the zone of histogram, we will get a signal to buy. MA with 20 and 50 periods indicate sideways movement.

2. Levels of support and resistance

The nearest support line is 130.00; the next support (129.80) coincides with 38.2% of Fibonacci lines. If the price breaks through the last support, we will see further fall down to the level of 129.00. Resistance levels are 130.50 и 130.90, the last one is the main target for the Bulls.

3. Trading tips

Regarding the situation I would recommend to avoid opening new trades until we receive clearer trading signals.

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Re: LiteForex Market Analytics

Postby LiteForexTeam » Thu Aug 29, 2013 8:17 am

GBP/USD: analysis and forecast

1. Current trend of GBP/USD

On Wednesday the pair GBP/USD has hit three-week lows at 1.5428. However the speech of Mark Carney helped the Pound to rise again. Head of BOE announced that British economy is recovering but it may take three years for the unemployment rate to decrease down to 7%. After the announcement the pair has gained 100 points and gone up to the level of 1.5540. Today the pair returned to fall once again: investors are waiting for the US GDP data release. According to experts the rate will increase up to 2.2% and the pair will be pushed down.

2. Important levels: support and resistance

The pair is trading around the level of 1.5520, which coincides with middle MA of Bollinger Bands. The most probable scenario is the downward movement towards support level of 1.5400 and then rebound. I would recommend to open short trades at the level of 1.5500 and Take Profit orders at 1.5400.

3. Technical indicators

Indicators on the daily chart give us controversial signals, showing some некоторую uncertainty of the market before important releases. Bollinger Bands are directed upwards, but the price chart has reached MA and can soon enter the lower band MACD histogram is in overbought zone, its volumes are decreasing. Stochastic lines are directed upwards after crossing, giving us a signal to buy.

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Re: LiteForex Market Analytics

Postby LiteForexTeam » Fri Aug 30, 2013 8:19 am

Brent: review

1. Current trend

Rate of the Brent couldn’t stay long at the six-month highs and started to fall. NATO will probably give up the intention of military intervention to Syria; this decision makes crude oil cheaper. Britain Parliament declined the proposal of Prime Minister David Cameron to get involved with Syrian conflict. Yesterday Barak Obama announced that USA didn’t come to a conclusion concerning chemical weapon attack in Damascus. Earlier France was supporting military intervention, but now French government encourages to solve the problem in diplomatic way. The news has calmed down the market and investors started to take the profit. Today we expect important fundamental data from US and Eurozone which may affect the movement of the instrument.

2. Support and resistance

Resistance levels: 116.30, 117.30.
Support levels: 114.60, 113.80, 112.50.

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Re: LiteForex Market Analytics

Postby LiteForexTeam » Fri Aug 30, 2013 8:22 am

USD/CAD: GDP data release will weaken “loonie”

1. Current trend

Yesterday the pair USD/CAD has risen by 70 points, had met a resistance at the upper line of “Bollinger Bands” indicator and couldn’t overcome the level of 1.0542. Now the price chart is moving towards middle MA of the indicator (1.0504). Fundamental data affecting the movement of the currency will be Canadian GDP data and US stats publication. At the beginning of the American session personal income and spending indices will be released. According to experts, income index will remain the same or rise by в 0.3%, while personal spendings will slightly decrease. Canadian GDP date put the pair under pressure; analyst predict decline of both monthly and annual indices. Attention should also be paid to the consumer sentiment and PMI indices release.

2. Support and resistance

Key support level is 1.0504; if it is broken through, the price may go further down to the level of 1.0471. More likely the price will try overcome yesterday’s maximum at 1.0542, and it’s breakdown will open new targets at 1.0568 and 1.0608.

3. Trading tips

As a trading strategy I would recomenf to open long trades at current price and with targets around the level of 1.0568.

