Forex Analysis by LiteForex

[LiteForexNews]

GBP/USD: general analysis

Current trend

Ahead of the BoE Governor Mark Carney’s appearance, the pair came under pressure when Philip Hammond, UK Chancellor of the Exchequer, suggested extension of the BoE’s QE program. The pair, however, then recovered almost all it losses amid the speech of the head of the British regulator. Mark Carney expressed concerns over the depreciation of the national currency. A “fairly substantial” fall in the Pound will be taken into account when deciding on interest rates, he said.

Tomorrow particular attention needs to be paid to data on UK’s third-quarter GDP figures. Experts suggest that Britain’s economic growth slowed down from 0.7% to 0.3% that could pressure the Pound. In the afternoon, the American currency, on its part, could gain support amid the publication of strong data on orders for durable goods in the US.

Support and resistance

On the 4-hour chart, the price has not managed to consolidate above the strong resistance level of 1.2210. Bollinger Bands is moving down while the price range has been showing almost no changes. MACD histogram remains in the region of the zero line. Stochastic is approaching the border of the overbought zone.
The indicators recommend waiting for clearer trading signals.
Support levels: 1.2184, 1.2161, 1.2125, 1.2082.
Resistance levels: 1.2210, 1.2244, 1.2259, 1.2283, 1.2310, 1.2330.

Trading tips

Short positions can be opened from the level of 1.2190 with the target at 1.2115 and stop-loss at 1.2230. Validity – 1-2 days.
Long positions can be opened from the level of 1.2250 with the target at 1.2330 and stop-loss at 1.2230. Validity – 2-4 days.

 

[LiteForexNews]

EUR/USD: general analysis

Current trend
Euro continues to strengthen slightly against the US dollar. To date, the pair is trading near the resistance level 1.0930, if the level is broken, the next target will be 1.0945. Today, a rise in volatility may occur with the opening of the US market, when unemployment claims and orders for durable goods will be published. According to preliminary estimates, the first indicator will drop to 255 thousand, while the second one will increase by 0.1%.
If the data come out better than the forecast, then we should expect the growth of the US currency as good statistics will be the signal for the Fed to increase the interest rate. According to preliminary estimates, the probability of changes in monetary policy at the November meeting does not exceed 50%.

Support and resistance
The nearest resistance level is 1.0930.
The level of support is 1.0911.

Trading tips
Long positions can be opened at level of 1.0930 with stop-losses around 1.0911 and targets at 1.0945.

 

[LiteForexNews]

AUD/USD: general review

Current trend

The US Dollar continues strengthening against all major rivals amid expectations of market participants of an interest rate hike by the Fed in the nearest future. Today, after the publication of positive data on the Producer Price Index in Australia, the pair rose but did not manage to consolidate above a strong resistance at 0.7600 and resumed its fall.

Today extra attention needs to be paid to data on the US GDP for the third quarter of the year. According to the forecasts of economists, on a year-to-year basis the index will show a 2.5% growth. At the same time, weak data might significantly pressure the US Dollar.

Support and resistance

On the 4-hour chart, the instrument is trading at the lower line of Bollinger Bands while bands are directed horizontally and the price range is widening. MACD histogram is in the negative zone and its volumes are growing. Stochastic is about to leave the oversold zone.
The indicators recommend short positions.
Support levels: 0.7137, 0.7565, 0.7556, 0.7544, 0.7534.
Resistance levels: 0.7597, 0.7607, 0.7622, 0.7643, 0.7652, 0.7668, 0.7679.

Trading tips

Short positions can be opened from the level of 0.7560 with the target at 0.7530 and stop-loss at 0.7576. Validity – 1-2 days.
Long positions can be opened from the level of 0.7575 with target at 0.7610, 0.7630 and stop-loss at 0.7555. Validity – 1-2 days.

