Forex News Analysis by LiteForex

[LiteFXofficial]

USD/JPY: pair declined
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Current trend
Last week, the Japanese Yen gained support when the Bank of Japan decided to keep monetary policy unchanged. BoJ Governor gave a generally favorable outlook of the country’s economy.
At present, the USD/ JPY pair still tends to continue declining.
However, Japan is undergoing a period of a weak growth in Industrial Production, Services PMI and a decline in exports. Moreover, inflation will remain low in the medium term. Thus, BoJ might have to consider further changes to monetary policy.
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Support and resistance
A decline in the pair has stopped at the support level of 120.55 (EMA200 on the daily chart and 61.8% Fibonacci) which is also the lower border of an ascending channel on the daily chart. While the price remains above this level, it tends to grow in the medium term.
The breakout of the resistance levels of 121.35, 121.50 (50.0% Fibonacci), 122.00 (EMA200 and EMA144 on the 4-hour chart), 122.50 (38.2% Fibonacci) would allow the price to strengthen to 123.70 (23.6% Fibonacci), 124.50 and 125.00 (upper border of the ascending channel on the daily chart).
On the 4-hour, daily and weekly charts, OsMA histogram is near the zero line. Amid a decline in trading activity due to the upcoming holidays, the pair is likely to remain near the level of 121.00.
Support levels: 120.55, 120.00, 118.85.
Resistance levels: 121.35, 121.50, 122.00, 122.50, 123.00, 123.70.
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Trading tips
Long positions can be opened from the level of 121.60 with targets at 121.90, 122.00, 122.50, 123.00, 123.50, 123.70, 124.00, 124.50, 125.00 and stop-loss at 121.20.
Short positions can be opened from the level of 120.35 with targets at 120.00, 118.85, 118.00 and stop-loss at 120.75.

[LiteFXofficial]

AUD/USD: growth in oil prices supported AUD
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Current trend
Yesterday, after the Energy Information Administration reported a fall in US crude inventories, the price of oil grew by 3.8%.
Since opening of the trading day, the AUD/USD pair has been strengthening amid a growth in commodity prices. The Australian Dollar gained support as Australia is a large exporter of commodities.
However, in the medium term, the pair tends to continue declining due to different approaches to monetary policy of the Fed and RBA.
Today, attention needs to be paid to Initial Jobless Claims data, due in the US. If the indicator comes in below the forecast, the pair might get another impulse for growth.
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Support and resistance
On the 4-hour and daily charts, OsMA and Stochastic recommend long positions.
The nearest resistance level is 0.7290. If this level is broken out, a growth to 0.7325 (EMA144 on the daily chart) will be possible.
If the price declines below the level of 0.7210, it might move further down to 0.7100 (lower border of an ascending correctional channel on the daily chart).
Support levels: 0.7210, 0.7100, 0.7030, 0.6980, 0.6910.
Resistance levels: 0.7290, 0.7325, 0.7400, 0.7450, 0.7510.
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Trading tips
Short positions can be opened from the level of 0.7220 with targets at 0.7110, 0.7090, 0.7030, 0.6980, 0.6910 and stop-loss at 0.7250.
Long positions can be opened from the level of 0.7310 with targets at 0.7325, 0.7410, 0.7450, 0.7490 and stop-loss at 0.7280.

[LiteFXofficial]

USD/JPY: general analysis
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Current trend
The Japanese Yen continues strengthening against the US Dollar amid the publication of BoJ economic report.
Initial Jobless Claims statistics are due today in the US. Analysts expect the indicator to be down by 1K to 270K. Such dynamics suggests strong labor market conditions and might support the US Dollar.
Tomorrow, attention needs to be paid to Japan’s Unemployment Rate which is expected to increase by 0.1% to 3.2%. Weakness in the labor market affects the country’s economy and the JPY exchange rate.
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Support and resistance
On the daily chart, the pair is trading near the lower MA of Bollinger Bands. The price remains below the MA50, MA100 and MA144, directed parallel and horizontally. MACD histogram is in the negative zone, its volumes are growing; thus, negative dynamics in the pair is likely to develop.
Support levels: 120.12 (lower MA of Bollinger Bands), 118.80, 118.06, 117.20, 116.19.
Resistance levels: 121.73, 122.00, 122.50, 123.60, 124.25, 125.27.
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Trading tips
Long positions can be opened from the level of 120.12 with the target at 121.15 and stop-loss at 119.85.
Short positions can be opened from the level of 119.85 with the target at 119.00 and stop-loss at 120.12.
Validity – 2 days.

[LiteFXofficial]

XAG/USD: pair corrected
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Current trend
Last week the pair slightly strengthened amid closing of short positions by traders prior to Christmas holidays.
In addition, gold and silver prices were supported by growing oil prices that managed to strengthen after the publication of oil reserves data in the US. The data showed that reserves fell by 5.88 million barrels, while experts predicted a 1.5 million barrels growth.
At the same time, the market attention shifts to fresh macroeconomic statistics that are coming out in the US and which could help to determine future changes in monetary policy.
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Support and resistance
Bollinger Bands on the daily chart is moving horizontally while the price range remains unchanged. MACD is growing and giving a weak buy signal. Stochastic is in the overbought zone and trying to turn down.
The indicators recommend waiting for clearer trading signals.
Support levels: 14.30 (local low), 14.20, 14.00, 13.90, 13.82, 13.63 (14 December low).
Resistance levels: 14.48 (local high), 14.63 (7 December high), 14.77, 15.00 (beginning of November high), 15.15, 15.25.
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Tradingtips
Long positions can be opened after the price rebound from the level of 14.20 (with the appropriate indicators signals) with targets at 14.63, 15.00 and stop-loss at 14.00. Validity – 2-4 days.
Short positions can be opened after the breakdown of the level of 14.20 with targets at 14.00, 13.80, 13.60 and stop-loss at 14.50. Validity – 3-4 days.