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Re: LiteForex Market Analytics

Postby LiteForexTeam » Fri Aug 30, 2013 8:37 am

GBP/USD: review

1. Fundamental data

Due to the Head of BOE speech the pair GBP/USD has slightly decreased. Mark Carney has stated that interest rate will be raised if the unemployment rate exceeds the level of 7%. He also announced that the government can start a new round of monetary easing if economic indices drop down.
Yesterday the pair was under pressure of the Syrian conflict. David Cameron has convened urgent meeting of the House of Commons to explain the necessity of military intervention to Syria. But the Parliament has suddenly declined the proposal of Prime Minister, and Pound has regained its positions. 272 supported military action, 285 were against.

2. Support and resistance

The pair is trading above the level of 38.2% of Fibonacci lines (1.5483). If the level is broken through, the price will move towards 1.5420. Support levels are 1.5546 and 1.5580.

3. Trading tips

Mortgage Approvals index didn’t meet investors’ expectations, so market players are going to pay attention to the US Personal Spending index. The price is expected to test the level of 1.5420. I would recommend to place sell pending orders at the level of 1.5447 with take-profits at the support level.

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Re: LiteForex Market Analytics

Postby LiteForexTeam » Mon Sep 02, 2013 6:43 am

EUR/USD: general analysis

1. Current trend
At the end of the last trading week American currency has strengthened its positions thanks to the rather high demand for the Dollar and positive macroeconomic data from USA. For example, GDP index has risen by 2.5% exceeding the expectations. The decrease of unemployment claims can also be a positive sign.
According to Fibonacci lines the pair will be corrected to the level of 38.2%. At the beginning of the current trading session the pair went up bouncing off the support line at 1.3185. On the four-hour chart we can see a development of the downwards channel though the next movement of the price can be uprising.
Due to the official day-off in States fundamental data affecting pair movements will be from Eurozone. Analysts expect the rise of the manufacturing indices of Spain and Italy. Tomorrow’s stats from USA can push the national currency up. Construction spending index will probably rise indicating the development of this sector.



2. Support and resistance
Important support level is 1.3185. Bouncing of this level the price can go all the way up to the level of 2.6% of Fibonacci lines (1.3288). Second wave of the correction can reach the level of 1.3103 (50% of Fibonacci lines).

3. Trading tips

As a trading strategy I would recommend to buy at the current price with targets at 1.3288. Do not forget the stop-losses, Dollar can strengthen and the pair will fall to the level of 1.3103.

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Re: LiteForex Market Analytics

Postby LiteForexTeam » Mon Sep 02, 2013 8:07 am

Brent: Review

1. Current trend

Last trading session Brent has ended at the level of $114.00. Crude oil has been weakening last Friday due to the positive sentiment concerning Syrian conflict. Next trading session has been started with a gap; Brent has opened this week at $112.33. As you can remember the instrument had hit six-month highs on 28th of August at $117.27.
Though USA doesn’t give up on its plans of military intervention, oil market remains stable. Brent is supported by the China macroeconomic data. Manufacturing index has risen first time for the 4 month, indicating a development of expansion rate of Chinese economy.

2. Support and resistance

Support levels: 112.20, 111.00.
Resistance levels: 113.60, 115.10.

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Re: LiteForex Market Analytics

Postby LiteForexTeam » Tue Sep 03, 2013 7:35 am

Forex: Ichimoku Clouds. Review of USD/CHF

USD/CHF, H4

On the four-hour chart Tenkan-sen line is above Kijun-sen line and they are both directed upwards. Chinkou Span line is above the price chart; current cloud is ascending. The pair has slowed down its uprising movement but stays above the Tenkan-sen line (0.9344). One of the previous maximums of Chinkou Span line is expected to be a resistance level at 0.9385.

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USD/CHF, D1

Let’s look at the daily chart. Tenkan-sen and Kijun-sen lines are crossed prior to Golden Cross formation. The price has consolidated above Kijun-sen line (0.9281), which is now a support level. Chinkou Span has crossed the price chart from below, current cloud is descending. The next obstacle for the price on its way up will be the lower border of the cloud at 0.9439.

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Key levels

Support levels: 0.9344, 0.9281.
Resistance levels: 0.9385, 0.9439.

Trading tips

On the four-hour chart Ichimoku lines indicate the development of the uprising movement. On the daily chart we can see a reversal of the trend. Targets for the long positions are 0.9385, 0.9439.

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