LiteForex Market Analytics

[LiteForexTeam]

Forex: Ichimoku Clouds. Review of USD/CHF

USD/CHF, H4

On the four-hour chart Tenkan-sen line is below Kijun-sen, the blue line is directed downwards, while the red one becomes horizontal. Chinkou Span line is below the price chart; current cloud is descending. Resistance levels are Tenkan-sen (0.8990) and Kijun-sen (0.9036) lines. One of the previous minimum of the Chinkou Span line is expected to be a support level at 0.8907.



USD/CHF, H4, D1

The same picture is on the daily chart. Tenkan-sen line is below Kijun-sen line, Chinkou Span line is below the price chart; current cloud is descending. After a small correction the price has returned to the downward movement. Tenkan-sen (0.9050) line is the closest resistance level. One of the previous minimum of the Chinkou Span line is expected to be a support level at 0.8777.



Key levels

Support levels: 0.8907, 0.8777.
Resistance levels: 0.8990, 0.9036, 0.9050.

Trading tips

On the both charts we can see a slowdown of the trend movement. It’s a good opportunity to open new short trades with targets at 0.8907 and 0.8777.

Anastasiya Glushkova
Analyst of LiteForex Group of Companies

[LiteForexTeam]

EUR/USD: general analysis

Current trend

Contrary to the expectations, yesterday’s data on the number of jobs outside agricultural sector in the USA was negative. The index amounted to 148 thousand against the forecast of 180 thousand. This fact caused significant decline o=in the USD and the pair EUR/USD went up to the level of 1.3791.

Some US data is scheduled for the release today: prices of imports are expected to grow by 0.3%, housing price index may reduce to 0.8% and the most important indicator: applications for unemployment benefits can decrease by 18 thousand.

Support and resistance

On the daily chart the pair faces resistance at the upper limit of the ascending channel. The pair may experience correction to the lower limit of the channel (1.3396), which is near the bottom line of “Bollinger bands” indicator. In the long-term uptrend can continue up to 1.4258. Support levels are 1.3548 and 1.3396. Resistance level is at the price highs of 1.3793, which is near the upper limit of the channel.

Trading tips

It is recommended to open short positions in anticipation of upcoming correction. Targets levels are 1.3548 and 1.3396. Limit buy order can be placed at the level of 1.3396



Kamil Avad
Analyst of LiteForex Group of Companies.

[LiteForexTeam]

USD/CAD: analysis and forecast

Current trend

Yesterday the pair USD/CAD has risen abruptly after the release of Bank of Canada Rate Statement. The interest rate remained the same to the surprise of the market players. BoC used to say, that poor economic conditions led to the hard-edged monetary policy.

Support and resistance

The weakening of the “Canadian” made the pair break through the both MAs, of 13 and 100 periods. The pair was stopped by the resistance level of 1.0400. The closest target for the price is the point of 1.0420 (10th November highs). Support levels are Fibonacci lines of 23,6% (1.0365) and 50% (1.0334), which coincides with 100-days and 13-days MAs.

Trading tips

It is recommended to buy a the level of 1.0365 with targets around 1.0420 and stop-losses at the level of 1.0334.



Andrey Cherkas
Analyst of LiteForex Group of Companies

[LiteForexTeam]

GBP/USD: trend reversal

Current trend

Yesterday the pair GBP/USD fell to support level of 1.6120, then pushed off from it and started to grow slowly. The Pound was supported by positive data on mortgage lending in the UK and weak US statistics. Today the pair broke down key resistance level of 1.6200; however the British currency is not strong enough to consolidate above this level. The Pound is still under pressure from slowdown of national economic growth.
Today, the following data is scheduled for release: industrial orders expectations in the UK, initial applications for unemployment benefits in the US, business activity index in the US manufacturing sector and the US index of sales of new homes.

Support and resistance /b]

On the four-hour chart there is a pattern “head and Shoulders”. If the pair fell to the level of the “neck” (1.6120), the pair is likely to fall to the key support level of 1.5950 (level of 38.2% Fibonacci). In the medium-term the USD can strengthen and the pair GBP/USD can fall to support levels of 1.5880 and 1.5750.


MACD indicator confirms forecast of trend reversal and the beginning of downtrend: histogram is below the signal line and is directed downward.

Support levels: 1.6100, 1.6000, 1.5880 and 1.5750.
Resistance levels: 1.6200 and 1.6260.

[b]Trading tips

It is advisable to place sell orders at the current price with profit taking near 1.5880-1.5750.



Dmitry Likhachev
Analyst of LiteForex Group of Companies

[LiteForexTeam]

NZD/USD: technical analysis

Current trend

At the beginning of this week the pair NZD/USD reached new highs of 0.8550, pushed off from the upper boundary of the ascending channel and fell sharply to the level of 0.8300. Currently the NZD is testing the lower level of the ascending channel, breakout of this level will enable further decline in the pair.
MACD is in the negative zone, the signal line is directed downward; volume of histogram continues to increase. Stochastic has entered into oversold zone; however, it indicates downward movement.