 

[LiteForexNews]

GBP/USD: general review

Current trend
The pair GBP/USD continues to move in a sideways channel of 1.2150-1.2250. In recent days the tool has reached the upper border of the channel, but by the morning of November 1st growth slowed down, and soon we can expect the correction of the upward movement.
The main event in the economic calendar today is the news from the US at 17:00 (GMT+2). Experts predict a rise in the acceleration index of inflation to 52 points, and the growth in index of business activity in the manufacturing sector to 51.7 points. These data are positive for the US economy and will most probably strengthen the US currency.

Support and resistance
On the four-hour chart the price is at the upper line of Bollinger bands, the bands themselves begin to expand. In this case, the correction to the middle line of the indicator is most likely, but the continuation of the uptrend is also possible.
Resistance levels: 1.2250, 1.2320, 1.2350, 1.2400, 1.2450.
Support levels: 1.2210, 1.2200, 1.2190, 1.2135, 1.2100.

Trading tips
It is recommended to open long positions at the current price with the target at the level of 1.2200 and a stop-loss at 1.2280. BUY STOP orders should be placed at the level of 1.2280 with the aim of 1.2320 and stop-loss of 1.2250.

 

[LiteForexNews]

XAU/USD: technical analysis

XAU/USD, D1
On the daily chart the pair is testing the support level of 1292.00. The indicator "Bollinger Bands" is moving sideways, while the price range significantly expanded, indicating a continuation of the current trend. Histogram MACD is near zero line, its volumes start to grow, forming a weak buy signal. Stochastic is approaching to the border of the overbought area.

XAU/USD, H4
On the 4-hour chart the pair is trading in the upper Bollinger band. Indicator’s lines are moving upwards, while the price range has increased, pointing to the preservation of the current trend. The MACD histogram is close to its peak in the positive zone, its volumes continue to grow, maintaining a buy signal. Stochastic is close to the oversold area.

Key levels
Support levels: 1241.11, 1245.96, 1256.80, 12.6181, 1267.31, 1271.84, 1282.68, 1288.21.
Resistance Levels: 1296.51, 1303.20, 1308.02, 1313.91, 1318.99, 1328.36.

Trading tips
Long positions can be opened at the level of 1300.00 with the targets at 1308.00, 1311.20 and stop loss at the level of 1293.00. Implementation period – 1 day.
Short positions should be opened at the current price with the targets of 1286.50, 1278.70 and stop loss at the level of 1296.55. Implementation period – 1-2 days.

 

[LiteForexNews]

XAU/USD: technical analysis

XAU/USD, D1
On the daily chart the pair is testing the support level of 1292.00. The indicator "Bollinger Bands" is moving sideways, while the price range significantly expanded, indicating a continuation of the current trend. Histogram MACD is near zero line, its volumes start to grow, forming a weak buy signal. Stochastic is approaching to the border of the overbought area.

XAU/USD, H4
On the 4-hour chart the pair is trading in the upper Bollinger band. Indicator’s lines are moving upwards, while the price range has increased, pointing to the preservation of the current trend. The MACD histogram is close to its peak in the positive zone, its volumes continue to grow, maintaining a buy signal. Stochastic is close to the oversold area.

Key levels
Support levels: 1241.11, 1245.96, 1256.80, 12.6181, 1267.31, 1271.84, 1282.68, 1288.21.
Resistance Levels: 1296.51, 1303.20, 1308.02, 1313.91, 1318.99, 1328.36.

Trading tips
Long positions can be opened at the level of 1300.00 with the targets at 1308.00, 1311.20 and stop loss at the level of 1293.00. Implementation period – 1 day.
Short positions should be opened at the current price with the targets of 1286.50, 1278.70 and stop loss at the level of 1296.55. Implementation period – 1-2 days.

 

[LiteForexNews]

USD/CAD: general analysis

Current trend
Today the major event is the US presidential election. Strengthening of the Canadian Dollar, however, is caused mainly by a growth in oil prices. Thus, Brent crude oil managed to overcome the psychological level of $46 per barrel.
At present, dynamics of the pair depend largely on information about the process of the US presidential election, and any news about the high chance of Hillary Clinton winning could support the US Dollar. Markets are now stuck as investors are refraining from entering trades due to the high level of risk.

