Forex Analysis by LiteForex

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XAU/USD: general review
*
Current trend

After yesterday's fall gold price has restored lost positions and is currently trading at the level of 1268.00. The price of the metal as a safe haven asset is growing, while US dollar is weak after the Fed's refusal to increase the rates this year due to low inflation.

On Friday the market is waiting for a report on the number of non-farm payrolls. NFPR will gain 183K in July against 222K in June. The level of unemployment will drop to 4.3% from 4.4%, and average hourly salary will slightly grow from 0.2% to 0.3% in June, as expected.

Support and resistance

On the H4 chart XAU/USD is consolidating near the 1268.00 mark. The price has returned to the upward channel after a false break-through. *MACD indicator is below the signal line with its volumes reducing, Stochastic lines are in the overbought area and directed to the side.

Resistance levels: 1273.70, 1280.00, 1288.00.
Support levels: 1256.00, 1250.00, 1242.00.

Trading tips

The pair may be bought if the price breaks through 1274.00 with target at 1280.00 and stop-loss at 1272.00.
Short positions should become relevant below the level of 1263.00 with targets at 1250.00 and stop-loss at 1266.00.
Implementation time: 1-2 days.

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SX5E: technical analysis

SX5E, D1

On the daily chart, the instrument is trading in the upper Bollinger band. The price remains above its moving averages that start turning up. The RSI is about to test its strong resistance. The Composite is growing as well.

SX5E, H4

On the 4-hour chart, the instrument is trading in the upper Bollinger band. The price remains just below the SMA200 and above the EMA14, EMA65 and EMA130 that start turning up. The RSI is growing towards the border of the overbought zone. The Composite turned up as well.

Key levels

Support levels: 3462.0 (local lows), 3430.0 (July lows), 3399.0 (April lows).
Resistance levels: 3515.0 (local highs), 3533.0 (July highs), 3552.0 (May lows).

Trading tips

The price is consolidating above its previous descending trendline. The growth is likely to continue.
Long positions can be opened from the level of 3515.0 with targets at 3533.0, 3552.0 and stop-loss at 3502.0. Validity – 3-5 days.
Short positions can be opened from the level of 3462.0 with targets at 3430.0, 3399.0 and stop-loss at 3480.0. Validity – 3-5 days.

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USD/CAD: general analysis

Current trend

The USD/CAD pair is moving within the narrow range, waiting for significant fundamental or economical releases, which can determine the further dynamics. The growth of the pair slowed after significant growth in the end of the last week. The market split into two parts, one considers the strengthening of USD against CAD reflects the decrease of oil prices in the nearest future, the other believes that the pair is in the correction of the strong downward trend, and soon the pair will fall again.

Today traders should pay attention to Q2 Unit Labor Costs publication and Nonfarm Productivity statistics in the USA. In Canada Housing Starts data will be released, which reflect the strength of Canadian housing market and shows the economy state. The decrease against the previous values is expected, which can affect Canadian currency negatively.

Support and resistance

On the 4-hour chart the pair is moving within the narrow range, formed by the upper border and the middle line of Bollinger Bands. MACD is in the positive zone, keeping a signal to open long positions.

Support levels: 1.2660, 1.2635, 1.2600, 1.2550.
Resistance levels: 1.2700, 1.2730, 1.2750.

Trading tips

Long positions can be opened at the current level with the target at 1.2730 and stop loss at 1.2635. Implementation period: 1-3 days.
Short positions can be opened at the level of 1.2600 with the target at 1.2550 and stop loss at 1.2635.
Implementation period: 2-5 days.

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EUR/USD: the pair is decreasing in view of the upcoming inflation data

Current trend

The quotes of EUR/USD are decreasing today. Euro appeared to be under pressure of negative data on the volume of industrial output in France which reduced by 1.1% in June. Moreover, the fall of the pair was facilitated by the investors’ waiting for tomorrow’s data on CPI. The indicator is expected to grow in July from 0.0% to 0.2% MoM and from 1.6% to 1.8% YoY. The correctness of this forecast is proven by the growth of average salary in the USA in July by 0.3%. On the other hand, import prices have been decreasing since January, although the outlook for July is positive as well (the indicator is expected to grow by 0.1% after 2 months of falling). Generally, the possibility of inflation growth in the USA is quite high, but it may not reach the forecast levels.

