Forex Analysis by LiteForex

[Mikhail Kurakin]

LiteForex analitics. GBP/USD: general review

Current trend

Last week, the pair was declining, and by now the price has fallen below the level of 1.3427 (Murray [2/8]).
The current week will be full of important statistics that will allow investors to assess whether the British economy is able to begin recovery or will it continue the slowdown, which was recently talked about by Ben Broadbent, the deputy head of the Bank of England. On Wednesday, April data on inflation will be published. It is expected that the consumer price index will continue to decline and will amount to 2.3%. If the forecast is confirmed, the regulator can further delay the decision to raise the interest rate; however, taking into account the recent growth in wages, the purchasing power of British households will increase. Retail sales index in February promises to grow from 1.1% to 1.4%, and GDP - from 1.2% to 1.3%.
Positive economic statistics may be offset by the Brexit negotiations. So far, the issues of the Irish border and membership in the customs union remain open and do not have a solution even within the ruling cabinet.

Support and resistance

Currently, the instrument is below 1.3427 mark and may continue to decline to levels of 1.3300 (Murray [1/8], the lower border of Bollinger Bands) and 1.3183 (Murray [0/8]). If the price consolidates above 1.3550 mark, growth may continue to 1.3680.
Technical indicators show decline: Bollinger Bands and Stochastic are pointing down, MACD histogram is stable in the negative zone.
Support levels: 1.3305, 1.3183.
Resistance levels: 1.3427, 1.3550, 1.3671.

Trading tips

Short positions may be opened from the level of 1.3385 with targets at 1.3305, 1.3183 and stop-loss at 1.3430.
Long positions may be opened above 1.3550 mark with the target at 1.3671 and stop-loss at 1.3510.
Implementation time: 5-7 days.

 

[Mikhail Kurakin]

LiteForex analitics. XAG/USD: technical analysis

XAG/USD, D1

On the daily chart, the instrument is trading in the upper Bollinger band. The price remains just below its moving averages that are horizontal. The RSI is testing from below its longer MA. The Composite is growing, having broken out its longer MA.

XAG/USD, H4

On the 4-hour chart, the instrument is trading in the upper Bollinger band. The price remains on the level with its moving averages that are horizontal. The RSI turned down just below the border of the overbought zone. The Composite is falling, having broken down its longer MA.

Key levels

Support levels: 16.35 (local lows), 16.05 (March lows), 15.95 (April lows).
Resistance levels: 16.75 (March highs), 16.95 (local highs), 17.05 (local highs).

Trading tips

The price keeps trading in a sideways channel. There is a chance of a downward correction.
Short positions can be opened from the level of 16.35 with targets at 16.05, 15.95 and stop-loss at 16.55. Validity – 3-5 days.
Long positions can be opened from the level of 16.75 with targets at 16.95, 17.05 and stop-loss at 16.60. Validity – 3-5 days.

 

[Mikhail Kurakin]

LiteForex analitics. GBP/USD: general analysis

Current trend

On Wednesday, weak inflation data had pressured the British currency. The consumer price index continued to decline for the third month in a row and in April amounted to 2.4%. The basic consumer price index fell more strongly than expected and amounted to 2.1%. The Office of National Statistics of Great Britain notes that the decrease in inflation could be more significant, but it was compensated by the increase in the cost of fuel, the price of which reached a maximum for 3.5 years. Rapid approximation of the inflation rate to the target (2.0%) removes the need to raise the interest rate from the Bank of England. Under the current conditions, many market participants are waiting for it not earlier than by autumn.
Today, the price reversed around 1.3305 (Murray [2/8]) and entered the correction due to positive April Retail Sales, which grew more than expected, and reached 1.6% MoM and 1.4% YoY. However, it is due to the sale of gasoline and Internet sales, as store sales remained the same.

Support and resistance

The key “bullish” level is 1.3427 (Murray [2/8], middle line of Bollinger bands). The breakout will let the price grow to 1.3488 (Murray [5/6]) and 1.3550 (Murray [6/8]). Otherwise, the price can return to 1.3305 (Murray [2/8]) and fall to 1.3244 (Murray [1/8]). Technical indicators reflect the increase. Stochastic is directed upwards, MACD decreases in the negative zone.
Resistance levels: 1.3427, 1.3488, 1.3550.
Support levels: 1.3366, 1.3305, 1.3244.