Support and resistance
The instrument is correcting in the upper part of Bollinger Bands. The indicators has turned up while the price range is widening that suggests the trend continuation. MACD histogram has reached its high in the positive zone and is keeping a buy signal. Stochastic is about to enter the oversold zone.
The indicators recommend long positions.
Support levels: 1.3327, 1.3298, 1.3250, 1.3206, 1.3165, 1.3110.
Resistance levels: 1.3390, 1.3427, 1.3460, 1.3507.

Trading tips
Long positions can be opened from the level of 1.3385 with the target at 1.3460 and stop-loss at 1.3360. Validity – 1-3 days.
Short positions can be opened from the level of 1.3340 with the target at 1.3250 and stop-loss at 1.3360. Validity – 1-2 days.

 

[LiteForexNews]

XAU/USD: technical analysis

XAU/USD, D1
On the daily chart, the instrument is trading on the middle MA of Bollinger Bands. The price remains just above its moving averages that are horizontal. The RSI is approaching its most recent resistance. The Composite is testing its longer MA.
XAU/USD, H4
On the 4-hour chart, the instrument is trading in the upper Bollinger band. The price remains above its moving averages that are turning up. The RSI is testing its longer MA. The Composite turned down having failed its beginning of the month resistance.

Key levels
Support levels: 1291.87 (beginning of the week gap), 1275.32 (local lows), 1250.75 (61.8% Fibonacci retracement).
Resistance levels: 1307.62 (local highs), 1311.67 (July lows), 1336.05 (July 2014 highs).

Trading tips
The price keeps testing its long-term descending trendline. There is a chance of another retest.
Long positions can be opened from the level of 1313.67 with the target at 1333.05 and stop-loss at 1305.62. Validity – 3-4 days.
Short positions can be opened from the level of 1288.87 with the target at 1275.32 and stop-loss at 1294.41. Validity – 2-3 days.

 

[LiteForexNews]

BRENT: technical analysis

BRENT, H4

On the 4-hour chart, the price rebounded from the strong support level of 46.05. Bollinger Bands is trying to turn down while the price range keeps on widening that portends a continuation of upward dynamics. MACD histogram is in the negative zone, its volumes are falling. Stochastic is leaving the overbought zone with a strong sell signal.

BRENT, D1

On the daily chart, the instrument is correcting in the lower part of Bollinger Bands. The indicator is directed down while the price range is widening that marks a strong chance of a continuation of the current trend. MACD histogram is in the negative zone, its volumes are growing and forming a strong sell signal. Stochastic is moving towards the overbought zone.

Key levels

Support levels: 46.01, 45.41, 45.02, 44.35.
Resistance levels: 47.00, 47.77, 48.34, 48.84, 49.44, 50.00.

Trading tips

Long positions can be opened from the current level with targets at 47.50, 48.00 and stop-loss at 45.80. Validity – 1-2 days.
Short positions can be opened from the level of 47.05 with the target at 45.50 and stop-loss at 47.50. Validity – 1-2 days.

 

[LiteForexNews]

XAU/USD: technical analysis

XAU/USD, H4

On the 4-hour chart, the instrument is trading within the lower part of Bollinger Bands. The indicator is directed down while the price range is widening that portends a continuation of the current trend. MACD histogram remains in the negative zone, its volumes continue growing. Stochastic is about to enter the oversold zone.

XAU/USD, D1

On the daily chart, the instrument is trading in the lower part of Bollinger Bands. The indicator has turned horizontally while the price range is narrowing that marks the possibility of a trend reversal. MACD histogram is hovering in the region of the zero line. Stochastic has entered the oversold zone.