In the absence of important economic statistics today attention may be pair do the statement by the member of the Fed, head of FRB New York William Dudley in the framework of press briefing dedicated to the issues of salary payment in the region. Geopolitics may also make corrections to the movement of the pair. According to recent data, the US Department of Defense already has a plan of a preventive strike at 20 military objects of North Korea. Further aggravation of the situation between the USA and North Korea may lead to considerable market volatility and the weakening of USD.

Support and resistance

Currently the price is testing an important support level of 1.1700 (Fibo correction 23.6%, Murrey main support level , lower line of Bollinger Bands). Breaking through it may lead to further reduction to 1.1655 and 1.1590 (Fibo correction 38.2%, Murrey level ). One may speak about growth after the consolidation of the price above the level of 1.1755 (Fibo correction 38.2% for the long-term trend, middle line of Bollinger Bands). In this case the price may grow to 2-week maximums at 1.1890.

Support levels: 1.1700, 1.1590, 1.1500.
Resistance levels: 1.1755, 1.1825, 1.1890.

Trading tips

In the current situation short positions should be opened after the price consolidates below 1.1700 with targets at 1.1655 and 1.1590. Stop-loss should be placed at 1.1740.

Long positions will become relevant after the breakout of the level of 1.1755 and the middle line of Bollinger Bands. The targets will be at 1.1825 and 1.1890. Stop-loss should be placed at 1.1710.

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[LiteForexNews]

XAU/USD: general analysis

Current trend

XAU/USD is strengthening due to the poor macroeconomic statistic publication in the USA and political tense between USA and North Korea.

Yesterday the Initial Jobless Claims data were published, which were worse than expected: the index grew from 241 to 244K, as the experts supposed the fall to 240K. In addition, the July Producer Price Index unexpectedly falls by 0.1%, which resulted in the decrease of the YoY indicator. The USD is also under the pressure due to New York Fed’s president William Dudley’s statement, who expressed the fear of the low inflation. In the current situation gold is an attractive asset for the investors in the short term.

Today’s key release is Consumer Price Index publication in the USA. If the indicator is worse than expected, the pair will too likely to renew the year highs.

Support and resistance

On the daily chart the instrument is trying to consolidate above the level of 1290.00. Bollinger Bands are pointed upwards; the price range stays the same, reflecting the high possibility of the development of the upward trend. MACD histogram is in the positive zone, keeping buy signal. Stochastic is ready to enter the overbought area.

Support levels: 1265.00, 1270.40, 1274.75, 1280.75.
Resistance levels: 1289.00, 1296.20, 1307.00.

Trading tips

Long positions can be opened at the level of 1289.50 with the target at 1300.00 and stop loss at 1286.00. Implementation period: 1–2 days.
Short positions can be opened at the level of 1280.00 with the target at 1270.25 and stop loss at 1284.00. Implementation period: 1–2 days.
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[LiteForexNews]

USD/JPY: yen is under pressure

Current trend

The pair started the week with growth to the level of 109.65. Although initial GDP data of Japan for Q2 2017 showed growth (from 1.5% to 4.0% YoY and from 0.3% to 1.0% MoM), yen is weakening. It is under pressure from July data on industrial output and retail sales in China that were the worst since January 2017.

The situation in the Japanese economy is also uncertain. The growth of GDP in Q2 2017 was caused by increased internal demand and consumer spending. However, durable goods account for a considerable part of them, which may indicates that the costs are seasonal, and that in the future the tendency for their increase would not preserve and new pressure will be put on the GDP volume.