Trading tips

Short positions can be opened below the level of 1.3366 with the targets at 1.3305, 1.3244, and stop loss 1.3400.
Long positions can be opened after the price is set above the level of 1.3427 with the targets at 1.3488, 1.3550 and stop loss 1.3400.
Implementation period: 5–7 days.

 

[Mikhail Kurakin]

LiteForex analitics. EUR/USD: general analysis

Current trend

Yesterday, the pair correctionally grew and is now trying to consolidate above the level of 1.1718. USD is under pressure of canceling the US-DPRK summit, moreover, next week new sanctions may be imposed on DPRK. However, EUR is unstable due to the Italian and Spanish government crisis. The Socialist Party of Spain is ready to vote of no confidence in Prime Minister Mariano Rajoy, whose advisers are accused of corruption.
Investors continue to follow the development of US-China trade disputes. The recent agreements on the mutual suspension of duties and of the US trade deficit with the US 200 billion aroused serious criticism in the US Congress. The Donald Trump to declare that the trade agreement with the PRC could be changed since it is difficult to verify its results. Market participants saw in this the possibility of a breakdown of the transaction. In addition, the US currency is weakened due to the data. There are fears that the following duties on metals, the president's administration and the trade war (this time with Germany, Japan, and South Korea) will get a new round.

Support and resistance

The consolidation above 1.1718 (Murray [2/8]) will let the price grow to the levels of 1.1840 (Bollinger bands’ middle line), 1.1900. However, the indicators reflect the strength of sellers, so the decline to 1.1596 (Murray [–1/8]) and 1.1540 is possible. Bollinger bands are pointed down, MACD is growing in the negative zone, Stochastic is reversing downwards.
Resistance levels: 1.1780, 1.1840, 1.1900.
Support levels: 1.1657, 1.1596, 1.1540.

Trading tips

Short positions can be opened at the level 1.1657 with the targets at 1.1596, 1.1540 and stop loss 1.1690.
Long positions can be opened at the level 1.1780 with the targets at 1.1840, 1.1900 and stop loss 1.1740.

 

[Mikhail Kurakin]

LiteForex analitics. USD/JPY: Murrey analysis

On D1 chart, the instrument is testing the level of 109.37 ([6/8]), but cannot consolidate below it. If this happens, the price can reach the levels of 108.60 ([-2/8] on H4, the lower line of Bollinger Bands) and 107.81 ([5/8]). For the "bulls", the 110.00 is seen as the key level (in the midline of Bollinger Bands). If the instrument consolidates above it, further growth is likely to the level of 110.93 ([7/8], the upper line of Bollinger Bands).
Technical indicators show decline: MACD histogram is declining in the positive zone; Stochastic is pointing down but has approached the oversold zone, so a reverse and the formation of a signal to an upward correction are likely.

Support and resistance

Support levels: 109.37 ([6/8]), 108.60 ([-2/8], H4), 107.81 ([5/8]).
Resistance levels: 110.00 (the midline of Bollinger Bands), 110.93 ([7/8]).

Trading tips

Short positions may be opened below 109.37 with targets at 108.60 и 107.81 and the stop-loss at 109.70.
Long positions may be opened if the price reverses, from the level of 110.00, with the target at 110.93 and the stop-loss at 109.70.
Implementation time: 5-7 days.

 

[Mikhail Kurakin]

LiteForex analitics. AUD/USD: general analysis

Current trend

This week, Australian investors are focused on the poor national building sector data, as housing prices in many cities are declining, especially in Sydney (2.3%) and Melbourne (1.3%). On Wednesday, Building Permits data will be released, which can decrease by 3% in April, reflecting, that the prices are falling and construction companies would not open new deals.
The Australian Monetary Authority is still calm. Officials of the RBA, including its head Philip Lowe, have repeatedly noted that there is no need to correct the monetary policy. However, further tightening of the interest rate may put additional pressure on property prices and negatively affect the Australian economy in general. The next meeting of the Reserve Bank of Australia will be held next week.

