LiteForex Market Analytics

[LiteForexTeam]

XAG/USD: technical analysis

Current trend

Following the rise up to local highs of 23.00 last month, the pair has started to decline, which still contines. At the moment silver is trading near the summer lows. It is likely that the decline will continue after the slight correction. Most of the technical indicators show the decline. MACD histogram is in the negative zone, the signal line is inside the histogram. Moving average lines with the periods 20.50,100 are trending downwards. Stochastic is in the oversold zone, both of its lines are directed downwards, which can indicate correction.

Support and resistance

Resistance levels are 19.80, 20.00 and 20.20. Support levels are 19.50 and 19.15, both of these levels are very important for the “bears”.

Trading tips

In view of growth prospect in the pair, it makes sense to place limit sell order at the level of 20.20 and do not forget to place stop-loss. Short positions are recommended below the levels of 19.50 and 19.15.



Ilya Lashenko
Analyst of LiteForex Group of Companies.

[LiteForexTeam]

GBP/USD: GDP statistics supported the Pound

Current trend

On Wednesday the pair GBP/USD continued to strengthen. The rise was driven by preliminary GDP for Q3, as the data confirmed significant growth of British economy. GDP has grown by 1.5% on annual basis, which is the highest value since 2010. On the other hand, the American dollar is under pressure from the decrease in number of orders for durable goods in October. Amid these facts, quotes of GBP/USD rose to the highs since January at the level of 1.6327.

Support and resistance

It is expected that in near future quotes will go up to the levels of 1.6360 and 1.6400. However we cannot rule out a chance of correction to the level of 1.6280, especially if today’s speech of the head of the Ban of England will get negative assessment of investors.
On the four-hour chart technical indicators confirm possibility of growth. Bollinger bands demonstrate divergence, confirming uptrend; the price chart is breaking down the upper moving average line, suggesting correction. MACD histogram is in the positive zone, its volumes are increasing. Stochastic lines are ready to move to the overbought zone and form a buy signal.

Trading tips

In the current situation it makes sense to open long positions at the current price with profit taking near 1.6400.



Dmitriy Zolotov
Analyst of LiteForex Group of Companies

[LiteForexTeam]

EUR/USD: upward impetus has no more power

Current trend

This Thursday the pair EUR/USD was strengthening thanks to the growing demand for Euro. Macroeconomic forecasts for Germany didn’t prove accurate, unemployment claims increased once again. Although German CPI gave Euro some support, the index has risen by 0.2%, exceeding forecasts by 0.1%. European currency is still strengthening, though upward impetus is going to die soon.
After recent crisis in Eurozone residents prefer no tot spend, but to keep money in banks. So EU faces new problem — deflation. To boost up demand ECB is going to lower interest rate to the negative level. European countries are also concerned about high course of Euro that makes it harder to recover economic system.
Today investors’ attention is drawn to the inflation rate and CPI publication in Eurozone. If consumer prices index continues to decrease, the government will most probably prolong soft monetary policy and lower interest rate to the negative level. In USA huge sales start this week, these days American spend a lot and give Dollar support.

Support and resistance /b]

After considerable growth the pair will be corrected and then again go up. In middle-term prospect American currency will be strengthening due to the positive statistics and QE3 program curtailment. The pair EUR/USD will be trading within a range of 1.3620-1.3500 and then fall down to the level of 1.3300, if fundamental data are negative.

Support levels: 1.3560, 1.3500, 1.3420.
Resistance levels: 1.3620, 1.3700, 1.3830.

[b]Trading tips

It is recommended to open sell orders with targets within the range of 1.3520-1.3400.



Dmitry Likhachev
Analyst of LiteForex Group of Companies

[LiteForexTeam]

USD/JPY: general analysis

Current trend

On Thursday the pair went up reaching six-month highs at the level of 102.37. Today the Yen continued to lose positions against the American dollar. The rise in the pair USD/JPY is supported by the talk that the Bank of Japan is going to soften monetary policy. Another fact that put pressure on the Japanese currency is the increase of volume of foreign bonds redemption by residents of Japan. Last week the amount reached 1405.6 billion yen, which was by 351.5 billion yen higher than the previous value.

Support and resistance

The nearest resistance level on the daily chart is 102.58 (highs of 24 May). Next resistance line is psychologically important level of 103.00. The target of the “bulls” is the local highs of 103.73. Support level is the local highs of 101.93 and 101.14.

Trading tips

MACD histogram is in the positive zone above the signal line indicating strong uptrend. Stochastic is in the overbought zone. Breakdown of the level of 102.58 will open the way to the level of 103.73 for the “bulls’. It is advisable to place sell orders in case of decline in price below 101.93 with the target of 101.14.



Andrey Cherkas
Analyst of LiteForex Group of Companies

[LiteForexTeam]

GBP/USD: the Pound is growing

Current trend
Despite negative British macro-statistics, the pair GBP/USD was steadily growing last week, breaking down important resistance levels. It became known that British consumer confidence index fell to the level of –12 points; mortgage lending level was below the forecast of 68.6 points, declining to 67.7 points. Despite economic problems in EU, demand for the Pound continues to increase because investors do not feel confidence to the USD.
Business activity indices in the manufacturing sectors of the UK and US are scheduled for the release today. It is also expected that the head of the US Fed Ben Bernanke will give a speech today. It is assumed that British PMI will increase, which will trigger the rise in the Pound.

Support and resistance
In the medium term ascending movement can reach the key resistance level of 1.6600. Do not forget that following long-term growth, the pair will inevitably experience correction.

Support levels: 1.6300, 1.6260 and 1.6200.
Resistance levels: 1.6450 and 1.6600.