Support and resistance

Technically the price grew above the middle line of Bollinger Bands (109.50) and is aiming at 110.05 (Fibo correction 23.6%). If this level is broken out, growth may continue to 110.80 (gathering of Fibo corrections 23.6% and 38.2%) and 111.55 (Fibo correction 50.0%). However, one cannot exclude the reversal and return of the price to August minimums at 108.70. Technical indicators show mixed signals: MACD histogram is reducing in the negative zone, and Stochastic is turning downwards to the overbought zone.

Support levels: 109.50, 108.70, 108.00.
Resistance levels: 110.05, 110.80, 111.55, 112.20.

Trading tips

In this situation, short positions could be opened below 109.50 with target at 108.70. Stop-loss order may be placed at 109.80.
If the price consolidates above 110.05, long positions could be opened with target at 110.80, 111.55 and stop-loss at 109.70.

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[LiteForexNews]

GBP/USD: pound is under the pressure of high inflation

Current trend

On Tuesday the pair was rapidly corrected to the level of 1.2845 (Fibonacci correction 61.8%). US dollar was supported by strong July Retail Sales data (in July the index grew by 0.6%) and new rumors upon the soon Fed’s interest rate rise. On the other hand, pound is under the pressure of June UK Consumer Price Index, which stayed at the same high level of 2.6%, as the fall of fuel prices was balance by the growth of food prices.

The long term maintenance of the high level of inflation raises concerns of market, as the earning index in the UK don’t keep pace with the Consumer Price Index growth, which leads to the impoverishing of the households, fall of retail sales and pressure on the GDP.

Today the Average Earnings data will be published in the UK, the index including bonus is expected to stay on the same level of 2.0% and index excluding bonus — on the level of 1.8% In this case the pair can decrease further. In addition, investors are waiting for the employment market data in the UK, which are expected to be more positive. The decrease of unemployment level from 5.9K to 3.7K is expected in June.

Support and resistance

Technically the pair is trading within the narrow sideways range of 1.2845 (Fibonacci correction 61.8%) and 1.2880 (Murray ), waiting for the employment and earnings data. In case of breakout of the upper border of the range the price can grow to the levels of 1.2930 (Fibonacci correction 50.0%, the middle line of Bollinger Bands) and 1.3005 (Fibonacci correction 38.2%, Murray ). The consolidation of the price below the level of 1.2845 can let it go down to the area of 1.2800 and 1.2750 (Fibonacci correction 61.8%).

Support levels: 1.2845, 1.2800, 1.2750.
Resistance levels: 1.2880, 1.2930, 1.3005.

Trading tips

Long positions can be opened after the breakout of the level of 1.2880 with the targets at 1.2930, 1.3005 and stop loss around 1.2840.
Short positions can be opened below the level of 1.2845 with the targets at 1.2800, 1.2750 and stop loss at 1.2880.

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[LiteForexNews]

LiteForex. USD/CAD: general analysis

Current trend

Yesterday the USD/CAD pair lost 1%, despite the fall of oil prices and decrease of the Canadian government bonds yield. The main cause of the fall was USA President Trump’s decision to dismiss his two business counsels. Thus Trump is losing the support of business community, which has expressed discontent upon President’s reaction to the Charlottesville incident. In addition, the USD is under the pressure of the FOMC Minutes publication. Most of the officials have expressed concern upon the low inflation level, accented that the level below 2% would stay longer than expected. This means that the US regulator will postpone the interest rate rise until 2019.

Today in the evening the USA employment data will be published. The growth of Initial and Continuing Jobless Claims will let the USD/CAD pair to fall. Also, the traders will pay attention to FOMC Members Kashkari and Kaplan Speeches. The official’s commentaries upon the inflation and balance-sheet reduction can affect the further pairs’ dynamics greatly.

Support and resistance

On the daily chart the instrument is in the correction around the support level of 1.2595. Bollinger Bands are reversing sideways, the price range is widening, reflecting the development of the current trend. MACD histogram is in the negative zone, keeping a weak sell signal. Stochastic is reaching the oversold area.