Key levels

Support levels: 1252.99, 1250.45, 1247.69, 1243.92.
Resistance levels: 1296.51, 1303.20, 1308.02, 1313.91, 1318.99, 1328.36.

Trading tips

Short positions can be opened from the current level with targets at 1247.70, 1245.80 and stop-loss at 1256.50. Validity – 1 day.
Long positions can be opened from the level of 1247.65 with targets at 1264.60, 1273.00 and stop-loss at 1241.45. Validity – 1-2 days.

 

[LiteForexNews]

XAU/USD: technical analysis

XAU/USD, D1

On the daily chart, the instrument is trading below the lower line of Bollinger Bands. The price remains below its moving averages that start turning down. The RSI entered the oversold zone. The Composite is approaching its October support. Both indicators are forming a divergence with the price suggesting a growth possibility.

XAU/USD, H4

On the 4-hour chart, the instrument is trading on the lower line of Bollinger Bands. The price remains below its moving averages that turned down. The RSI is forming a “double bottom” having entered the oversold zone, suggesting a growth possibility. The Composite is about to retest its longer MA.

Key levels

Support levels: 1212.84 (50% Fibonacci retracement), 1205.65 (June lows), 1174.04 (38.2% retracement).
Resistance levels: 1235.55 (local highs), 1250.75 (61.8% retracement), 1261.03 (local highs).

Trading tips

The price is testing its 50% retracement. There is a chance of an upward rebound.
Long positions can be opened form current prices with targets at 1235.55, 1250.75 and stop-loss at 1212.84. Validity – 3-4 days.
Short positions can be opened from the level of 1205.65 with the target at 1174.04 and stop-loss at 1212.84. Validity – 3-4 days.

 

[LiteForexNews]

NZD/USD: general analysis

Current trend

The NZ Dollar continues trading down against its US counterpart. The currency is being
pressured by several factors. Firstly it should be mentioned that the price of oil has fallen to the
level of $44-45 per barrel. Moreover, an earthquake hit New Zealand and has caused damage
estimated at about $1.4 billion. It is quite obvious that reconstruction work will put much
pressure on the country’s economy, thus affecting the national currency.
At the same time, despite Donald Trump’s surprising victory in the US presidential election, the
American Dollar continues strengthening against other major currencies as many investors still
expect the Federal Reserve to raise interest rates at its next monetary policy meeting in December.

Support and resistance

The nearest support level is at 0.7071.
The nearest resistance level is at 0.7177.

Trading tips

Short positions can be opened from the level of 0.7071 with the target at 0.7000 and stop-loss
at 0.7177

 

[LiteForexNews]

XAG/USD: technical analysis

XAG/USD, D1

On the daily chart the pair is trading near the lower boundary of the indicator "Bollinger
Bands", a correction of downward movement is expected. MACD histogram is close to zero line,
its volume is gradually increasing, the signal line moves horizontally, crossing the body of
histogram – the indicator gives a weak sell signal. Stochastic is in the oversold zone on the
border with neutral zone, the oscillator is ready to reverse the lines, so we will get a strong buy
signal soon.

XAG/USD, H4

On the 4-hour chart the tool is growing towards the middle line of the indicator "Bollinger
Bands". MACD histogram is in the negative zone, gradually reducing the volume; the signal line
is outside of the body of the histogram. The indicator doesn’t give any specific signal for action.
Stochastic is in the neutral zone near the border with the overbought area, in case of breaking
the border and further reverse of the oscillator lines, we’ll receive a signal to sell.

Key levels

Support levels: 16.65, 16.30, 15.80.
Resistance Levels: 17.20, 17.85, 18.20, 18.85, 19.25, 19.60, 20.10, 20.95.

Trading tips

According to technical indicators, it is preferable to open long positions at the price of 17.25
with the targets 17.85, 18.20, 18.85. Stop-loss should be placed at 16.90. Implementation
period: 1-3 days.
Positions to sell can be opened at the level of 16.60, with target at 16.00 and stop-loss at 16.90.
Implementation period: 1-3 days.