[LiteFXofficial]

AUD/USD: pair strengthened
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Current trend
Last week the pair strengthened by 100 points amid some weakening in the USD.
Tomorrow data on the Producer Price Index for the fourth quarter is due in Australia. Considering strong decline in oil prices during the last quarter that dragged down all commodities’ prices, the index is unlikely to show a growth. Thus, an absence of inflation growth could force the RBA to ease monetary policy further. At the same time, amid gradual policy tightening in the US the pair will remain under pressure in the medium-term.
Tomorrow attention also needs to be paid to data from the US on Goods Trade Balance, Rebook Index and Consumer Confidence.
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Support and resistance
The pair broke out its trendline and resistance level at 0.7210 but failed to reach the key resistance level at 0.7330 (ЕМА144 on the daily chart).
A breakdown of the levels of 0.7210, 0.7120 (lower border of a correctional upward channel on the daily chart), 0.7100 (December lows) would resume a downward trend towards 0.7030, 0.6980, 0.6910 (year lows).
At the same time, a price consolidation above the levels of 0.7450 (ЕМА200 on the daily chart), 0.7510 (23.6% Fibonacci correction) would return the pair in an uptrend.
On the daily chart, OsMA and Stochastic recommend purchases, while on the 4-hour chart the indicators turned to sales.
Support levels: 0.7210, 0.7120, 0.7100, 0.7030, 0.6980, 0.6910.
Resistance levels: 0.7290, 0.7330, 0.7400, 0.7450, 0.7510.
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Trading tips
Pending sell orders can be placed from the level of 0.7250 with targets at 0.7110, 0.7090, 0.7030, 0.6980, 0.6910 and stop-loss at 0.7280.
Pending buy orders can be placed from the level of 0.7310 with targets at 0.7330, 0.7410, 0.7450, 0.7490 and stop-loss at 0.7280.

[LiteFXofficial]

XAG/USD: general review
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Current trend
Yesterday the pair fell and lost about 50 points.
Market volatility is expected to be low today. Attention needs to be paid to data on the S&P/Case-Shiller Home Price Indices in the US. According to forecasts, the index will fall that might pressure the USD. Also, pay attention to data on Consumer Confidence that is expected to grow by 3.4%.
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Support and resistance
On the 4-hour chart, the pair is trading between the upper and middle MA’s of Bollinger Bands. Moving averages with 50, 100, and 144 periods remain above the price and directed down indicating a negative trend. MACD histogram is in the negative zone and its volumes are growing. ADX is falling and DI lines are directed down indicating a fall in the pair.
Support levels: 13.86, 13.67.
Resistance levels: 14.03, 14.19, 14.40.
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Trading tips
Long positions can be opened from the level of 14.03 with the target at 14.19. Validity – 1 day.
Short positions can be opened after the breakdown of the level of 13.86 with the target at 13.67. Validity – 1 day.

[LiteFXofficial]

XAU/USD: pair remains within range
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Current trend
On Monday, the price of gold declined by 0.7% to $1068 per ounce.
US Fed aims at gradual tightening of monetary policy. As long as the US Dollar will be strengthening, the price of gold is likely to remain under pressure. Borrowing costs for purchase and storage of gold tend to increase.
From 3:30 to 8:00 pm (GMT+2) attention needs to be paid to US news releases, among which Consumer Confidence data for December. The indicator is expected to be up to 93.8 from 90.4 points that will support the US Dollar.
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Support and resistance
In December, the XAU/USD pair has been trading within the range of 1085.00-1050.00.
On the 4-hour chart, OsMA and Stochastic recommend long positions, but a growth in the pair is limited by the resistance levels of 1075.00 (EMA144) and 1080.00 (EMA200 on the 4-hour chart). On the daily chart, the indicators have started giving sell signals. However, due to a lack of drivers, the price is likely to remain within the range.
Fundamental factors create prerequisites for a further decline in the price of gold.
Support levels: 1071.00, 1067.00, 1060.00, 1050.00.
Resistance levels: 1075.00, 1080.00, 1085.00.
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Trading tips
Short positions can be opened from the level of 1068.00 with targets at 1050.00, 1040.00, 1010.00 and stop-loss at 1077.00.
Long positions can be opened from the level of 1082.00 with targets at 1085.00, 1088.00 and stop-loss at 1079.00.

[LiteFXofficial]

XAU/USD: pair remains within range
*
Current trend
On Monday, the price of gold declined by 0.7% to $1068 per ounce.
US Fed aims at gradual tightening of monetary policy. As long as the US Dollar will be strengthening, the price of gold is likely to remain under pressure. Borrowing costs for purchase and storage of gold tend to increase.
From 3:30 to 8:00 pm (GMT+2) attention needs to be paid to US news releases, among which Consumer Confidence data for December. The indicator is expected to be up to 93.8 from 90.4 points that will support the US Dollar.
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Support and resistance
In December, the XAU/USD pair has been trading within the range of 1085.00-1050.00.
On the 4-hour chart, OsMA and Stochastic recommend long positions, but a growth in the pair is limited by the resistance levels of 1075.00 (EMA144) and 1080.00 (EMA200 on the 4-hour chart). On the daily chart, the indicators have started giving sell signals. However, due to a lack of drivers, the price is likely to remain within the range.
Fundamental factors create prerequisites for a further decline in the price of gold.
Support levels: 1071.00, 1067.00, 1060.00, 1050.00.
Resistance levels: 1075.00, 1080.00, 1085.00.
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Trading tips
Short positions can be opened from the level of 1068.00 with targets at 1050.00, 1040.00, 1010.00 and stop-loss at 1077.00.
Long positions can be opened from the level of 1082.00 with targets at 1085.00, 1088.00 and stop-loss at 1079.00.