Support levels: 1.2595, 1.2510, 1.2400.
Resistance levels: 1.2675, 1.2790, 1.2845, 1.2930.

Trading tips

Short positions can be opened at the level of 1.2590 with the target at 1.2500 and stop loss at 1.2620. Implementation period: 1-2 days.
Long positions can be opened at the level of 1.2680 with the target at 1.2785 and stop loss at 1.2595. Implementation period: 1-3 days.

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[LiteForexNews]

LiteForex EUR/USD: the pair is trading in the downward channel

Current trend

On Thursday the pair tested the level of 1.1700 (Fibonacci correction 23.6%) again, but couldn’t consolidate below it and began to grow after the poor July US Industrial production data publication (the indicator decreased from 0.4% to 0.2%). At the moment the price is trading around the middle line of Bollinger Bands (1.1740) due to controversial factors. EUR is under the pressure of the terrorist acts in Spain, as USD is affected by the conflict in Trump’s administration. The rumors about the chief President economic advisor Gary D. Cohn resign were not confirmed, which slowed the fall of the US currency.

Yesterday the Head of FRB Robert S. Kaplan mentioned that the politics and investors should be patient and reasonable in waiting for the new interest rate rise. He also said that the balance-sheet reduction process can be started in the nearest future, while it’s better to wait for the stable growth of the inflation before the interest rate rise, which disappointed the market.

Support and resistance

Technically the pair is trading within the downward channel and is tending to its upper border at the area of 1.1780 (Fibonacci correction 38.2% for the long term trend). In case of breakout the price can grow to August highs at the level of 1.1880. In case of reversal around 1.1780 the fall to the key support level of 1.1700 (Fibonacci correction 23.6%, Murray ) is possible.

Support levels: 1.1700, 1.1590, 1.1500.
Resistance levels: 1.1780, 1.1880, 1.1950.

Trading tips

Short positions can be opened at the current price or at the level of 1.1780 with the targets at 1.1700 and 1.1590 from stop loss at around 1.1810.
If the price is set above the level of 1.1780, long positions will become relevant with the target at 1.1880 and stop loss at 1.1760.

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[LiteForexNews]

LiteForex WTI Crude Oil: general review

Current trend

Oil prices grew rapidly after the release of the data from Baker Hughes on Friday indicating the reduction in the number of active drilling rigs in the USA by 5 to 763 which is the biggest reduction of the indicator in the last 7 months. In view of this the quotes of WTI grew by 3.38% to 48.60.

Oil prices were additionally supported by the news that Exxon Mobil Corp decided to close one of the biggest refineries in the USA. Today WTI quotes are gradually reducing in the framework of downward correction.

Support and resistance

In he absence of growth drivers downward correction is likely to continue in the near future. The main target of correction seems to be the level of 47.55 that coincides with the middle line of Bollinger Bands. After reaching this level the price is likely to move back to 48.85. One may speak about downward movement after the price consolidates below 47.55. In this case the next target of the sellers will be 46.57.

Technical indicators show the preservation of the upward trend but do not exclude the possibility of downward correction. MACD histogram is growing in the positive zone indicating preserved influence of the buyers. Bollinger Bands diverge confirming the upward trend. However, the price has broken through the upper line of Bollinger Bands which indicates the possibility of downward correction of the rate to 47.55 corresponding to the middle line of Bollinger Bands. One may speak about the continuation of the upward trend after the price consolidates above 48.85.

Support levels: 48.42, 47.55, 46.57.
Resistance levels: 48.85, 49.69, 50.42.

Trading tips

Sell positions may be opened below 48.42 with targets at 47.55 and stop-loss at 48.70.
Buy positions may be opened after the price is fixed above 48.85 with the nearest target at 49.69 and stop-loss at 48.55.