Support and resistance

Since the end of April, the price has been moving within the sideways range of 0.7568–0.7446 (Murray [4/8]–[2/8], the lower border of Bollinger bands). The price is now testing the level of 0.7507 (Murray [3/8], the middle line of Bollinger bands) and then will move to the lower border of the sideways range, according to the indicators. Stochastic is directed downward, MACD histogram is set in the negative zone.
Resistance levels: 0.7568, 0.7629.
Support levels: 0.7507, 0.7446, 0.7385.

Trading tips

Short positions can be opened below the level 0.7507 with the targets at 0.7446, 0.7385 and stop loss around 0.7530.
Long positions can be opened from the level of 0.7568 with the target at 0.7629 and stop loss 0.7530.

 

[Mikhail Kurakin]

LiteForex analitics. EUR/USD: general review

Current trend

On Wednesday, EUR attempted a correction in view of positive German data on unemployment and retail sales.
In April, the growth in retail sales significantly exceeded forecasts and amounted to 2.3%. In May, the unemployment rate fell from 5.3% to 5.2%. The strengthening could be short-lived, as the political crisis in Italy continues to worsen. The new government, which should be formed by Carlo Cottarelli, is unlikely to receive the approval of the parliament, which will lead to new elections in September. Eurosceptics can gain enough votes to form a government again, and they may offer a way out of the EU.
American investors are now following the development of the US-China trade conflict and the publication of data on US GDP. On Tuesday, Donald Trump said he could impose additional duties of USD 50 billion to pressure China in the new round of negotiations. PRC’s authorities confirmed the determination to defend their economic positions. US GDP in Q1 is likely to remain at the same level of 2.3%.
Support and resistance


The consolidation of the price above 1.1657 (Murray [5/8], H4) will give the prospect of growth to 1.1718 (Murray [0/8]) and 1.1780 (the midline of Bollinger Bands). A breakdown of 1.1540 (Murray [1/8], H4) will lead to a decrease to 1.1474 (Murray [-2/8]) and 1.1413 (Murray [-1/8], H4).
Technical indicators give ambiguous signals: Bollinger Bands are pointing down, MACD histogram grows in the negative zone, Stochastics is preparing to leave the oversold zone and form a buy signal.
Support levels: 1.1596, 1.1474, 1.1413.
Resistance levels: 1.1657, 1.1718, 1.1780.

Trading tips

Sell positions may be opened from 1.1540 with targets at 1.1474, 1.1413 and stop-loss at 1.1580.
Buy positions may be opened above 1.1657 with targets at 1.1718, 1.1780 and stop-loss at 1.1620.

 

[Mikhail Kurakin]

LiteForex analitics. Brent Crude Oil: general review

Current trend

After a serious decline last Friday, Brent crude oil attempted an upward correction reaching 77.70 (the midline of Bollinger Bands) but cannot consolidate above it.
The instrument is constrained by the increase in the volume of the US commercial oil reserves according to the API (by 1.001 million barrels to 434.9 million barrels), as well as the possibility of an increase in production by 1 million barrels by OPEC countries and Russia in June. This should cover the supply shortage related to interruptions from Iran and Venezuela. European companies aren't leaving the Iranian oil market now, hoping that US sanctions will take effect only after the end of the 180-day preparatory period. In May, the volume of Iranian exports decreased insignificantly, from 2.6 to 2.5 million barrels per day. The place of European companies can be taken by Asian ones. The Chinese Sinopec is currently working on completing a USD 3 billion deal to develop the largest Iranian oil fields.
In the evening, investors are waiting for new EIA data on US oil stocks. The drop of 1.200 million barrels is expected, which can provide serious support to prices.

Support and resistance

If the instrument consolidates above the midline of Bollinger Bands at 78.12 (Murray [+1/8]), growth is possible to 79.68 (Murray [6/8], H4) and 80.47 (Murray [7/8], H4). Otherwise, the price may return to 75.00 (Murray [8/8]).
Technical indicators show ambiguous signals: Bollinger Bands and Stochastic are directed upwards. MACD histogram is declining in the positive zone.
Support levels: 76.56, 75.78, 75.00.
Resistance levels: 78.12, 79.68, 80.47.

Trading tips

Buy positions may be opened above 78.12 with targets at 79.68, 80.47 and stop-loss at 77.80.
Sell positions may be opened from 76.56 with targets at 75.78, 75.00 and stop-loss at 76.90.