Trading tips

In the current situation it is advisable to place buy orders with profit taking at the level of 1.6600. In view of possible downward correction it makes sense to place pending buy orders at the levels of 1.6300 and 1.6270 with profit taking at the level of 1.6600.




Dmitry Likhachev
Analyst of LiteForex Group of Companies

[LiteForexTeam]

Forex: Ichimoku Clouds. Review of AUD/USD

AUD/USD, H4
Let’s look at the four-hour chart. Tenkan-sen line is below Kijun-sen, the red line is going to cross the blue one from above, forming Golden Cross pattern. Chinkou Span line is crossing the price chart from below; current cloud is descending. After long fall the pair has been corrected above Tenkan-sen and Kijun-sen lines, the latter becomes a support level at 0.9129. The next obstacle for the price will be the lower border of the cloud at 0.9221.



AUD/USD, D1
On the daily chart Tenkan-sen line is also below Kijun-sen, but they are both horizontal. Chinkou Span line is below the price chart from below; the cloud has reversed from ascending to descending. The price has broken through the cloud and is still falling. The closest resistance level is Tenkan-sen line at 0.9267. One of the previous minimums of Chinkou Span line is expected to be a support level at 0.8900.



Key levels
Support levels: 0.9146, 0.9267.
Resistance levels: 0.9000, 0.8900.


Trading tips
On the four-hour chart we can see a slowdown of the fall, although daily chart confirms Bearish trend. Targets for the short positions are around 0.9000.

Anastasiya Glushkova
Analyst of LiteForex Group of Companies

[LiteForexTeam]

Weekly analytical video review for currency pairs EUR/USD, GBP/USD and USD/JPY

Weekly analytical video review for instruments EUR/USD, GBP/USD and USD/JPY based on fundamental analysis and technical indicators (MACD, Stochastic, Bollinger Bands). Daily reviews and forecast are available at LiteForex site http://www.liteforex.com/?uid=434248008

[LiteForexTeam]

Forex: Ichimoku Clouds. Review of USD/CAD

USD/CAD, H4

On the four-hour chart Tenkan-sen line is above Kijun-sen, they are both horizontal. Chinkou Span line is above the price chart; current cloud is ascending. The closest support level is Tenkan-sen line at 1.0633. One of the previous maximums of Chinkou Span line is expected to be a resistance level at 1.0670.



USD/CAD, H4, D1

At the daily chart we can see a similar situation. Tenkan-sen line is above Kijun-sen, the red line is directed upwards, while the blue one is moving sideways. Chinkou Span line is above the price chart; current cloud is ascending. The closest support level is Tenkan-sen line at 1.0549. One of the previous maximums of Chinkou Span line is expected to be a resistance level at 1.0700.



Key levels

Support levels: 1.0633, 1.0549.
Resistance levels: 1.0670, 1.0700.

Trading tips

On the both charts Ichimoku lines indicate the continuation of the upward movement. The targets for the long positions are 1.0670 and 1.0700.

Anastasiya Glushkova
Analyst of LiteForex Group of Companies

[LiteForexTeam]

EUR/USD: general analysis

Current trend

On the first Monday of December the pair EUR/USD corrected to the level of 38.2% Fibonacci (1.3536), but failed to break down this level. The USD was supported by favourable US statistics: business activity index in the US manufacturing sector was above forecast and previous level; spending on construction has also increased.
Today the pair is trading upward near the level of 1.3550; however, later, European currency can slightly weaken amid the decline in the EU producer price index.
Tomorrow, US news block will be released, which can trigger the rise in the US currency and the decline in Euro against the USD. Technically, further correction is possible up to the level of 50.0% Fibonacci (1.3509), which is nearing the bottom limit of the channel. Histogram of MACD indicator is in the negative zone, the signal line is preparing to cross the zero line from top to bottom, forming a sell signal.

Support and resistance

The pair will receive support from the level of 1.3536. Yesterday the pair failed to consolidate below this level. Resistance levels: 1.3569 and 1.3578, which are located near moving average of “Bollinger bands”. If this level is exceeded, next resistance level will be at the local highs of 1.3621.

Trading tips

As a trading strategy I would recommend to open short positions. Pending orders to sell can be placed near resistance level of 1.3569. In case of breakdown of the level of 1.3509, trend reversal is possible with further bearish movement.



Kamil Avad
Analyst of LiteForex Group of Companies.

[LiteForexTeam]

Forex: Ichimoku Clouds. Review of USD/CHF

USD/CHF, H4

On the four-hour chart Tenkan-sen line has crossed Kijun-sen from above under the cloud, indicating new wave of the downward movement. Chinkou Span line is approaching the price chart from below once again; current cloud is descending. The pair wasn’t able to reach the cloud and went down, however it is rising back to the Tenkan-sen line. Kijun-sen line is the closest resistance level at 0.9065. The pair will meet a support at the level of 0.9030 (previous low of Chinkou Span line).



USD/CHF, H4, D1

Let’s look at the daily chart. Tenkan-sen line has crossed Kijun-sen from above within the cloud, giving a weak signal to sell. Chinkou Span line is approaching the price chart from above; current cloud is ascending. The pair is still trading within the cloud; its lower border is a support level at 0.9062. The closest resistance level is Tenkan-sen line at 0.9085.



Key levels

Support levels: 0.9030, 0.9026.
Resistance levels: 0.9065, 0.9085.

Trading tips

On the four-hour chart we’ve got a signal to sell from Tenkan-sen and Kijun-sen lines, the target for the short positions is 0.9030. On the daily chart the price is still within the cloud, pending sell orders can be placed below the lower border of the cloud (0.9026).

Anastasiya Glushkova
Analyst of LiteForex Group of Companies