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LiteForex CAC: technical analysis

CAC, D1

On the daily chart, the instrument is growing towards the middle MA of Bollinger Bands. The price remains above the SMA200, and just below the EMA14, EMA65 and EMA130 that start turning down. The RSI is testing its longer MA from above. The Composite keeps forming a Bullish divergence with the price.

CAC, H4

On the 4-hour chart, the instrument is trading just above the middle MA of Bollinger Bands. The price remains below the EMA65, EMA130 and SMA200 that are directed down. Both the RSI and Composite have formed a Bullish divergence with the price.

Key levels

Support levels: 5050.0 (local lows), 5010.0 (November 2015 highs), 4972.0 (April lows).
Resistance levels: 5128.0 (local highs), 5167.0 (April gap), 5180.0 (local highs).

Trading tips

The price is likely to retest its medium-term descending trendline.
Long positions can be opened form the level of 5128.0 with targets at 5167.0, 5180.0 and stop-loss at 5107.0. Validity – 3-5 days.
Short positions can be opened from the level of 5050.0 with targets at 5010.0, 4972.0 and stop-loss at 5075.0. Validity – 3-5 days.

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LiteForex WTI Crude Oil: price consolidates

Current trend

Today the price of WTI is trading near the level of 47.60, to where it corrected after the publication of the API Weekly Crude Oil Stock data.

The report demonstrated another decline in reserves though smaller than in the previous two weeks (only for 3.6 million barrels). The instrument is not able to begin its growth even though there are supply disruptions from the Sharara oil field in Libya and a decision of one of the world’s largest miners BHP Billiton to sell its US shale assets due to their underperformance. Markets have paused as investors are waiting for the publication of the EIA Crude Oil Stock Change tonight that could also show a smaller decline in reserves, which might still pressure the instrument.

Support and resistance

The price fell below the middle MA of Bollinger Bands and could continue falling towards 47.10 (38.2% Fibonacci correction) and 46.15 (50% correction). Crucial for Bulls seems to be the level of 47.80 (middle MA of Bollinger Bands), a breakout of which would lead to a growth towards a cluster of 23.6% corrections (48.40 and 49.00). Technical indicators do not give a clear signal representing an uncertainty of the market before the news release. The Stochastic is directed down, Bollinger bands up while MACD histogram is near the zero line and its volumes are insignificant.

Support levels: 47.10, 46.15, 45.20.
Resistance levels: 47.80, 48.40, 49.00.

Trading tips

Short positions can be opened from the level of 47.10 with the target at 46.15 and stop-loss at 47.50.
Long positions can be opened after the price consolidation above the level of 47.80 with targets at 48.40, 49.00 and stop-loss at 47.40.

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LiteForex USD/JPY: general analysis

Current trend

Yesterday the pair was under the pressure of US New Home Sales statistics fall. In addition, the PMI Markit decreased to 52.5 basis points, which is by 0.8 points lower than expected. Today in Japan Foreign bond investment data were published. The volume of investments into debt obligations decreased, which let USD restore part of yesterday’s loss.

Today 3-day Economic Policy Symposium starts in Jackson Hole. Tomorrow Janet Yellen speech is expected. Her commentaries upon inflation, terms and volumes of balance-sheet reduction of the US regulator will greatly affect the dynamics of the price in the short term. Today the Initial Jobless Claims publication is worth traders’ attention. The expected growth of index will let the USD/JPY pair fall further.

Support and resistance

On the daily chart the pair began to grow from the support level of 108.85. Bollinger Bands are pointed downwards; the price range is stable, which reflects the development of the current trend. MACD histogram is in the negative zone; its volumes are decreasing, keeping a strong signal to open short positions. Stochastic doesn’t give clear signals to enter the market.

Support levels: 108.85, 108.60, 108.20.
Resistance levels: 109.40, 109.90, 110.35, 111.10.

Trading tips

Long positions can be opened above the level of 109.40 with the target around 110.30 and stop loss at 109.10. Implementation period: 1–2 days.
Short positions can be opened below the level of 109.00 with the target around 108.60, 108.40 and stop loss at 109.20. Implementation period: 1–2 days.