 

[Babaha]

Some clients of LiteForex report that this office does not show them their money. Also, many clients write that LiteForex is blocking out money for more than 14 days. But why are people's money blocked?

 

[Mikhail Kurakin]

LiteForex analitics. EUR/USD: general analysis

Current trend

Published on Friday, the May data from the US labor market proved to be strong. The number of Nonfarm Payrolls has grown stronger than forecasts from 159K to 223K. The average wage has expectedly increased by 2.7%, and the unemployment rate has dropped to 3.8%. On the one hand, the good state of the labor market helps raise the Fed's interest rate. However, the complication of trade relations with the EU leads to an increase in the uncertainty of the American economy, which means that the regulator may delay the tightening of monetary policy. James Bullard, the head of the FRB of St. Louis, said this on Friday.
Since June 1, US have implied taxes on EU Canadian and Mexican steel and aluminum. In reply, the will imply taxes on a number of US goods, and EU plans to initiate WTO proceedings. This week in Canada, the G7 leaders will meet to discuss the trade disputes. Beijing can refuse form earlier agreements if the US introduces new taxes on Chinese goods.

Support and resistance

The price returns to Murray main range, consolidating above 1.1718 (Murray [0/8]). In this case, the instrument can reach 1.1840 (Murray [1/8]), 1.1900 and 1.1962 (Murray [2/8], the upper border of Bollinger bands). Otherwise, the pair can return to 1.1540 (Murray [5/8], H4). Technical indicators are ambiguous. Bollinger bands are directed downwards. MACD decreases in the negative zone. Stochastic is directed upwards, reaching the overbought zone.
Resistance levels: 1.1718, 1.1840, 1.1900.
Support levels: 1.1657, 1.1596, 1.1540.

Trading tips

Long positions can be opened above 1.1718 and the midline of Bollinger bands (1.1760) with the targets at 1.1840, 1.1900 and stop loss 1.1710.
Short positions can be opened below 1.1657 with the targets at 1.1596, 1.1540 and stop loss around of 1.1690.

 

[Mikhail Kurakin]

LiteForex analitics. USD/JPY: Murrey analysis

On D1 chart, the price rose above the level of 109.37 ([6/8]) and tests the midline of Bollinger Bands near 109.70 area. Consolidation of the instrument above this level will give the prospect of growth to 110.93 ([7/8]) and 111.71 ([+2/8], H4). Otherwise, the price may resume decline to the levels of 108.20 ([1/8], H4) and 107.81 ([5/8]).
Technical indicators don't provide a clear signal. MACD histogram stopped declining but is still close to the zero line. Stochastic is pointing down but has approached the oversold zone, so a reverse and the formation of a sell signal are likely.

Support and resistance

Support levels: 109.37 ([6/8]), 108.20 ([1/8], H4), 107.81 ([5/8]).
Resistance levels: 110.00 (weekly maximum), 110.93 ([7/8]), 111.71 ([+2/8], H4).

Trading tips

Short positions may be opened below 109.37 with targets at 108.20, 107.81 and the stop-loss at 109.70.
Long positions may be opened above the level of 110.00 with targets at 110.93, 111.71 and stop-loss at 109.70.
Implementation time: 5-7 days.

 

[Mikhail Kurakin]

LiteForex analitics. AUD/USD: correction may be long

Current trend

In June, the Australian dollar against the US one continues to recover after a significant fall in April and early May. The pair returned to the medium-term downward channel and has now reached the upper border of this trend.
The main catalyst for this movement was the fall in the attractiveness of the overbought American currency: investors fix short positions, waiting for a longer upward correction. Moreover, strong economic growth data for Q1 were released in Australia, which gave serious support to AUD.
This week, there will be no key releases for the US dollar, so one should not expect increased interest in the currency.

Support and resistance

The pair stopped at a strong resistance level of 0.7670, which is the upper border of the descending channel, which makes it difficult to pass this mark. On the other hand, a strong fundamental background in Australia and a decline in demand for USD can provide momentum for further growth with the possibility of the upward correction to the levels of 0.7700, 0.7800. From them, the instrument can go down to local minima: one should not expect a fall from the current level, but the overall trend remains descending.
Technical indicators on W1 chart confirm the decline forecast in the medium term: MACD indicates the preservation of the high volume of short positions, and Bollinger Bands are pointing downwards.
Support levels: 0.7600, 0.7560, 0.7530, 0.7505, 0.7480, 0.7450, 0.7410.
Resistance levels: 0.7650, 0.7670, 0.7700, 0.7735, 0.7770, 0.7800.