 

[LiteForexNews]

NZD/USD: general analysis

Current trend

Since the opening of the trading session New Zealand dollar has been slightly growing against
US currency. Current rate is around 0.7098 level. The nearest support level is 0.7071 and
resistance is at 0.7145 level.
Many traders assume that this is a slight correction, and the downward trend will keep going.
The high possibility of the interest rate hike can be announced on the FRS meeting on 13-14th
of December and will support US dollar. Economists assume that American economy can get an
additional momentum, if the new President invests more into infrastructure development and
carry tax reforms. It is also worth noting that consumer price indices, on which FRS decision is
based, have also grown up to 1.2% in September. In general, American economy is gaining
momentum and is reaching pre-crisis conditions, which has a positive effect on the US dollar.

Support and resistance

The nearest resistance level is at 0.7145.
Support level is at 0.7071.

Trading tips

It is recommended to open short positions at the level of 0.7071 with the target at 0.7025 and
stop loss at 0.7145

 

[LiteForexNews]

SPX: technical analysis

SPX, D1

On the daily chart the index is rising alongside the upper border of the Bollinger Bands indicator, trading range has expanded. The MACD histograms lays in positive area, its volumes are growing, the signal line crosses the zero line and the histogram body downwards, giving a strong buy signal. The Stochastic is in overbought area and goes alongside the neutral zone border, the oscillator lines are directed downwards. In case of border crossing there will be a strong sell signal.

SPX, H4

On the 4-hour chart the index lays between middle and upper borders of the Bollinger Bands indicator, still rising. The MACD histograms is in positive area, its volume almost stagnated at the level of 6.7, the signal line lays outside the histogram body, giving no clear signal. The Stochastic is in overbought area near the neutral area border. In case of breakout of the border there will be a strong sell signal.

Support and resistance

Support levels: 2165.1, 2151.1, 2127.3, 2106.7, 2081.2.
Resistance levels: 2195.0.

Trading tips

It is recommended to open long positions at the level of 2183.0 with the target at 2195.0. Stop loss is at 2180.0. Implementation period: 1-3 days.
It is recommended to open short positions at the level of 2165.0 with the target at 2151.0. Stop loss is at 2172.0. Implementation period: 1-3 days.

 

[LiteForexNews]

YM: technical analysis

YM, D1

On the daily chart, the instrument slowed down its growth, which had been developing along the upper line of Bollinger Bands. The price range of the indicator remains wide. MACD histogram is in the negative zone, and its volumes are gradually growing and keeping a strong buy signal. Stochastic has left the overbought zone with a sell signal.

YM, H4

On the 4-hour chart, the instrument is trading along the meddle line of Bollinger Bands within a narrow price range. MACD histogram is in the positive zone, and its volumes are gradually falling and forming a sell signal. Stochastic turned up in the neutral zone.

Key levels

Support levels: 18802.3, 18645.3, 18439.9, 18319.0, 18059.3, 17884.1, 17654.5, 17479.3.
Resistance levels: 18965.5.

Trading tips

According to the indicators, long positions are preferable and can be opened from the level of 18892.0 with the target at 18965.5 and stop-loss at 18850.0. Validity – 1-3 days.
Short positions can be opened from the level of 18800.0 with the target at 18650.0 and stop-loss at 18850.0. Validity – 1-3 days.

 

[LiteForexNews]

FDAX: general analysis

Current trend

Germany’s DAX is trading slightly up. The European stock markets came under pressure after Mario Draghi, ECB President, said that inflation remained far from the target level and eurozone’s economy was teetering on the edge of deflation. The regulator continues keeping an eye on the situation and can provide additional stimulus if the need arises. It should also be noted that news about Volkswagen’s plans to cut 30,000 jobs has had a negative impact on the German index.

Today amid the lack of important macroeconomic statistics, no high volatility is expected. Attention needs to be paid to data on consumer confidence in the eurozone, due at 5:00 pm (GMT+2). However, preliminary estimate for November is unlikely to have any strong influence on the market.