[LiteFXofficial]

XAU/USD: pair remains within range
*
Current trend
On Monday, the price of gold declined by 0.7% to $1068 per ounce.
US Fed aims at gradual tightening of monetary policy. As long as the US Dollar will be strengthening, the price of gold is likely to remain under pressure. Borrowing costs for purchase and storage of gold tend to increase.
From 3:30 to 8:00 pm (GMT+2) attention needs to be paid to US news releases, among which Consumer Confidence data for December. The indicator is expected to be up to 93.8 from 90.4 points that will support the US Dollar.
*
Support and resistance
In December, the XAU/USD pair has been trading within the range of 1085.00-1050.00.
On the 4-hour chart, OsMA and Stochastic recommend long positions, but a growth in the pair is limited by the resistance levels of 1075.00 (EMA144) and 1080.00 (EMA200 on the 4-hour chart). On the daily chart, the indicators have started giving sell signals. However, due to a lack of drivers, the price is likely to remain within the range.
Fundamental factors create prerequisites for a further decline in the price of gold.
Support levels: 1071.00, 1067.00, 1060.00, 1050.00.
Resistance levels: 1075.00, 1080.00, 1085.00.
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Trading tips
Short positions can be opened from the level of 1068.00 with targets at 1050.00, 1040.00, 1010.00 and stop-loss at 1077.00.
Long positions can be opened from the level of 1082.00 with targets at 1085.00, 1088.00 and stop-loss at 1079.00.

[LiteFXofficial]

Brent: review and forecast

Current trend
Yesterday, the price of Brent crude oil fell when the American Petroleum Institute published its weekly estimate of US crude oil inventories. Last week, crude oil stocks increased by 2.9 million barrels while analysts expected a decline by 2.5 billion barrels.

Support and resistance
Bollinger Bands indicator on the 4-hour chart is directed down so the price is likely to continue declining. Though MACD histogram is in the positive zone, its volumes are falling.
Support levels: 36.80, 36.35, 35.90.
Resistance levels: 38.00, 39.00, 40.00.

Trading tips
Short positions can be opened at the current level with targets at 36.35, 35.90.
Long positions can be opened if the price consolidates above the level of 38.00 with targets at 39.00, 40.00.

[LiteFXofficial]

GBP/USD: general analysis
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Current trend
Nationwide Housing Prices data has been released today in the UK. Despite the indicator came in at 4.5% in annual terms, the GBP/USD pair fell to its April lows. At present, a correction might start – the price has turned up and is trading in the area of 1.4823.
Not much macroeconomic data is released ahead of the New Year holidays. Today, attention needs to be paid to Pending Home Sales statistics, due in the US. Analysts forecast the indicator to come in at 0.5% from 0.2% that might support the US Dollar. Nevertheless, no high trading activity should be expected.
Support and resistance
On the 4-hour chart, MA50, MA100 and MA144 are above the current price and directed down, indicating a fall in the pair. MACD histogram is in the negative zone, and its volumes remain almost unchanged. The DI lines of ADX are directed down; according to the indicator, the price tends to decline.
During the day, the pair is likely to be trading within the channel 1.4791-1.4876.
Support levels: 1.4791 (lower MA of Bollinger Bands).
Resistance levels: 1.4876 (middle MA of Bollinger Bands), 1.4922, 1.4963.
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Trading tips
Long positions can be opened at the current level with the target at 1.4876 and stop-loss at 1.4800.
Short positions can be opened from the level of 1.4876 with the target at 1.4800.
Validity – 1-2 days.

[LiteFXofficial]

GBP/USD: pair trades flat

Current trend
On Wednesday, the GBP/USD pair ended the trading day at the opening level of 1.4815.
Trading volumes remain low today, but the volatility might increase during the publication of ECB Monetary Policy Meeting Accounts and a series of indicators from the US. Tomorrow, financial markets are closed, and trading will resume on Monday, 4 January.

Support and resistance
The GBP/USD pair is trading within a narrow range between 1.800 and 1.4830. The price is in the lower part of a descending channel with the lower border near the level of 1.4770.
On the daily, weekly and monthly charts, OsMA and Stochastic recommend short positions. On the 4-hour chart, the indicators show the pair will be trading flat. In general, the decline in the pair tends to continue.
After the breakdown of 1.4800, the price might move further towards 1.4750, 1.4600 (year lows).
Support levels: 1.4800, 1.4770, 1.4750, 1.4700.
Resistance levels: 1.4880, 1.4925, 1.4985, 1.5025, 1.5080, 1.5100, 1.5140, 1.5230.

Trading tips
Short positions can be opened from the current level with targets at 1.4800, 1.4750 and stop-loss at 1.4860.
Long positions can be opened from the level of 1.4870 with targets at 1.5000, 1.5050, 1.5100, 1.5120, 1.5190 and stop-loss at 1.4820.

[LiteFXofficial]

USD/CAD: general review
Current trend
Last week there were very few macroeconomic publications and the pair was trading in the narrow range. The pair was pressured by poor US data on Jobless Claims and Pending Home Sales that came out worse than forecasts.
Today attention needs to be paid to the ISM Manufacturing PMI in the US that is forecasted to fall to 49.0 points.
Support and resistance
On the daily chart, the pair is trading in the upper Bollinger band. Moving averages with 50, 100 and 144 periods remain below the price and directed up indicating an upward trend in the pair. MACD histogram is in the positive zone and its volumes are falling. ADX is falling, DI lines directed down.
Supportlevels: 1.3772 (middle MA of Bollinger Bands), 1.3591, 1.3592, 1.3454.
Resistancelevels: 1.4000 (middle of December high).
Trading tips
Long positions can be opened from current prices with the target at 1.4000 and stop-loss at 1.3830.
Short positions can be opened after the price consolidation below the level of1.3772 with the target at 1.3660 and stop-loss at 1.3830.