Trading tips

Short positions may be opened from levels of 0.7700, 0.7770, 0.7800 with targets at 0.7450, 0.7410 and stop-loss at 0.7870.

 

[Mikhail Kurakin]

LiteForex analitics. GBP/USD: general analysis

Current trend

The pair is influenced by contradictory factors. On the one hand, positive British Service, Manufacturing, and Construction PMI inspired the investors and gave hopes for reduction of BoE monetary stimulus. On the other hand, Brexit situation is incurring significant risks for the British economy. In general, business is preparing for hard times. Representatives of major European and British companies have warned Prime Minister Theresa May about a possible reduction in investment, which would cause a reduction in jobs number.
The lack of a compromise upon Brexit in the British government worsens the situation. Recently, Theresa May proposed to leave the UK in the EU United Customs zone temporary, which would let avoid the physical borders in Ireland. However, this plan has raised objections from a number of ministers, including David Davis, Boris Johnson, and Liam Fox, who insisted that the UK's stay within the customs union should be limited to a specific unmovable deadline.

Support and resistance

Technically, the pair has been growing for two weeks but was corrected to the midline of Bollinger bands. In the case of a breakdown below the level of 1.3366 (Murray [6/8]), a further decline to the level of 1.3300 (Murray [4/8]) is possible, which is confirmed by indicators: Stochastic reversed downwards, MACD decreases in the positive zone. The key "bullish" level is 1.3427 (Murray [0/8]). In case of the breakout, the price can grow to 1.3488 (Murray [+2/8]), 1.3540.
Resistance levels: 1.3427, 1.3488.
Support levels: 1.3366, 1.3300.

Trading tips

Short positions can be opened below the level of 1.3366 with the target at 1.3300 and a stop loss around 1.3400.
Long positions can be opened above the level of 1.3427 with the targets at 1.3488, 1.3540 and stop loss 1.3390.
Implementation period: 3–5 days.

 

[Mikhail Kurakin]

LiteForex analitics. USD/JPY: general review

Current trend

This week, the pair rose to around 110.65 amid expectations of an interest rate increase by the Fed, the decision on which will be made today.
It is expected that the regulator will raise the rate from 1.75% to 2.00%. Nevertheless, the main intrigue is how much more increases should be expected this year – one or two. Jerome Powell, the Fed's Head, can answer this question at today's press-conference. In conditions of steady growth of inflation, the basic level of which exceeds the target level of 2.0% for three months in a row, the aggressive increase in rates looks logical. However, a trade conflict with the EU and Canada can make the FOMC officials be more cautious.
On Thursday, April data on industrial production in Japan will be published. It is expected that, on an annual basis, the figure will increase from 2.5% to 3.1%, which is unlikely to significantly strengthen the yen, as investors' attention will continue to focus on the results of the meeting of the American regulator.

Support and resistance

Currently, the price approaches the level of 110.93 (Murray [7/8]) and after its breakout can go to the level of 111.40 (the May high area). A breakdown of the midline of Bollinger Bands around 109.85 will give a prospect of a decline to 109.37 (Murray [6/8]) and 108.75. Technical indicators show growth. Stochastic is directed upwards, and MACD histogram is growing in the positive zone.
Support levels: 109.85, 109.37, 108.75.
Resistance levels: 110.93, 111.40.

Trading tips

Long positions may be opened from the current level with targets at 110.93, 111.40 and stop-loss at 110.20.
Short positions may be opened below the level of 109.85 with targets at 109.37, 108.75 and stop-loss at 110.10.

 

[Mikhail Kurakin]

LiteForex analitics. GBP/USD: general review

Current trend

Yesterday, the pair dropped against the background of the results of the Fed's meeting. The key interest rate was raised from 1.75% to 2.00%, and the majority of the Committee members expect two more increases this year.
Today, GBP won back its lost positions, which was facilitated by strong May data on the UK retail sales. YoY the indicator grew from 1.4% to 3.9%. Increased volumes of retail sales were promoted by warm weather and Prince Harry's wedding. These strong data did not clarify the British economy state. After March decline, the indicator has been growing for the second month in a row. But this growth is caused by temporary factors and in June the decline may resume. The Bank of England may need new data to make a decision on the interest rate. Many investors expect its increase in August, especially after the deputy head of the British regulator, Dave Ramsden, spoke last week in favor of rising lending costs.

