LiteForex Market Analytics

[LiteForexTeam]

GBP/USD: USD continues to lose positions

Current trend

Yesterday morning the Pound continued to strengthen against the USD and reached the level of 1.6750. Prior to the release of the minutes of the US FOMC, the pair calmed down and traded in the narrow channel. Many investors waited for the positive comments; however it did not happen. Members of the Open Market Committee made just guarded and general comments. First of all, most of the FOMC members are concerned that inflation may not return to a target level of 2%. Slowdown of economic growth has been explained by bad weather last winter. Investors’ positive expectations have not been confirmed. The pair reached key resistance level and local highs of 1.6810, and then slightly pulled back.
Today, the decision of the Bank of England on interest rate and volume of asset purchase program will become known. Federal budget of the USA and number of initial applications for unemployment benefits will become will be also released today. It is unlikely that interest rate or volume of asset purchase program will be changed. Comments of the Bank of England will be of interest. Regulator will give assessment of economic situation in the country and forecast for the further development.

Support and resistance

The pair has stopped at the key resistance level of 1.6810. The rise in investors’ interest and support from fundamental news will be required in order to break down this level. The pair is likely to experience correction down to the level of 1.6700, in the near future and after that new ascending wave may develop.
Support levels: 1.6700, 1.6660, 1.6600 and 1.6570.
Resistance levels: 1.6810, 1.6900 and 1.6950.

Trading tips

It is recommended to open short positions with stop-loss at 1.6850 and take profit at 1.6660.



Dmitry Likhachev
Analyst of LiteForex Group of Companies

[LiteForexTeam]

Forex: Ichimoku Clouds. Review of XAG/USD

XAG/USD, H4

Let’s look at the four-hour chart. Tenkan-sen line is going to cross Kijun-sen from below, giving a signal to buy. Chinkou Span line is above the price chart; Senkou Span A and Senkou Span b lines have merged before the cloud reversal. The pair has broken through the cloud is still growing. Kijun-sen line (19.91) is the closest support level. One of the previous maximums of Chinkou Span line is expected to be a resistance level at 20.47.



XAG/USD, D1

On the daily chart Tenkan-sen line is below Kijun-sen, both lines are horizontal. Chinkou Span line is below the price chart from; current cloud is descending. After long fall the pair has been corrected above Tenkan-sen line (19.91), which is now a support level. The closest resistance level is Senkou Span B line (20.33).



Key levels

Support levels: 19.91.
Resistance levels: 20.33, 20.47.

Trading tips

On the four-hour chart we’ve got a signal to buy, on the daily chart the upward movement is a mere correction. However, long trades can be opened at current price with targets at 20.33 и 20.47.

Anastasiya Glushkova
Analyst of LiteForex Group of Companies

[LiteForexTeam]

Forex: Ichimoku Clouds. Review of USD/CAD

USD/CAD, H4

On the four-hour chart Tenkan-sen line is below Kijun-sen, red line has turned up, while the blue one remains horizontal. Chinkou Span line is below the price chart; current cloud is descending. The pair is being corrected and is trading around Kijun-sen line. Tenkan-sen line is the closest support level at 1.0903. Resistance level is the lower border of the cloud at 1.1000.



USD/CAD, D1

At the daily chart Tenkan-sen line is below Kijun-sen, both lines are horizontal. Chinkou Span line is below the price chart, current cloud is still descending. The pair is trading within the cloud, lower border of which is a strong support level at 1.0903. The closest resistance level is Tenkan-sen line (1.0964).



Key levels

Support levels: 1.0903.
Resistance levels: 1.0964, 1.1000.

Trading tips

On the four-hour chart long correction can lead to the trend reversal. Buy positions can be opened as soon as Tenkan-sen crosses Kijun-sen or Chinkou Span crosses the price chart. On the daily chart the signal to sell will appear if the price consolidates below 1.0903.

Anastasiya Glushkova
Analyst of LiteForex Group of Companies

[LiteForexTeam]

EUR/USD: Deep correction is expected

Current trend

The pair EUR/USD is trading neat key resistance level of 1.3900. Weakness in the USD makes the rise in Euro possible; however Euro as well as other counterparts of the USD (GBP, AUD, NZD), has reached the local highs and key resistance level, which means that investors will start to buy oversold USD. In addition, high exchange rate of Euro is not favourable for the leading exporters of Europe. Another fact suggesting the decline in the pair EUR/USD is strong data on US retail sales, which will be released at the beginning of next week.

Support and resistance

Following significant rise, the pair may experience correction to the level of 1.3830. The rise in demand for the USD and positive US statistics on producer price index, which will be released today, is going to put strong pressure on the pair. In the medium-term the pair is likely to go up to the local highs and further up. The pair will continue to strengthen amid slowdown of economic growth rate in the USA. Indicators confirm the scenario of further rise in the pair.

Support levels: 1.3830, 1.3800, 1.3770 and 1.3700.
Resistance levels: 1.3900, 1.3965, 1.4010, 1.4050 and 1.4100.

Trading tips

In the current situation it makes sense to place pending long positions from the level of 1.3830 (1.3800) with take profit at the level of 1.3960.