[LiteFXofficial]

USD/JPY: pair fell

Current trend
Since the beginning of the week, the pair significantly fell amid growing tensions in the Middle East where Saudi Arabia on Sunday cut off their diplomatic ties with Iran. At present, investors prefer to switch their funds into safe-haven currencies, one of which is the Yen.
At the same time, the Dollar was unexpectedly supported by poor macroeconomic statistics from the US. The ISM Manufacturing PMI for December fell from 48.6 to 48.2 points, while economists predicted a growth to 49.0 points.

Support and resistance
Bollinger Bands on the daily chart is moving down while the price range is widening. However, the indicator points out to a possibility of the correctional growth in the pair. MACD is falling. Stochastic left the oversold zone and turned horizontally.
The indicators recommend waiting for clearer trading signals.
Support levels: 119.39 (local low), 119.05, 118.67 (yesterday low), 118.24, 118.00.
Resistance levels: 119.69 (local high), 120.00 (psychologically important level), 120.16, 120.34, 120.56, 120.83, 121.00.

Trading tips
Long positions can be opened after the breakout of the level of 120.00 (with the appropriate indicators signals) with the target at 121.00 and stop-loss at 119.50. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 119.00 with the target at 118.00 and stop-loss at 119.60. Validity – 2-4 days.

[LiteFXofficial]

EUR/USD: technical analysis
EUR/USD, D1
On the daily chart, the pair has failed to break out the 61.8% Fibonacci fan line and turned down. The price is falling along the lower MA of Bollinger Bands and is currently forming the second close below the line. The price remains below its moving averages that are directed down. The RSI broke down important support line and falling towards its November supports. The Composite is reaching its critical levels suggesting a room for further decline is limited.
EUR/USD, H4
On the 4-hour chart, the pair is correcting up from the lower MA of Bollinger Bands. The price remains below its moving averages that are directed down. The RSI turned up after it formed a Bullish divergence with the price. The Composite is about to test its yesterday’s resistance level.
Key levels
Support levels: 1.0710 (local lows), 1.0673 (November lows), 1.0550 (December lows).
Resistance levels: 1.0801 (active trade), 1.0837 (local highs), 1.0927 (beginning of the week highs).
Trading tips
Short positions can be opened below the level of 1.0710 with targets at 1.0673, 1.0565 and stop-loss at 1.0745. Validity – 2-3 days.
Long positions can be opened above the level of 1.0837 with the target at 1.0917 and stop-loss at 1.0795. Validity – 2-3 days.

[LiteFXofficial]

AUD/USD: pair is falling

Current trend
Yesterday the pair continued falling amid strengthening since the beginning of the week US Dollar.
The Dollar was supported by growing tensions in the Middle East between Saudi Arabia and Iran. In addition, the pair is under pressure amid slowing Chinese economy. The Caixin China Services PMI for December that was published on Wednesday showed a decline in the index from 51.2 to 50.2 points that was significantly worse than economists predicted. Furthermore, the AiG Performance of Services Index in Australia fell in December from 48.2 to 46.3 points.

Support and resistance
Bollinger Bands on the daily chart is turning horizontally while the price range is widening. At the same time, the indicator formed a signal for correctional growth as the price has left the lower border of the range. MACD is falling and giving a very strong sell signal. Stochastic is in the oversold zone and trying to turn sideways, thus indicating a possibility of an upward correction.
The indicators recommend waiting for clearer trading signals.
Support levels: 0.7042 (local low), 0.7015, 0.6981 (end of September low), 0.6936 (29 September low), 0.6908 (4 September low).
Resistance levels: 0.7068 (local high), 0.7100 (psychologically important level), 0.7128, 0.7158, 0.7183, 0.7200 (5 January high), 0.7234, 0.7259.

Trading tips
Long positions can be opened after the price rebound from the level of 0.7015 (with the appropriate indicators signals) with targets at 0.7130, 0.7160, 0.7200 and stop-loss at 0.6960. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 0.7015 with the target at 0.6900 and stop-loss at 0.7070. Validity – 2-3 days.

[LiteFXofficial]

EUR/USD: technical analysis
EUR/USD, D1
On the daily chart, the pair is correcting down from the middle MA of Bollinger Bands as it bounced off the top border of a descending channel. The price remains below the EMA130 and EMA65, both directed slightly down. The RSI failed to retest its end of December resistance and turned down. The Composite is about to test its longer MA.
EUR/USD, H4
On the 4-hour chart,the pair is falling from the upper MA of Bollinger Bands after it broke out the line few days ago.The price remains on the level with the EMA130 and EMA65 that are horizontal. The RSI bounced off the overbought zone and falling. The Composite is about to test its longer MA. The MFI turned down suggesting short-term buying pressure is falling.
Key levels
Support levels: 1.0834 (short-term trendline), 1.0798 (December lows), 1.0708 (local lows).
Resistance levels: 1.0939 (upper border of the channel), 1.0993 (local highs), 1.1059 (December highs).
Trading tips
Short positions can be opened from the level of 1.0824 with the target at 1.0743 and stop-loss at 1.0865. Validity – 1-2 days.
Long positions can be opened from the level of 1.0944 with the target at 1.0991 and stop-loss at 1.0926. Validity – 1-2 days.

[LiteFXofficial]

XAU/USD: general review

Current trend
Gold continues strengthening amid economic crisis in China, where within the first few minutes of trade the CSI300 index fell by almost 7% thus forcing the authorities to stop operations on the stock market.
In addition, markets are worried about Chinese exchange reserves that in 2015 shrank by 512 billion Dollars. According to experts, the biggest chunk of it was spent trying to artificially support of the Yuan. The Chinese government also introduced limits on Dollar purchases thus trying to stabilise the national currency.
Therefore, due to falling oil prices and instability in China the gold is likely to keep strengthening in the near terms.