Support and resistance

The nearest support level is at 10648.6.
The nearest resistance level is at 10748.4.

Trading tips

Short positions can be opened from the level of 10648.6 with the target at 10582.0 and stop-loss at 10748.4.

 

[LiteForexNews]

USD/CAD: general review

Current trend

On Tuesday the USD/CAD pair was strengthening amid favorable macroeconomic data from the US. In particular, existing home sales grew 2% in October that was substantially better than economists had expected. In Canada, retail sales, excluding automobiles, were flat in September against expectations for a 0.5% increase suggesting a decline in consumer confidence.

Today attention needs to be paid to data on durable goods orders and jobless claims in the US. Moreover, the EIA releases its crude inventory change report that is likely to result in higher market volatility. The US Dollar can come under pressure as the data is expected to show a drawdown of 0.250 million barrels.

Support and resistance

On the 4-hour chart, the pair is falling towards the lower line of Bollinger Bands. MACD histogram is in the negative zone, and its volumes are gradually falling. Stochastic is turning down at the border of the overbought zone.
Support levels: 1.3415, 1.3385, 1.3360, 1.3325, 1.3295, 1.3265.
Resistance levels: 1.3470, 1.3515, 1.3560, 1.3585.

Trading tips

Short positions can be opened from the level of 1.3415 with the target at 1.3360 and stop-loss at 1.3445.
Long positions can be opened from the level of 1.3470 with the target at 1.3550 and stop-loss at 1.3430.
Validity – 1-3 days.

 

[LiteForexNews]

XAG/USD: general analysis

Current trend

During today’s trading session the pair reached the 5-month minimum (16.15) and was corrected up to 16.50. The volatility of silver is low due to the absence of investors in the market because of the holidays in the USA.

US dollar continues to pressure silver. The traders are waiting for the interest rate increase in December. Yesterday the Open Market Committee’s record showed that the Committee majority is sure that the US economy is strong enough for this step.

Support and resistance

XAG/USD is falling within the downward channel. On the daily chart the MACD histogram is in negative zone, its volumes are growing. The %K line of the Stochastic indicator has crossed the %D upwards on the border of the oversold area, showing that the correction is possible.

Support levels: 16.15, 15.80, 15.30.
Resistance levels: 16.50, 16.80, 17.20.

Trading tips

It is recommended to open short positions at the level of 16.10 with the target at 15.80 and 15.30. Stop loss is at 16.20.

It is recommended to open long positions at the level of 16.60 with the target at 17.20. Stop loss is at 16.40. Implementation period: 1 day.

 

[LiteForexNews]

USD/JPY: general analysis

Current trend

After yesterday fall the pair is growing, despite of the favorable to Japan statistics being published. The unemployment rate index didn’t change (3%), overall household spending decreased by 0.4% against the predicted -0.6%, YoY retail trade fell by 0.1%, which has exceed the prediction of -1.2%.

The market is waiting for the USA third quarter GDP data to be published. The indicator is predicted to grow by 0.1%, which reflects positive trend of the economy development. The growth of GDP will assure the investors in the dollar’s strength, and the pair will continue to grow.

Support and resistance

On the daily chart the trend is pointed upwards. The pair is trading near the upper border of the Bollinger Bands indicator.
The MACD histogram is in positive area, its volumes are rising, the signal line crosses its body upwards, giving a buy signal.

The Stochastic is leaving the overbought area, forming a sell signal.
Support levels: 111.00, 108.50, 107.00, 105.20, 104.00, 103.00, 101.10, 100.00, 98.10.
Resistance levels: 112.90, 113.90.

Trading tips

It is recommended to open long positions at the current level of 112.60 with the target at 113.90. Stop loss is at 112.00.
It is recommended to open short positions at the level of 110.80 with the target at 109.00. Stop loss is at 111.50. Implementation period: 1-3 days.