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[LiteForexNews]

LiteForex XAU/USD: general analysis

Current trend

During yesterday’s trading session gold price insignificantly fell and reached the level of 1291.93 (–0.21%) due to slight strengthening of the USD, which reacted to the lack of news upon the conflict between USA and North Korea.

At the moment gold is trading around the key level of 1300 USD per troy ounce. It reached the level of 1292.74 (+0.06% against the day before). Investors are focused on today’s Mario Draghi and Janet Yellen speeches at the summit in Jackson Hole, where the heads of central banks can comment upon further actions within the monetary policy. Donald Trump’s Administration problems also prevent gold from falling in the nearest future.

Today traders should pay attention to US Durable Goods Orders publication at 14:30 (GMT+2), which can affect the US currency.

Support and resistance

On the daily chart the instrument is trading above the middle line of Bollinger Bands, Bands are pointed upwards, which reflects the upward trend. However, CCI is reaching the zero line, and after is crosses it, the clear sell signal will be received. RSI is in the neutral zone, the indicator’s line is slightly reversing upwards, which reflects the upward trend.

Support levels: 1282.83, 1271.83, 1264.64.
Resistance levels: 1292.45, 1300.39.

Trading tips

Short positions can be opened after the price is set below the support level of 1282.83 with the targets at 1271.83 and 1264.67 and stop loss at 1287.02.
Long positions will become relevant after the breakout of the level of 1292.45 with the target at 1300.39 and stop loss at 1284.29.

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LiteForex XAG/USD: silver keeps rising

Current dynamics

Silver is moderately growing during the morning session on August 28th, trading in close proximity to local highs, updated on August 18th. The instrument was supported by weak US currency, which was under pressure from disappointing results of the speech of the head of the Fed, Janet Yellen, at the annual symposium in Jackson Hole.
Recall that investors were waiting for comments on the prospects for monetary policy. In particular, traders were interested in the reduction of the Fed's balance sheet, which the regulator representatives themselves talked about so much. Instead, Yellen confined herself to general issues on financial stability and regulation in the banking sector.

On Monday, the only published indicators would be the ones of business activity in the industrial sphere of the Dallas Fed in August. Against this background, we can expect that the pair will maintain its upward mood and come close to the previous local highs.

Support and resistance

The indicator "Bollinger bands" on the daily chart is slightly growing, and can still turn sideways. The price range is narrowing, reflecting the multidirectional nature of trading in recent days.
The MACD indicator keeps a weak buy signal (the histogram is located above the signal line).

Oscillator Stochastic is growing, approaching the border of the overbought area.
Resistance levels: 17.16 (local maximum), 17.27 (maximum of August 18), 17.38.
Support levels: 17.00, 16.89, 16.73 (minimum of August 25), 16.62, 16.48.

Trading tips

To open long positions, one can rely on a breakdown of level 17.16, provided that the technical indicators do not contradict the development of the "bullish" trend. Take-profit – 17.38. Stop loss is at 17.00. Term of realization: 2 days.
If the level of 17.16 turns out to be an insurmountable obstacle for the bulls, it is worth considering the possibility of sales with a target in the area of 16.73. Stop loss – 17.30-17.80. Term of realization: 2-3 days.

Read more analytic on LiteForex site https://www.liteforex.com/trading/forex-analysis/

 

[LiteForexNews]

LiteForex USD/JPY: USD remains under pressure

Current trend

US currency has been under pressure against the Japanese yen during the morning session on August 29 and has already updated local minimums since mid-April. The growth of "bearish" activities in the instrument was explained by yet another growth of demand for safe haven assets after the announcement about the launch of a missile from North Korea directed at Japan.

By now USD managed to partially regain its positions. Among other factors, corrective growth was supported by uncertain data from Japan. For example, household expenses in July dropped unexpectedly by 0.2% YoY after growth by 2.3% in the previous month. Analysts predicted growth by 0.7% YoY.
On Wednesday the market will be waiting for the release of information on Japanese retail sales in July as well as specified data on US GDP in Q2 2017.

