LiteForex Market Analytics

[LiteForexTeam]

XAU/USD: general analysis

Current trend

Demand for gold continues growing and has reached 2,335 tons in the first half of 2016. In April-June period, total demand increased by 15 percent compared to the 2015 second quarter. Investors are shifting their assets to gold to reduce the risk amid the lack of stability in global markets.
It should also be noted that central banks’ bond-buying programmes and strong demand for bonds among investors accelerate a fall in global bond yields. The current situation in stock markets raises concern as well, and some experts believe that stocks might soon head to a fall.

Support and resistance

RSI is near the oversold zone, suggesting the possibility of a growth in the pair.
The nearest support level is at 1330.29.
The nearest resistance level is at 1342.43.

Trading tips

Long positions can be opened from the level of 1334.45 with the target at 1352.00 and stop-loss at 1329.00.

[LiteForexTeam]

USD/CAD: general analysis

Current trend
Last week, the USD/CAD pair was under pressure amid a growth in oil prices. The Canadian Dollar gained strong support when Saudi Energy Minister said the country would discuss measures aimed at stabilizing prices with other oil producers during a meeting in late September.
At the same time, Saudi Arabia boosted its oil output in July to a record 10.67 million barrels a day and lowered the pricing terms for Asian clients that is seen as a negative factor for the Canadian Dollar.

Support and resistance
Bollinger Bands on the 4-hour chart is moving down. MACD histogram remains in the negative zone, its volumes are falling and keeping. Stochastic is heading towards the border of the overbought zone.
Short positions seem preferable, but it is recommended to wait for clearer trading signals before placing your orders.
Support levels: 1.2948, 1.2935, 1.2922, 1.2912, 1.2901.
Resistance levels: 1.2974, 1.2988, 1.3199, 1.3002, 1.3016, 1.3061.

Trading tips
Short positions can be opened from the current levels with targets at 1.2925, 1.2915 and stop-loss at 1.2980. Validity – 1-3 days.
Long positions can be opened after the breakout of the level of 1.2980 with the target at 1.3010 and stop-loss at 1.2960. Validity – 2-4 days.

[LiteForexTeam]

NZD/USD: growth continues

Current trend
The pair continues growing amid significant weakening in the US Dollar. The American currency was pressured by poor data on Retail Sales and the GDP for the second quarter of the year. In addition, today’s data on the Consumer Price Index showed a zero inflation growth in July, which increased pressure on the Dollar due to falling probability of monetary policy tightening by the Fed until the end of the year.
Tomorrow attention needs to be paid to data on the labour market and Producer Price Indices in New Zealand, and to the FOMC Minutes in the US.

Support and resistance
In the medium-term, the pair is expected to continue growing towards the key resistance level at 0.7330, a breakout of which would open the way towards the levels of 0.7600, 0.7625.
Technical indicators suggest a growth continuation. MACD histogram is in the positive zone and its volumes are growing. Bollinger bands are directed up.
Support levels: 0.7230, 0.7175, 0.7150, 0.7020, 0.7000, 0.6955, 0.6900, 0.6750.
Resistance levels: 0.7300, 0.7330, 0.7415, 0.7450, 0.7500, 0.7565, 0.7600, 0.7625.

Trading tips
Long positions can be opened from current levels and from the levels of 0.7230, 0.7175 with the target at 0.7600 and stop-loss at 0.7135.

[LiteForexTeam]

EUR/USD: general review

Current trend
Today the pair is consolidating after a significant growth yesterday amid the publication of weak data in the US.
The Consumer Price Index in July grew by only 0.8%, which was worse than forecasts and increased doubts on the market regarding the possibility of monetary policy tightening by the Fed this year. In addition, the ZEW Survey – Economic Sentiment in the eurozone increased from -14.7 to 4.6 points, substantially exceeding forecasts, while the trade balance surplus rose from 24.6 billion to 29.9 billion Euro.

Support and resistance
On the hourly chart, the pair has formed a “triangle” patter, with the upper border at the level of 1.1283 and the lower at 1.1254.
RSI is trying to turn down in approximately the middle of its range.
The nearest support level is at 1.1254.
The nearest resistance level is at 1.1283.

Trading tips
Short positions can be opened from the level of 1.1254 with the target at 1.1200 and stop-loss at 1.1283.

[LiteForexTeam]

EUR/JPY: general analysis

Current trend
In the Asian trading session, the Yen grew moderately against the Euro amid strong data on Japan’s trade balance. The country recorded a 513.5 billion surplus in July that is substantially above consensus of a 283.7 billion surplus.
Today the eurozone’s Consumer Price Index came out below market forecasts. The data showed that the index fell 0.6% in July after a 0.2% growth in June. This afternoon, dynamics in the pair can also be influenced by the publication of the ECB Monetary Policy Meeting Accounts, due at 1:30 pm (GMT+2).

Support and resistance
Bollinger Bands on the 4-hour chart is directed horizontally while the price range is widening. MACD remains at the zero line. Stochastic turned up near the border of the oversold zone.
The indicators recommend waiting for clearer trading signals.
Support levels: 112.99, 112.87, 112.74, 112.58.
Resistance levels: 113.27, 113.44, 113.62, 113.92, 114.01.

Trading tips
Long positions can be opened from the level of 113.25 with targets at 113.62, 113.90 and stop-loss at 112.95. Validity – 1 day.
Short positions can be opened from the level of 112.90 with the target at 112.40 and stop-loss at 113.20. Validity – 1 day.