Support and resistance
Support levels: 1097.66.
Resistance levels: 1112.97.

Trading tips
Long positions can be opened from the level of 1100.00 with the target at 1147.00 and stop-loss at 1090.00.

[LiteFXofficial]

NZD/USD: general review

Current trend
Yesterday the pair was in an upward correction after a significant fall of the previous week.
The pair is pressured by slowing Chinese economy, strengthening Dollar that found a significant support after the publication of strong macroeconomic statistics on the US labour market last Friday, and falling dairy prices.

Support and resistance
On the 4-hour chart, the pair is trading in the lower Bollinger band. Moving averages with 50, 100 and 144 periods remain above the price and directed down indicating a descending trend in the pair. MACD histogram is in the negative zone while its volumes remain unchanged. ADX suggest a fall in the pair, DI lines directed down.
Support levels: 0.6505 (lower MA of Bollinger Bands, last week lows).
Resistance levels: 0.6593, 0.6679, 0.6715, 0.6771, 0.6834, 0.6859, 0.6881.

Trading tips
Short positions can be opened from the level of 0.6540 with the target at 0.6510 and stop-loss at 0.6560. Validity – 1 day.
Pending buy orders can be placed at the level of 0.6510 with the target at 0.6560 and stop-loss at 0.6500. Validity – 1 day.

[LiteFXofficial]

AUD/USD: pair in correction

Current trend
The pair is in correction after a significant fall of the begging of the year.
The pair was supported by today’s data on Trade Balance from China that came out better than expectations and slightly calmed worries on the market regarding the Chinese economy.
At the same time, the pair remains under pressure amid strengthening US Dollar, falling commodities’ prices and still continuing crisis on the Chinese stock market.
Tomorrow attention needs to be paid to data on the Australian labour market for December. The Unemployment Rate is expected to increase from 5.8% to 5.9%.

Support and resistance
A breakout of the level of 0.7070 (ЕМА200 on the hourly chart, ЕМА50 on the 4-hour chart) would send the pair towards 0.7100 (December lows), 0.7145 (ЕМА200, ЕМА144 on the 4-hour chart), 0.7200 (upper border of a descending channel on the 4-hour chart).
On the 4-hour chart, OsMA and Stochastic signal purchases, and start turning up on the daily chart as well.
Support levels: 0.6980, 0.6910.
Resistance levels: 0.7070, 0.7100, 0.7145, 0.7200, 0.7290.

Trading tips
Pending sell orders can be placed at the level of 0.6970 with targets at 0.6910, 0.6880, 0.6810 and stop-loss at 0.7010.
Pending buy orders can be placed at the level of 0.7080 with targets at 0.7110, 0.7145, 0.7200, 0.7300 and stop-loss at 0.7030.

[LiteFXofficial]

EUR/USD: general review

Current trend
The EUR/USD pair continues strengthening.
Today, data on the labour market is due to be published in the US. Continuing Jobless Claims are expected to fall to 2.215 million that could support the US Dollar.
Also today, Fed’s Bullard speech is due regarding perspectives for the American economy. Experts do not expect interest rates to be mentions in the speech, thus strong reaction on the market is unlikely.

Support and resistance
In the short-term, the pair is expected to grow to its resistance at the level of 1.0965 where it is going to reverse down.
Support levels: 1.0714.
Resistance levels: 1.0965.

Trading tips
Open short positions from the level of 1.0965 with the target at 1.0825 and stop-loss at 1.1000.

[LiteFXofficial]

AUD/USD: general review

Current trend
Yesterday the pair significantly strengthened amid falling US Dollar that was pressured after the publication of poor data on Jobless Claims in the US. At the same time, despite increased Home Loans in Australia, that usually supports the AUD the pair is falling today.
Today extra attention needs to be paid to data on Retail Sales in the US. According to forecasts, the index will fall to 0.0% that might pressure the USD.

Support and resistance
On the daily chart, the pair is trading near the lower MA of Bollinger Bands. Moving averages with 50, 100 and 144 periods remain above the price and directed down indicating a downward trend in the pair. MACD histogram is in the negative zone and its volumes are slowly growing.
Support levels: 0.6935, 0.6910, 0.6880, 0.6830, 0.6800.
Resistance levels: 0.6983, 0.7015, 0.7068, 0.7135, 0.7194.

Trading tips
Open short positions after the price consolidation below the level of 0.6860 with the target at 0.6800 and stop-loss at 0.6890.
Long positions can be opened form the level of 0.6935 with the target at 0.7000 and stop-loss at 0.6900.

[LiteFXofficial]

EUR/USD: pair is growing

Current trend
In the end of last week, the pair strengthened.
The Euro was supported on Friday by poor macroeconomic statistics from the US, where Retail Sales for December fell by 0.1%, while economists predicted a zero change. Retail Sales excluding Autos shrank by 0.1%, against a forecasted growth of 0.2%. In addition, Industrial Production data showed a decline of 0.4%, instead of a predicted growth of 0.2%. December, thus, was the third consecutive month of the decline of the index.

Support and resistance
Bollinger Bands on the daily chart is moving horizontally, while the price range tends to narrow. MACD is slowly growing and giving a very weak buy signal. Stochastic is turning horizontally as it significantly moved away from the overbought zone.
The indicators recommend waiting for clearer trading signals.
Support levels: 1.0900 (local low), 1.0867, 1.0795 (7 January low), 1.0762, 1.0710 (5 January low), 1.0673, 1.0638, 1.0600.
Resistance levels: 1.0946 (local high), 1.1000 (psychologically important level), 1.1059 (15 December high), 1.1100, 1.1153.

Trading tips
Long positions can be opened after the price reverse near the level of 1.0867 (with the appropriate indicators signals) with the target at 1.1000 and stop-loss at 1.0800. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 1.0867 with the target at 1.0710 and stop-loss at 1.0940. Validity – 2-3 days.