Support and resistance

Bollinger Bands in D1 chart continue to gradually decrease. The price range is widening reacting to increased activity in the course of the morning session on August 29. MACD is restoring the "bearish" signal (being located below the signal line) after a brief attempt to grow. Stochastic is showing similar dynamics having reversed downwards in the center of its area.
Resistance levels: 109.11, 109.41, 109.82, 110.23.
Support levels: 108.58, 108.32, 108.00.

Trading tips

Long positions may be opened after a reversal around the level of 108.32 with targets at 109.11, 109.41 and stop-loss at 108.00. The period of implementation is 2-3 days.

The breakdown of the level of 108.32 may serve as a signal to the continuation of sales with target at 108.00 and stop-loss at 108.50. The period of implementation is 1-2 days.

Read more analytic on LiteForex site https://www.liteforex.com/trading/forex-analysis/

 

[LiteForexNews]

LiteForex USD/CAD: the pair is trading in the flat


Current trend

Investors failed to determine the direction of trading in the pair USD/CAD on Tuesday, August 29, and the instrument closed around zero and showed active, but mixed dynamics of trading during the day.

Canadian dollar showed weak reaction to the Tuesday release of Canadian macroeconomic statistics. Thus, the index of prices for raw materials dropped by 0.6% MoM after a fall by 3.6% last month. Manufacturing prices index dropped by 1.5% in July on a monthly bas after a fall by 1.1% in June. The real dynamics of the indicator was much worse than expected.

On Wednesday, August 30, investors will focus their attention on macroeconomic statistics from the USA. Thus, the publication of detailed assessment of the US GDP in Q2 2017 is expected at 15:30 (GMT+2).

Support and resistance

Bollinger Bands in D1 chart demonstrate a gradual decrease. The price range is slightly narrowing in the lower part. MACD histogram is slightly growing keeping a weak buy signal (and remaining above the signal line).
Stochastic is showing slightly more stable dynamics and is located in the middle of its area.

Resistance levels: 1.2548, 1.2597, 1.2617, 1.2654, 1.2689.
Support levels: 1.2500, 1.2464, 1.2439, 1.2412.

Trading tips

Long positions may be opened from the level of 1.2500 with targets at 1.2548 or 1.2597 and stop-loss at 1.2464. The period of implementation is 2-3 days.
Breaking down the level of 1.2500 may be a signal to corrective sales with target around 1.2439 and stop-loss at 1.2548. The period of implementation is 2 days.

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[LiteForexNews]

LiteForex EUR/USD: the correction can end

Current trend

On Wednesday the pair was correcting and now has reached the level of 1.1865.
The US currency growth is due to relative reduction of tense on the Korean peninsula and to positive economic data publication. The new North Korea missile launch didn’t lead to military USA response, moreover, Secretary of Defense James Mattis noted that the diplomatic possibilities of the conflict resolution are not exhausted, which resulted in outflow of investors from shelter assets. In addition, the USD was supported by preliminary USA GDP data (in the second quarter its growth exceeded the expectations and reached the level of 0.3%) and August ADP Non-Farm Employment Change data (instead of expected fall the indicator grew from 201K to 237K).

At the moment the falling of the pair slowed, and it’s trading around 1.1890–1.1870. Investors are waiting for the EU Consumer Price Index publication, which is very important before the ECB meeting next week. The index is expected to grow from 1.3% to 1.4%, which can lead to the reversal of the price and the beginning of the new growth of EUR.

Support and resistance

Technically the pair is tending to the middle line of Bollinger Bands at the level of 1.1800, and after breakdown can go lower, to the area of 1.1720 (Murray ) and 1.1600 (Murray , Fibonacci correction 23.6%). The downward movement will develop in case of negative reaction of the market to the EU inflation data. The indicators confirm the possibility: Stochastic has reversed downwards, MACD histogram is decreasing in the positive zone.