[LiteForexTeam]

EUR/USD: general review

Current trend
Yesterday the pair continued growing amid weakening in the US Dollar. The American currency is pressured by a low probability of an interest rate increase by the Fed this year as the latest FOMC Minutes showed a unanimous opinion of key committee members to leave the rate unchanged.
Today no important macroeconomic data that could affect dynamics in the pair is expected to be published.

Support and resistance
On the 4-hour chart, the pair is trading in the upper Bollinger band, while bands are directed up and the price range is narrowing. MACD histogram is in the positive zone and its volumes are growing. Stochastic is falling and approaching the border of the oversold zone.
The indicators recommend long positions.
Support levels: 1.1310, 1.1303, 1.1296, 1.1289, 1.1279, 1.1266, 1.1251.
Resistance levels: 1.1328, 1.1339, 1.1348, 1.1355, 1.1364, 1.1370.

Trading tips
Long positions can be opened from current prices with the target at 1.1350 and stop-loss at 1.1310. Validity – 1 day.
Short positions can be opened from the level of 1.1295 with the target at 1.1240 and stop-loss at 1.1315. Validity – 1-3 days.

[Meeeru]

XAU/USD: gold is cheaper amid verbal interventions. Fundamental analysis for 22.08.2016





Last week's statements of a number of Fed officials indicating that there is a high probability of raising interest rates in the US in the coming months, contribute to the strengthening of the dollar on the foreign exchange market and the weakening of prices for precious metals, including gold.



After the release on Wednesday of the minutes of the July meeting of the Federal Open Market Committee (FOMC), the dollar dropped massively on the foreign exchange market. The minutes showed that there is no consensus between the leaders of the Fed about monetary tightening in the US in the coming months. The Fed did not take on the obligations regarding the rate increase, making it clear that it will depend on the incoming US economic indicators.



However, on Friday, the US dollar regained some of the previously lost positions after the two representatives of the Fed's management made statements that strengthened expectations of an increase in key interest rate this year. On Tuesday, President of the Federal Reserve Bank of Atlanta Dennis Lockhart said he did not rule out a rate hike in September. "Next year we will raise rates twice or even more," said Dennis Lockhart. Also Tuesday, President of the Federal Reserve New York William Dudley said that the central bank is close to the point where it will have to hike the rates.



The statements by President of the Federal Reserve Bank of San Francisco John Williams he had made on Thursday that the central bank should start raising interest rates "sooner rather than later", supported the dollar on Friday. December COMEX gold futures on Friday closed down 0.8% at 1346.20 dollars per troy ounce.



Rising interest rates usually puts pressure on gold, because in this case interest earning assets are becoming more popular. A stronger dollar also makes gold, whose prices are denominated in US currency, less attractive for holders of other currencies as the cost of borrowings for its acquisition and storage grows.



The Fed's Vice Chairman Stanley Fischer on Sunday was also optimistic about the short-term outlook, saying that the 2% inflation target is "at a stone's throw", and economic growth, according to his expectations, will "accelerate" over the next few quarters.



Fisher's comments also led to increased expectations of the Fed Chairman Janet Yellen's speech to be held at the Fed conference in Jackson Hole this week. If J. Yellen gives a hint of the possibility of a rate hike in September, the dollar will strengthen sharply on the currency market.



However, the remaining risk associated with the state of the global economy, as well as lower interest rates in a number of the world's central banks with the prospect of further easing of monetary policies will support the gold price.

[Meeeru]

thanks , great analysis

[LiteForexTeam]

XAU/USD: general analysis

Current trend
In the long term, the price of gold tends to grow due to several causes. Amid a fall in bond yields, the largest pension funds are seeking for alternative assets to invest in.
It should also be noted that a growth in US stock markets towards new highs raises concerns among investors and results in their decision to diversify risks.
The price of gold gains support from the Fed wait-and-see attitude regarding interest rate hikes. At the same time, political risk should not be underestimated as well. US presidential election is due in November, and now there is still a lot of uncertainty surrounding that.

Support and resistance
The nearest support level is at 1097.66.
The nearest resistance level is at 1112.97.

Trading tips
Long positions can be opened from the level of 1340.00 with the target at 1350.00 and stop-loss at 1333.00.

[LiteForexTeam]

NZD/USD: general review

Current trend
The pair continues growing amid weakening in the US Dollar, which remains under pressure due to a fallen probability of monetary policy tightening by the American regulator in the nearest future. In addition, the pair was supported by today’s Reserve Bank of New Zealand President Graeme Wheeler speech in which he noted the effectiveness of pursued monetary policy and suggested it would be reasonable to tighten it in the near term.
This week, extra attention needs to be paid to data on the US GDP that is due on Friday. An expected fall in the index from 1.2% to 1.1% might substantially support the pair.

Support and resistance
On the daily chart, the pair is testing a strong resistance level at 0.7325.
Bollinger Bands is directed up. MACD histogram is in the positive zone and its volumes are growing. Stochastic turned up near the border of the overbought zone.
The indicators recommend long positions.
Support levels: 0.7278, 0.7240, 0.7201, 0.7179, 0.7143, 0.7110, 0.7064.
Resistance levels: 0.7325, 0.7339, 0.7367, 0.7401.

Trading tips
Long positions can be opened from current prices with targets at 0.7370, 0.7400 and stop-loss at 0.7240. Validity – 2-4 days.
Short positions can be opened from the level of 0.7200 with the target at 0.7140 and stop-loss at 0.7220. Validity – 2-4 days.