[LiteFXofficial]

EUR/USD: general analysis

Current trend
The EUR/USD pair is trading below the key resistance level of 1.1000. The European currency remains under pressure from a range of fundamental factors.
France’s economy is facing difficulties and needs additional monetary support of about 2 billion euros, according to a preliminary estimate. Unemployment rate, which is more than 10%, and domestic security are seen as the key issues for the French government. At the same time, the President stated the current situation will not affect tax rate and amount of social benefits.
Today, attention needs to be paid to Consumer Price Index data, released in Germany. If the indicator comes in below 0.3%, ECB might have to introduce additional stimulus measures that will add pressure on the European currency.

Support and resistance
Support level: 1.0825.
Resistance level: 1.1000.

Trading tips
Long positions can be opened from the level of 1.1000 with the target at 1.1140 and stop-loss at 1.0950.
Short-term short positions can be opened after the breakdown of the level of 1.0850 with the target at 1.0800.

[LiteFXofficial]

XAU/USD: general review

Current trend
The price of gold remains below the level of 1097.66 where it was trading on high volumes last Friday.
According to forecasts, production of gold is declining due to the absence of new fields that could lead in the long-term to increase in the price. In 2016, its output could shrink by 3%. In addition, the price is supported by instability in the Middle East and continuing fall in oil prices.
At the same time, the price remains under pressure due to a likeliness of monetary policy tightening in the US that strengthens the Dollar.

Support and resistance
Support levels: 1071.17.
Resistance levels: 1097.66.

Trading tips
Long positions can be opened from the level of 1097.66 with the target at 1112.47 and stop-loss at 1090.00.

[LiteFXofficial]

XAG/USD: technical analysis

XAG/USD, D1
On the daily chart, the pair is moving along the middle MA of Bollinger Bands. The price remains below the EMA50, EMA100 and EMA144 that are directed down. MACD histogram is in the negative zone and its volumes are barely changing. DI lines are moving up, while ADX is horizontal.

XAG/USD, H4
On the 4-hour chart, the pair is trading in the upper Bollinger band. The price remains below the EMA100 and EMA144, but above the EMA50, all directed horizontally. MACD histogram is in the positive zone and its volumes are very low. DI lines are moving down, while ADX is horizontal.

Key levels
Support levels: 14.00, 13.85, 13.67.
Resistance levels: 14.15, 14.39, 14.75, 14.99, 15.28, 15.51, 16.15, 16.34.

Trading tips
Pending sell orders can be placed at the level of 14.15 with targets at 14.00, 13.85 and stop-loss at 14.30. Validity – 1-2 days.
Pending buy orders can be placed at the level of 13.85 with the target at 14.25 and stop-loss at 13.67. Validity – 1-2 days.

[LiteFXofficial]

USD/CAD: pair growth and oil prices fall

Current trend
The Bank of Canada holds its monetary policy meeting today. As BoC Governor Stephen Poloz has repeatedly stated, the Regulator aims at keeping loose monetary policy and considers a possibility of a rate cut to -0.5%.
The Canadian currency is declining against the US Dollar amid a sharp fall in oil prices. On Tuesday, the International Energy Agency reported oil supply might increase by 1.5 barrels per day in next six month. Moreover, oil prices are under pressure due to unfavorable conditions in global stock markets, China's stock market crash in particular.
In the given situation, the Bank of Canada might choose to wait on the sidelines and keep its interest rate on hold at 0.5% that, however, is unlikely to strengthen the national currency.

Support and resistance
Since the beginning of the year, USD/CAD pair has grown by more than 800 points.
OsMA and Stochastic on all timeframes, from 4-hour to monthly, recommend long positions. Any decline in the pair should be seen as a short-term correction.
Support levels: 1.4575, 1.4565, 1.4500, 1.4450, 1.4400.
Resistance levels: 1.4700.

Trading tips
Buy Stop orders can be placed at the level of 1.4710 with targets at 1.4800, 1.4900 and stop-loss at 1.4670.
Sell Stop orders can be placed at the level of 1.4550 with targets at 1.4450, 1.4400 and stop-loss at 1.4580.

[LiteFXofficial]

EUR/USD: general review

Current trend
Yesterday the pair fell amid growing anxiety on the market due to declining oil prices. In addition, the Euro remained under pressure prior to the ECB Interest Rates Decision that is due later today. The decision could significantly affect dynamics in the pair.
At the same time, the pair was supported by data on the Consumer Price Index from the US that came out worse than expectations. In December, the index fell by 0.1%.

Support and resistance
On the daily chart, the pair is trading along the middle MA of Bollinger Bands. Moving averages with 50, 100 and 144 periods remain above the price and directed horizontally. MACD histogram is near the zero line and its volumes are very low. DI lines are moving in opposite directions, while ADX is horizontal.
Support levels: 1.0863, 1.0770 (middle MA of Bollinger Bands), 1.0613, 1.0525 (beginning of December 2015 lows).
Resistance levels: 1.0900, 1.0915, 1.0945, 1.0995, 1.1057 (middle of December 2015 highs).

Trading tips
Long positions can be opened from the level of 1.0915 with targets at 1.0945, 1.0995 and stop-loss at 1.0900. Validity – 1-2 days.
Short positions can be opened from the level of 1.0863 with targets at 1.0802, 1.0770 and stop-loss at 1.0890. Validity – 1-2 days.

[LiteFXofficial]

AUD/USD: growth might resume

Current trend
On Thursday, the AUD/USD pair tested the level of 0.6950, the 23.6% Fibonacci correction level. The Australian currency managed to strengthen when the US released not so favorable December’s data on inflation. Though Consumer Price Index came in at 0.7% in annual terms, it was 0.1% below the forecast. In monthly terms, the indicator was down to -0.1%. However, the pair is still under pressure from a gradual slowdown in China’s economy as the country is the largest trading partner of Australia.