Support and resistance

Currently, the price is testing the 1.3427 level (Murrey [+1/8]) and, if it consolidates above it, the price can continue to rise to the levels of 1.3540 and 1.3671 (Murrey [0/8]). The key level for the "bears" seems to be 1.3365 (midline of Bollinger Bands). If it is broken down, the price may drop to 1.3300 and 1.3220 (the bottom line of Bollinger Bands). Technical indicators generally indicate growth. MACD histogram is reducing in the negative zone, and Stochastic is reversing upwards.
Support levels: 1.3365, 1.3300, 1.3220.
Resistance levels: 1.3427, 1.3540, 1.3671.

Trading tips

Buy positions may be opened above 1.3427 with targets at 1.3540, 1.3671 and stop-loss at 1.3380.
Sell positions may be opened below 1.3365 with targets at 1.3300, 1.3220 and stop-loss at 1.3400.
Implementation period: 5-7 days.

 

[Mikhail Kurakin]

LiteForex analitics. EUR/USD: the euro is recovering

Current trend

EUR grew against USD on Friday, having regained some of its losses. Active sales of EUR were due to the market reaction to the ECB meeting outcome.
The member of the board of ECB governors and the head of the Bank of Austria Ewald Novotny tried to calm down the investors. He noted that inflation is very close to the target level of 2.0% and the ECB is embarking on a process of monetary policy normalizing. However, their actions will not be sharp and will take a significant amount of time.
Published on Friday, the final May inflation data did not change. Consumer Price index remained unchanged at the level of 1.9%. On the one hand, high inflation indicators will push the European regulator to a gradual cancellation of monetary incentives. On the other hand, according to Mario Draghi, the ECB does not take into account the risks associated with the introduction of the US trade duties on metals produced in the EU. If the situation worsens, monetary policy tightening may be postponed.

Support and resistance

Bollinger Bands in D1 chart demonstrate flat dynamics. The price range widens but not enough for "bearish" trend to develop. MACD declines keeping a sell signal (located below the signal line). Stochastic declines locating close to its minimum levels, indicating oversold EUR.
Technical indicators don’t contradict "bearish" trend development but corrective growth is possible.
Resistance levels: 1.1625, 1.1659, 1.1688, 1.1711.
Support levels: 1.1572, 1.1541, 1.1508.

Trading tips

To open long positions, one can rely on the rebound from the support level of 1.1572, with the breakout of 1.1600. Take-profit — 1.1688, 1.1711. Stop-loss — 1.1550.
A breakdown of 1.1572 may be a signal to sell with targets at 1.1508, 1.1500 or 1.1475. Stop-loss — 1.1625.
Implementation period: 2-3 days.

 

[Mikhail Kurakin]

LiteForex analitics. USD/JPY: the dollar is dropping

Current trend

USD showed a stable decrease against JPY on Tuesday, updating the local low of June 11. The growth of the Japanese currency is fueled by the growing US-China trade conflict.
At the same time, the dollar is relatively stable, as it receives support from the Fed's actions aimed at gradual tightening of monetary policy.
Today, the pair is also trading in an upward direction. Traders focus on the published minutes of the April meeting of the Bank of Japan, which in many respects turned out to be neutral. According to the protocol, only one official spoke in favor of additional stimulation measures, while the overwhelming majority of board members advocated the preservation of the monetary policy vector.

Support and resistance

On the D1 chart, Bollinger Bands are gradually reversing horizontally. The price range is narrowing, reflecting ambiguous nature of trading in recent days. MACD reversed downwards having formed a sell signal (located under the signal line). Stochastic is going down and is located in the middle of its area.
Technical indicators do not contradict the further development of the "bearish" trend in the short and/or ultra-short term. The existing short positions should be left open for some time.
Resistance levels: 110.25, 110.60, 111.00, 111.38.
Support levels: 109.90, 109.53, 109.17, 108.83.