The upward trend will develop after the price is set above the level of 1.1960 (Murray ). In this case it can grow to the area of 1.2085 (Murray ) and 1.2200 (Murray ).

Support levels: 1.1840, 1.1800, 1.1720, 1.1600.
Resistance levels: 1.1960, 1.2085, 1.2200.

Trading tips

Short positions can be opened below the level of 1.1840 with the targets at 1.1800, 1.1720, 1.1600 and stop loss at 1.1880.
Long positions can be opened above the level of 1.1960 or after the reversal near the level of 1.1800 with the targets at 1.2085, 1.2200 and stop loss 1.1920 and 1.1770.

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[LiteForexNews]

LiteForex NZD/USD: New Zealand dollar under pressure

Current trend

NZD reduced considerably against the US currency during trading on Thursday, August 31, marking a new local minimum since June 6. However, with the release of uncertain macroeconomic statistics from the USA the investor's sentiment has changed, and the instrument managed to regain the majority of lost positions by the closing of the daily session.

The reason for negative NZD dynamics was weak statistics from New Zealand. Namely, business optimism index by RBNZ dropped from 19.4 to 18.3 points in August. During the morning session on September 1 the pair received moderate support from Chinese data. Manufacturing PMI Caixin grew from 51.1 to 51.6 points in August against the forecast of reduction to 50.9 points. Other activities remain low as the market is waiting for the US labor market report for August.

Support and resistance

Bollinger Bands in D1 chart demonstrate decrease. The price range is moderately widening. MACD still preserves a stable downward trend. Stochastic is reducing but is located close to the border with the oversold area.
Resistance levels: 0.7190, 0.7222, 0.7257, 0.7297, 0.7335.
Support levels: 0.7160, 0.7130, 0.7101.

Trading tips

A reversal near the level of 0.7190 with further breakdown of 0.7160 may indicate the continuation of sales. In this case the target of the "bears" may be located around 0.7100. The period of implementation is 2 days.

Long positions may be opened from the level of 0.7190 with targets at 0.7257 or 0.7297 and stop-loss at 0.7130. The period of implementation is 2-3 days.

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[LiteForexNews]

LiteForex AUD/USD: the pair is showing minor growth

Current trend

AUD is growing during the morning session on September 4 after the update of a local maximum dated back to August 30 in the end of the previous week. The instrument is supported by the weakness of the US currency that is experiencing pressure again due to the tightening of the geopolitical situation around North Korea.
Macroeconomic statistics released in Australia on Monday has mixed influence on the pair. TD Securities inflation data in August showed growth by 0.1% MoM and 2.6% YoY which practically meets the data for the previous period. The indicator of income from main activities of companies in Q2 2017 dropped by 4.5% in quarterly terms after earlier growth by 6.0%. Investors expected it to dectease by 4.0% on the quarterly basis.

Trading activity on Monday will be reduced as the US markets will be closed on Monday due to the Labor Day. Investors will focus on the release of RBA minutes on Tuesday, September 5, at 06:30 (GMT+2).

Support and resistance

Bollinger Bands in D1 chart demonstrate slight growth. The price range remains quite unchanged and quite limited. MACD histogram is slightly growing keeping a weak buy signal (and remaining above the signal line). Stochastic is growing, approaching the border of the overbought zone once again.
Resistance levels: 0.7978, 0.7994, 0.8012, 0.8041.
Support levels: 0.7949, 0.7917, 0.7889, 0.7865.

Trading tips

Long positions may be opened after the outbreak of the levels 0.7978 or 0.7994 with targets at 0.8040, 0.8060 and top-loss at 0.7950. The period of implementation is 2-3 days.

Alternatively, short positions may be opened after breaking down the level of 0.7949 with target at 0.7889 and stop-loss at 0.7978. The period of implementation is 2-3 days.

Read more analytic on LiteForex site https://www.liteforex.com/trading/forex-analysis/