Support and resistance
The pair is heading to 0.6895, the middle MA of Bollinger Bands. The breakdown of this level allows the pair to continue falling to 0.6835 and 0.6800. Alternatively, if the price turns up and overcomes the 23.6% Fibonacci level, it might grow further to 0.7020 and 0.7080.
Generally, according to technical indicators, the pair tends to grow. Bollinger Bands indicator is turning up. MACD histogram is in the negative zone, its volumes are falling. Only Stochastic lines have crossed each other and turned down, forming a sell signal.
Support levels: 0.6950, 0.7020, 0.7080.
Resistance levels: 0.6895, 0.6835, 0.6800.

Trading tips
Long positions are preferable and can be opened from the level of 0.6950 with targets at 0.7020, 0.7080. Moreover, Buy Limit orders can be placed at the level of 0.6895 with the target at 0.6950.
If the price consolidates below the level of 0.6895, short positions can be opened with targets at 0.6835 and 0.6800.

[LiteFXofficial]

XAU/USD: general review

Current trend
The price of gold continues growing amid yesterday’s news regarding a possibility of the QE program expansion by the ECB. In the nearest future, the price is likely to grow to the level of 1112.50 where the pair traded at high volumes. After that, the price will fall.

Support and resistance
The RSI is below the 70 mark indicating that the growth can continue to the level of 1115.00.
Support levels: 1074.52 (moving average with 200 period).
Resistance levels: 1112.50.

Trading tips
Short positions can be opened from the level of 1112.50 with the target at 1074.80 and stop-loss at 1114.00.
Long positions can be opened after the price consolidation above the level of 1114.00.

[LiteFXofficial]

USD/JPY: no change in trend yet

Current trend
A growth in stock indices followed ECB President Mario Draghi comments on future monetary policy in the eurozone. Japanese stock index NikkeiStockAverage also gained support when an aide to Japanese Prime Minister pointed out that further easing of monetary policy is necessary. Together with the index, the USD/JPY pair is growing as well. If the Bank of Japan introduces additional stimulus measures, the pair will manage to gain back its recent losses.
Today, attention needs to be paid to Markit Manufacturing PMI for January and CB Leading Indicator for December, due in the US. If the indicators come in above the forecast, the USD/JPY pair will strengthen.

Support and resistance
During the Asian session, the USD/JPY pair grew by 30 points from the level of 117.70 and continues moving up, having strengthened above the level of 118.20.
OsMA and Stochastic on the 4-hour and daily charts recommend long positions. However, as long as the price remains below the level of 118.80, no significant growth is expected.

Trading tips
Long positions can be opened from the level of 118.40 with targets at 118.80, 119.20, 119.65, 120.00, 120.55 and stop-loss at 117.80.
Short positions can be opened from the level of 117.30 with targets at 117.00, 116.50, 116.10 and stop-loss at 117.80.

[LiteFXofficial]

USD/CAD: pair fell

Current trend
In the end of last week, the pair significantly fell amid substantial growth in oil prices.
In addition, the Canadian Dollar was supported by strong macroeconomic data from Canada. Retail Sales in November 2015 grew by 1.7% while economists predicted a 0.2% growth. At the same time, the Consumer Price Index in December grew by 1.6%, against a 1.4% growth in the previous month that was, however, slightly worse than forecasts. Similar index by the Bank of Canada in December fell by 0.4% that was also a little worse than expectations.

Support and resistance
Bollinger Bands on the daily chart turned horizontally while the price range is narrowing. MACD is falling and giving a very strong sell signal. Stochastic reached its critical level in the oversold zone thus limiting further fall potential.
The indicators recommend waiting for clearer trading signals.
Support levels: 1.4100 (local low), 1.4050, 1.4000 (psychologically important level), 1.3915, 1.3850, 1.3780, 1.3700.
Resistance levels: 1.4169 (local high), 142.00, 1.4245, 1.4315 (21 January high), 1.4400, 1.4450, 1.4500, 1.4609, 1.4700 (20 January high).

Trading tips
Long positions can be opened after the price rebound from the level of 1.4100 (with the appropriate indicators signals) with targets at 1.4200, 1.4250 and stop-loss at 1.4000. Validity – 1-2 days.
Short positions can be opened after the breakdown of the level of 1.4100 with the target at 1.4000 and stop-loss at 1.4150. Validity – 1-3 days.

[LiteFXofficial]

USD/JPY: ahead of BoJ meeting
*
Current trend
On Friday, the Bank of Japan releases its decisions on interest rates and quantitative and qualitative monetary easing programme. Last week, BoJ Governor stated the Regulator will not hesitate to adjust policy as needed to achieve the inflation target of 2%.
Amid a slowdown in Japan’s economic growth and, therefore, different approaches to monetary policy in the US and Japan, the USD/JPY pair is likely to grow in the medium term.
*
Support and resistance
By the opening of the European session, the USD/JPY pair declined by almost 50 points, but then managed to gain back some of its losses, having found a support at 117.90 (EMA200, EMA144 on the hourly chart, EMA50 on the 4-hour chart).
OsMA and Stochastic on the monthly chart recommend short positions. The indicators on the daily chart are giving sell signals; on the weekly chart, they have started turning to long positions as well. However, according to the indicators on the 4-hour chart, the USD/JPY pair is likely to continue moving down in the short term.
After the breakdown of the support levels of 117.90 (EMA200, EMA144 on the hourly chart, EMA50 on the 4-hour chart) and 117.40, a decline will continue towards 116.00 (lower border of a descending channel on the daily chart).
As an alternative scenario, the price might overcome the resistance levels of 118.70 (EMA144), 119.20 (EMA200 on the 4-hour chart) and continue growing towards 120.00 (EMA200 on the daily chart), 120.55 (61.8% Fibonacci and ЕМА144 on the daily chart).
Support levels: 117.90, 117.40, 117.00.
Resistance levels: 118.70, 119.20, 120.00, 120.55.
*
Trading tips
Long positions can be opened from the level of 118.40 with targets at 118.70, 119.20, 120.00, 120.50 and stop-loss at 117.80.
Short positions can be opened from the level of 117.30 with targets at 117.00, 116.50, 116.10 and stop-loss at 117.70.

