LiteForex Market Analytics

[LiteForexTeam]

EUR/USD: correction is highly possible

Current trend

The pair EUR/USD continues to rise after Non-Farm Payrolls publication. Despite of the increase of new paid workers, the incomes of US citizens have declined down to the level of –0.1%. These stats may be followed by decrease of consumers’ spending and influx of funds. Today the Dollar can get additional support from the US Congress agreement on country budget for 2014. The deficit should decrease by 23 billion dollars.

Support and resistance

We expect the pair to be corrected down to the level of 1.3725 (middle MA of Bollinger Bands indicator). If this level is broken down, the pair will fall to the levels of 1.3705 and 1.3565 (lower MA of Bollinger Bands). Otherwise, the pair will pull back off 1.3725 and go up. On the four-hour chart technical indicators confirm the possibility of the correction. Bollinger bands are directed upwards, however the price chart is moving towards the middle MA. MACD histogram is in positive zone, the signal line is above it. Stochastic lines are directed downwards.

Trading tips

It is recommended to open short trades with targets at 1.3725. Pending buy orders can be placed at the same level.



Dmitriy Zolotov
Analyst of LiteForex Group of Companies

[LiteForexTeam]

Forex: Ichimoku Clouds. Review of GBP/USD

GBP/USD, H4

On the four-hour chart Tenkan-sen line is above Kijun-sen, both lines are horizontal. The pair is still trading in a wide sideways channel, trying to consolidate above Tenkan-sen right now. Chinkou Span line is above the price chart; current Kumo-cloud is ascending, although its width is only 9 points. The closest resistance level is the previous maximum of Chinkou Span line at 1.6447. Support levels are Tenkan-sen (1.6398) and Kijun-sen (1.6379) lines.



GBP/USD, H4, D1

Let’s look at the daily chart. Tenkan-sen line is above Kijun-sen, and they are both horizontal. Chinkou Span line is above the price chart, current Kumo-cloud is ascending. The pair has been corrected to the Tenkan-sen line, but couldn’t break it down and is rising again. Tehnak-sen line becomes the closest support level at 1.6379. One of the previous maximums of Chinkou Span line is expected to be a resistance level at 1.6525.



Key levels

Support levels: 1.6398, 1.6379.
Resistance levels: 1.6447, 1.6525.

Trading tips

On the four-hour chart the price has returned above Tenkan-sen and Kijun-sen lines. Daily chart confirms the continuation of the Bullish trend. The targets for the long positions are 1.6447 and 1.6525.

Anastasiya Glushkova
Analyst of LiteForex Group of Companies

[LiteForexTeam]

NZD/USD: RBNZ proclaims stable economic recovery

Current trend

The pair NZD/USD has strengthened after Reserve Bank of New Zealand meeting. It was announced that GDP will exceed the level of 3% this year, which is the best rate after crisis. Head of RBNZ said that recovery pace is moderate; however export prices are growing, promising fast development. RBNZ has also decided to keep interest rate at the same level of 2.5%, but hasn’t ruled out the possibility of the rise. Interest rate can be increased at the beginning of the next year.

Support and resistance

The pair is trading around middle MA of Bollinger Bands indicator (0.8280). If the price consolidates above it, the pair can go up to the levels of 0.8300 and 0.8330. Although, the correction to the levels of 0.8255 and 0.8235 (lower MA of Bollinger Bands) is more likely. Technical indicators confirm the rise. MACD histogram is in positive zone, its volumes are increasing. Stochastic lines are directed upwards.

Trading tips

Long positions with targets at 0.8330 should be opened above 0.8290. Short trades with targets at 0.8235 can be opened at 0.8270.



Dmitriy Zolotov
Analyst of LiteForex Group of Companies

[LiteForexTeam]

Forex: Ichimoku Clouds. Review of EUR/USD

EUR/USD, H4

On the four-hour chart Tenkan-sen and Kijun-sen lines have are getting closer above the cloud prior to trend reversal formation. Chinkou Span line is approaching the price chart from above; current Kumo-cloud is ascending. After long rise the pair has pulled back under Tenkan-sen (1.3770) and Kijun-sen (1.3752) lines, which became resistance levels. The next obstacle for the price on its way down will be the upper border of the cloud at 1.3686.



EUR/USD, H4, D1

Let’s look at the daily chart. Tenkan-sen line has crossed Kijun-sen from below within the cloud, giving a signal to buy. The pair has broken through the cloud, but is now being corrected down. Chinkou Span has crossed the price chart from below, current cloud has reversed from descending to ascending. Support level is Tenkan-sen line at 1.3667. One of the previous maximums of Chinkou Span line is expected to be a resistance level at 1.3800.



Key levels

Support levels: 1.3686, 1.3667.
Resistance levels: 1.3752, 1.3770, 1.3800.

Trading tips

On the four-hour chart trend reversal is forming, however short positions should be placed after the cross of Tenkan-sen and Kijun-sen lines. On the daily chart we can see a correction of Bullish movement.

Anastasiya Glushkova
Analyst of LiteForex Group of Companies

[LiteForexTeam]

ХAU/USD: general analysis

Current trend

Many investors believe that the decline in gold is caused by the actions in North Korea where mass sale of this precious metal was launched in to overcome economic crisis. According to experts volume of sales can amount to 2 thousand tons for the amount of 8 billion USD. Preliminary data showed that the main buyer of the product is China. In general the year of 2013 is not the best for gold. Losses amounted to 27%. Considerable pressure on gold comes from probability that the US fed can start to reduce quantitative easing programs this year.
Technical indicators show that gold is in the downtrend; at the moment, the only indicator, which shows probability of correction is Williams Percent Range. The range of (-93) shows the gold is oversold and rollback is possible.