Dmitry Likhachev
Analyst of LiteForex Group of Companies

[LiteForexTeam]

AUD/USD: general review

Current trend
The rise in the pair AUD/USD has slightly slowed down amid positive US macro-statistics. Consumer confidence index rose to 82.6 points against expectations of 81 points. The pair is also under pressure from liquidity of long positions, as previous steady rise has created attractive conditions for investors to take profit. Today, investors will pay attention to the US statistics, including the data on retail sales (15:30 GMT+3).

Support and resistance
Support levels: 0.9382, 0.9360, 0.9345 and 0.9325.
Resistance levels: 0.9410, 0.9440 and 0.9460.

Trading tips
On the four-hour chart Bollinger bands demonstrate slight divergence showing the lull in the market. MACD histogram is in the positive zone but its volumes are decreasing, suggesting the increase in sellers’ influence. It is likely that the price will slowly go down. Sell positions are recommended after breakdown of the level of 0.9382 with the targets of 0.9360 and 0.9345.



Vadim Smarzh
Analyst of LiteForex Group of Companies

[LiteForexTeam]

GBP/USD: deep correction and new wave of growth

Current trend
Last week the pair reached key resistance level of 1.6810. At this level many investors took profit of long positions and opened short positions. Interest to the cheap USD has increased and demand for the American currency has grown significantly. Additional pressure on the pair was caused by favourable data on the US labour market. Last Friday the pair fell to the level of 1.6710. The main catalysts of the movement in the pair will be US stock status report.

Support and resistance
The pair is likely to stay in the ascending channel and experience deep correction to support levels of 1.6700, 1.6660 and 1.6600. Positive data on the US retail sales will support the USD and the pair will resume the rise. Target level in the medium-term is 1.6900.
Support levels: 1.6700, 1.6660, 1.6600, 1.6570, 1.6550 and 1.6470.
Resistance levels: 1.6810, 1.6900, 1.6950 and 1.7000.

Trading tips
It is recommended to open long pending positions from the level of 1.6660 with take profit at 1.6900.



Dmitry Likhachev
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. Обзор XAU/USD

XAU/USD, H4

Рассмотрим четырёхчасовой график. Линии Tenkan-sen и Kijun-sen сближаются над облаком в преддверии образования фигуры разворота тренда. Линия Chinkou Span пересекает график цены сверху, текущее облако остаётся нисходящее. Пара пробила линии Tenkan-sen и Kijun-sen, последняя из которых становится уровнем сопротивления (1315.78). Следующим препятствием на пути цены вниз окажется верхняя граница облака (1301.27).



XAU/USD, D1

На дневном графике линия Tenkan-sen пересекла Kijun-sen сверху вниз над графиком, образовав фигуру разворота «Мёртвый крест». Под давлением креста пара вошла в облако и торгуется вдоль его верхней границы, которая является уровнем сопротивления (1317.19). Линия Chinkou Span располагается под графиком цены, текущее облако — восходящее. Ближайшим уровнем поддержки является линия Tenkan-sen (1306.16).



Key levels

Уровни поддержки: 1306.16, 1301.27.
Уровни сопротивления: 1315.78, 1317.19.

Trading tips

На четырёхчасовом графике мы получили сигнал на продажу, целью коротких позиций является уровень 1301.27.

Anastasiya Glushkova
Analyst of LiteForex Group of Companies

[LiteForexTeam]

EUR/USD: the rise in demand for the USD won’t last long

Current trend

On Monday the America currency rose against major currencies due to the increasing interest to the USD among investors. Additional pressure to the pair EUR/USD was caused by pessimism, expressed by the head of ECB in regards to high rate of Euro. Following the release of European manufacturing output, the pair fell down and consolidated at the level of 1.3810. It became known that industrial output in February was +0.2%, which was below the forecast of +0.3%. Today attention shall be paid to the US key data on consumer price index and the speech of the head of the US Fed, Janet Yellen.

Support and resistance

The pair maintains position in the ascending channel; however the rise in demand for the USD will last only temporarily. In the medium-term the pair EUR/USD will go up to resistance levels of 1.3900 and 1.3960.
Support levels: 1.3800, 1.3770, 1.3700, 1.3630 and 1.3600.
Resistance levels: 1.3830, 1.3900, 1.3960 and 1.4000.

Trading tips

It is recommended to place pending long positions with take profit at the level of 1.3960.



Dmitry Likhachev
Analyst of LiteForex Group of Companies

[LiteForexTeam]

Forex: Ichimoku Clouds. Review of XAU/USD

XAU/USD, H4

Let’s look at the four-hour chart. Tenkan-sen and Kijun-sen lines are getting closer above the cloud prior to the formation of trend reversal pattern. Chinkou Span line is crossing the price chart from above; current Kumo-cloud is descending. The pair has broken down Tenkan-sen and Kijun-sen lines; the latter has become a resistance level (1315.78). The next obstacle for the price on its way down will be the upper border of the cloud at 1301.27.



XAU/USD, D1

On the daily chart Tenkan-sen line has crossed Kijun-sen from above, forming Dead Cross pattern. Chinkou Span line is below the price chart from above, current cloud is ascending. Under the pressure of the Cross pair has entered the cloud, upper border of which is a resistance level at 1317.19. The closest support level is Tenkan-sen line (1306.16).



Key levels

Support levels: 1306.16, 1301.27.
Resistance levels: 1315.78, 1317.19.


Trading tips

On the four-hour chart we’ve got a signal to sell. Target for the short positions is 1301.27.

Anastasiya Glushkova
Analyst of LiteForex Group of Companies