Support and resistance

Resistance levels: 0.8335 and 0.8360, the latter one coincides with the level of correction at 23.6% Fibonacci. Support levels: 0.8300, 08250 and 0.8200.

Trading tips

It is recommended to open short positions below the level of 0.8300 with the target of 0.8200. If the price break down the level of 0.8400, it is advisable to place buy orders.



Ilya Lashenko
Analyst of LiteForex Group of Companies.

[LiteForexTeam]

EUR/USD: downward correction is possible

Current trend

This week the pair EUR/USD has been rising and reached November 2011 highs at the level of 1.3831. Investors are still disappointed by the negative data from US labour market which will surely postpone QE# program curtailment. However today Dollar may receive support from the Durable Goods Orders release. This indicator is expected to rise considerably from 0.1% to 2% and strengthen American currency.

Support and resistance

The price chart is moving towards 1.3855 (upper MA of Bollinger Bands), but after favourable fundamental data from US the pair may fall down to the level of 1.3770 (middle MA of Bollinger Bands). General trend is still “bullish”.
On the four-hour chart technical indicators confirm the possibility of the rise. Bollinger bands and Stochastic lines are directed upwards, MACD histogram is in overbought zone.

Trading tips

It is recommended to open short trades at 1.3810 with take-profits around 1.3770. At the same level pending buy orders may be placed.



Dmitriy Zolotov
Analyst of LiteForex Group of Companies

[faryfx]

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[LiteForexTeam]

USD/JPY: the pair will grow
Current trend

Last Friday the pair fell to the level of 96.93. The decline was caused by the drop in stock index Nikkei. However, by the closing of the session the pair corrected up to the level of 97.45. At the beginning of this week the Yen was at the level of 97.73 and is now trading near 97.60. Deputy Governor of the Bank of Japan said that the government is going to buy assets until inflation reaches the level of 2%.

Support and resistance
The nearest support level is 97.50, next support levels are 97.25 and 97.00; the latter one is the main target of the “bears”. Resistance levels are 97.75, 98.00 and 98.50.

Trading tips
It is likely that the pair USD/JPY will continue to grow. It is advisable to place long positions above the level of 97.75 with the target of 98.50.



Ilya Lashenko
Analyst of LiteForex Group of Companies

[LiteForexTeam]

GBP/USD: the Pound will fall to the level of 1.5950

Current trend
The British currency continues to mill about, while the pair GBP/USD has barely responded to the macro-economic statistics. Last Friday preliminary British GDP for Q3 2013 became known. The index was consistent with expectations and GBP/USD slightly strengthened; however a few hours later started to decline again. This trading week started with the sideways movement in the channel of .6190-1.6160. Today the following data will be released: retail sales index and index industrial output in the UK and the US construction sector statistics.


Support and resistance
The pair GBP/USD cannot determine movement directions. Prediction that the Pound will grow against the USD does not seem so unambiguous. Investors are losing interest in GBP and demand for the British currency is decreasing, which puts additional pressure on the pair. In the medium-term the pair may go down to support level of 1.5950 and downward trend can continue.

Support levels: 1.6100, 1.6000, 1.5880 and 1.5750.
Resistance levels: 1.6200 and 1.6260.


Trading tips
Sell orders can be placed at the current price with profit taking of 1.5950-1.5880. Pending orders to sell can be opened from the levels of 1.6200 and 1.6260 with profit taking at the level of 1.6000.



Dmitry Likhachev
Analyst of LiteForex Group of Companies

[LiteForexTeam]

USD/CAD: general analysis

Current trend
The pair USD/CAD continues to show steady growth. If the pair manages to break down resistance level of 1.0457, the pair may go up to the level of 1.0555.
Canadian dollar is supported by fundamental data. It became known that unemployment rate fell to 6.9% in September, which is the lowest rate since December 2008. Average wages increased by 1.83%, indicating recovery of the country’s economy. Amid this facts consumer sentiment index rose up to 59.75. Number of Canadians, who receive unemployment benefits, is reducing. This fact will have a positive impact on the domestic consumption and business climate in the country.
Canada is making progress in the field of International trade. The country signed a free trade agreement with European Union. This decision will allow the country to increase trading turnover and what is the most important, this agreement shall eliminate duties on exports and imports. EU will become Canada’s second largest trading partner after the USA.



Support and resistance
The nearest resistance level on the daily chart is 1.0457. Support level is 1.0396.

Trading tips
It is advisable to open long positions from the level of 1.0460 with the target of 1.0545 and protective orders near 1.0425.




Dmitry Agurbash
Analyst of LiteForex Group of Companies