Trading tips

To open long positions one can rely on the breakout of the level of 110.25 if signals for the uptrend development in the short and/or ultra-short term emerge. Take-profit — 111.00. Stop-loss — 109.80.
The rebound from the level of 110.25 as from resistance, with the subsequent breakdown of 109.90, can become a signal to new sales with target at 109.17, 109.00 or 108.83. Stop-loss — 110.40.
Implementation period: 2-3 days.

 

[Mikhail Kurakin]

LiteForex analitics. FTSE: technical analysis

FTSE, D1

On the daily chart, the instrument is trading on the lower line of the Bollinger Bands. The price remains slightly above its moving averages that turned horizontally. The RSI is falling towards the border of the oversold zone. The Composite is approaching its most recent support.

FTSE, H4

On the 4-hour chart, the instrument is correcting up from the lower line of the Bollinger Bands. The price remains below its moving averages that start turning down. The RSI is about to test from below its longer MA. The Composite is showing similar dynamics.

Key levels

Support levels: 7540.0 (local lows), 7470.0 (local lows), 7445.0 (March 2017 highs).
Resistance levels: 7635.0 (local highs), 7680.0 (local highs), 7770.0 (local highs).

Trading tips

There is a chance of a short-term upward correction, after which the fall will continue.
Short positions can be opened from the level of 7540.0 with targets at 7470.0, 7445.0 and stop-loss at 7585.0. Validity – 3-5 days.
Long positions can be opened from the level of 7680.0 with the target at 7770.0 and stop-loss at 7635.0. Validity – 3-5 days.

 

[Mikhail Kurakin]

LiteForex analitics. CAC: technical analysis

CAC, D1

On the daily chart, the instrument is trading on the lower line of the Bollinger Bands. The price remains just below its moving averages that start turning down. The RSI is approaching the border of the oversold zone. The Composite is about to test from below its longer MA.

CAC, H4

On the 4-hour chart, the instrument is correcting down from the middle MA of the Bollinger Bands. The price remains below its moving averages that are directed down. The RSI is testing from above its longer MA. The Composite is about to test its longer MA as well.

Key levels

Support levels: 5300.0 (local lows), 5285.0 (local lows), 5265.0 (November 2017 lows).
Resistance levels: 5400.0 (local highs), 5435.0 (local highs), 5500.0 (local highs).

Trading tips

The fall is likely to continue.
Short positions can be opened from current prices with targets at 5300.0, 5285.0, 5265.0 and stop-loss at 5375.0. Validity – 3-5 days.
Long positions can be opened from the level of 5435.0 with the target at 5500.0 and stop-loss at 5400.0. Validity – 3-5 days.

 

[Mikhail Kurakin]

LiteForex analitics. EUR/USD: general analysis

Current trend

At the beginning of the week, the pair is declining, and it is now trading around 1.1630. Today’s EU Markit Manufacturing PMI slightly decreased from 55.0 to 54.9 points.
EUR is under pressure of German government crisis. Leader of the Christian Social Union (CSU) Horst Seehofer intends to leave the post of Internal Minister in Merkel’s government, as he does not agree with the Chancellor's migration policy. CSU members insist on tightening the fight against illegal migration, up to the ban on new migrants entering the country.
On Monday, negotiations between the leaders of the CSU and CDU (Christian Democratic Union, Angela Merkel) are planned to find a compromise in the migration issue. The failure can lead to the disintegration of the German ruling coalition, which will inevitably weaken EUR.

Support and resistance

The price is testing the midline of Bollinger bands 1.1670 (D1) and cannot consolidate above it. In case of German government crisis worsening, the instrument can fall to the levels of 1.1540 (May’s lows area) and 1.1474 (Murrey [–2/8]). The breakout of the midline of Bollinger bands and the level of 1.1718 (Murrey [0/8]) will let the price grow to the level of 1.1840 (Murrey [1/8], the upper border of Bollinger bands). Technical indicators confirm the possibility of growth. Stochastic turns up, MACD histogram decreases in the negative zone.
Resistance levels: 1.1718, 1.1840.
Support levels: 1.1540, 1.1474.

Trading tips

Long positions can be opened above the level of 1.1718 with the target at 1.1840 and stop loss 1.1670.
Short positions can be opened at the level of 1.1600 with the targets at 1.1540, 1.1474 and stop loss around 1.1640.
Implementation period: 3–5 days.