Support and resistance

On the daily chart gold has reached the bottom limit of the trading channel at the level of 1224.93. If the “bears” manage to break down this support level, gold will fall to the level of 1200.00. Resistance level is the local highs of 1263.45.

Trading tips

It is advisable to open short positions below support level of 1224.93 with protective orders near 1228.00 and a target of 1200.00.



Dmitry Agurbash
Analyst of LiteForex Group of Companies.

[LiteForexTeam]

AUD/USD: technical analysis

Current trend
Starting from the end of December the pair has been in the descending channel. The decline still continues. Last week the pair AUD/USD has broken down the level of 0.9000, approaching to the lows of the summer at the level of 0.8890, which the “bears” failed to exceed.
Technical indicators show mixed signals. Stochastic is in the overbought zone indicating the decline. Signal line of MACD is leaving histogram indicating probability of correction. All three moving average line are directed downward showing the decline.

Support and resistance
The nearest support levels are 0.8940 and 0.8890; the latter one is the target of the “bears”. Resistance levels are 0.9000, 0.9050, 0.9110 and 0.9150.

Trading tips
In case of breakdown of the level of 0.8890, the pair will continue to decline. If the price consolidates below this level, it will make sense to place sell orders. Long positions can be opened above the level of 0.9000 with the target of 0.9150.



Ilya Lashenko
Analyst of LiteForex Group of Companies

[LiteForexTeam]

GBP/USD: USD will soar up

Current trend
At the end of last week the pair declined amid favourable macro-economic US statistics. Positive data on the labour market and retail sales have supported the USD.
This morning the British currency partly regained the losses reaching the level of 1.6330. As long as important news on British economy is not scheduled for today, attention shall be focused on the American data on business activity index in the manufacturing sector for December and volumes of industrial output in November. If favourable forecast proves to be correct, trend will reverse and downward movement will reach the level of 1.6150.



Support and resistance
Technical indicators show probability of trend reversal and the beginning of the downtrend. MACD histogram fell below the signal line; its volumes are decreasing. The price chart is between Tenkan-sen and Kijun-sen of Ichimoku indicator. The latter line is support level of 1.6150.

Support levels: 1.6200, 1.6150, 1.5920, 1.5880 and 1.5750.
Resistance levels: 1.6340, 1.6400, 1.6450, 1.6540 and 1.6600.


Trading tips

It is recommended to place short positions with profit taking at the level of 1.6150.



Dmitry Likhachev
Analyst of LiteForex Group of Companies

[LiteForexTeam]

Weekly analytical video review for currency pairs EUR/USD, GBP/USD and USD/JPY 16-20 Dec 2013

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

https://www.youtube.com/watch?v=9gNJAT5ZVuo&list=PL0AkDoT530vyjQ_utOoMufN3NfndBfCqg&index=27

[LiteForexTeam]

Forex: Ichimoku Clouds. Review of USD/CAD

USD/CAD, H4

On the four-hour chart Tenkan-sen line has crossed Kijun-sen from above, indicating a new wave of downward movement. Chinkou Span line is below the price chart; current cloud is descending. The pair has broken down the cloud, but slowed down its fall and been corrected to the Tenkan-sen line. The closest resistance level is Kijun-sen line at 1.0615. One of the previous minimums of Chinkou Span line is expected to be a support level at 1.0525.



USD/CAD, H4, D1

At the daily chart Tenkan-sen line is above Kijun-sen, both lines are horizontal. Chinkou Span line is above the price chart; current cloud is ascending. After long rise the price has been corrected under Tenkan-sen line, which becomes a resistance level (1.0634). The closest support level is Kijun-sen line at 1.0560.



Key levels

Support levels: 1.0525, 1.0560.
Resistance levels: 1.0615, 1.0634.

Trading tips

On the four-hour chart we can see a slowdown of the downward trend. It’s a good opportunity to open new sell positions with targets around 1.0525. On the daily chart further movement of the price will be determined by the breakdown of one of the levels: Tenkan-sen or Kijun-sen.

Anastasiya Glushkova
Analyst of LiteForex Group of Companies

[LiteForexTeam]

EUR/USD: analysis and forecast

Current trend

The pair EUR/USD has been trading within a range of 1.3800-1.3720 for two weeks. Investors do not risk entering the market, waiting for the results of FOMC meeting. The regulator is expected to announce the curtailment of QE3 program, although members of FRS can’t find a consensus. Those who are pro-curtailment underline economic recovery and unemployment decrease to 7%. Their opponents remind about inflation growth and propose to prolong soft monetary policy.
The pair won’t probably be volatile today. However publication of Economic Sentiment indices of Germany and Eurozone may give pair some impetus. The indices will most probably grow and make EUR/USD reach upper border of the channel at 1.3800.

Support and resistance

On the four-hour chart technical indicators confirm the possibility of the growth. Bollinger bands are moving sideways; the price chart has pulled back off the middle MA and is going up. MACD histogram is in positive zone and can soon cross the signal line from below. Stochastic lines has crossed and formed a signal to buy.

Trading tips

It is recommended to open long trades at current price with targets at 1.3800. Pending sell orders can be placed at the same level with take-profits around 1.3760.



Dmitriy Zolotov
Analyst of LiteForex Group of Companies