[LiteFXofficial]

NZD/USD: investors waiting for interest rates decisions
*
Current trend
This week, the NZ Dollar, like other commodity currencies, is losing its positions again, following a decline in the price of oil. The price of oil is under pressure from concerns that an oversupply of the global oil market might deepen.
On Wednesday, market participants will turn their attention to the publications of interest rate decisions in the US and New Zealand. Further dynamics in the NZD/USD pair will largely depend on these releases.
*
Support and resistance
The pair is trading at the middle MA of Bollinger Bands, 0.6480. The breakout of this level leads to a growth to 0.6540. Otherwise, the price might decline back to 0.6420. In the short term, the pair is likely to remain within the range of 0.6540-0.6420.
Technical indicators give mixed signals. Bollinger Bands are directed horizontally. MACD histogram is about to enter the negative zone and form a sell signal. Stochastic is directed up.
Support levels: 0.6420, 0.6370.
Resistance levels: 0.6480, 0.6540, 0.6625.
*
Trading tips
Long positions can be opened from the level of 0.6490 with the target at 0.6540. Pending sell orders should be placed at the level of 0.6540 with targets at 0.6480 and 0.6420.

[LiteFXofficial]

EUR/USD: general review
*
Current trend
The pair continues growing amid some weakening in the USD.
The American currency remains under pressure prior to the Fed Interest Rate Decision that is due today. Experts predict that monetary policy will stay unchanged. Furthermore, due to problems in China and falling oil prices the regulator might delay the next rate hike until summer that would significantly support the pair.
*
Support and resistance
Support levels: 1.0787 (active trade), 1.0820.
Resistance levels: 1.0977, 1.1370.
*
Trading tips
Long positions can be opened from the level of 1.0820 with the target at 1.1370 and stop-loss at 1.0780.

[LiteFXofficial]

USD/CHF: waiting for the Fed decision
*
Current trend
Today the pair is falling amid some weakening in the US Dollar that remains under pressure prior to the Fed Interest Rate Decision. Experts do not expect the rate to be hiked. At the same time, investors will focus their attention on commentaries by the regulator, in which there could be announced that monetary policy tightening is going to be delayed that would substantially pressure the pair.
*
Support and resistance
On the hourly, 4-hour and weekly charts, the pair is moving along ascending channels.
A downward correction can continue to the levels of 1.0120 (middle of the channel on the 4-hour chart), 1.0100 (ЕМА50), 1.0040 (ЕМА144, lower border of the channel), 1.0000 (ЕМА50 on the daily chart). From further fall the pair is prevented by support levels at 0.9855 (ЕМА144 on the daily chart), 0.9830 (December 2015 lows).
At the same time, a consolidation above the level of 1.0195 would send the pair towards 1.0400 (upper border of the channel on the weekly chart).
On the 4-hour and daily charts, OsMA and Stochastic signal sales.
Support levels: 1.0120, 1.0100, 1.0040, 1.000, 0.9975, 0.9830, 0.9765.
Resistance levels: 1.0195, 1.0400.
*
Trading tips
Pending sell orders can be placed at the level of 1.0130 with targets at 1.0100, 1.0040, 1.0000, 0.9855 and stop-loss at 1.0160.
Pending buy orders can be placed at the level of 1.0185 with targets at 1.0200, 1.0260, 1.0300 and stop-loss at 1.0140.

[LiteFXofficial]

XAG/USD: technical analysis
*
XAG/USD, D1
On the daily chart, the pair is trading above the upper MA of Bollinger Bands. The price remains below the EMA100 and EMA144, both directed horizontally. MACD histogram is in the positive zone, its volumes are insignificant. The DI lines are directed down; ADX is growing.
*
XAG/USD, H4
On the 4-hour chart, the pair is trading in the area of the upper MA of Bollinger Bands. The price remains above the EMA50, EMA100 and EMA144, all directed up. MACD histogram is in the positive zone. The DI lines are moving in different directions; ADX is falling.
*
Support and resistance
Support levels: 14.37, 14.25, 13.99, 13.78, 13.68.
Resistance levels: 14.52, 14.70, 14.95, 15.28, 15.51, 16.13, 16.34.
*
Trading tips
Long positions can be opened from the level of 14.52 with targets at 14.70, 14.95 and stop-loss at 14.37.
Short positions can be opened from the level of 14.37 with targets at 14.25, 14.00 and stop-loss at 14.50.
Validity – 1-2 days.

[LiteFXofficial]

USD/JPY: general review
*
Current trend
The pair continues growing even though the Fed at yesterday’s meeting left the interest rate unchanged.
At the same time, the Bank of Japan is expected to expand its stimulation program to reach the inflation target of 2% that would lead to further fall in the Yen. Furthermore, cheaper national currency would allow increasing Japanese exports and making them more competitive, that would have a positive effect on the economy.
According to forecasts, the pair can grow to the level of 125.00.
*
Support and resistance
Support levels: 117.85.
Resistance levels: 119.10.
*
Trading tips
Open long positions from the level of 119.20 with the target at 122.35 and stop-loss at 118.90.

[LiteFXofficial]

EUR/USD: general review

Current trend
Today the pair continued growing despite the publication of mixed data in the eurozone. The Producer Price Index for December fell to -0.8% that was substantially worse than forecasts of economists. At the same time, the Unemployment Rate slightly fell as well, from 10.5% to 10.4%. Therefore, continuous decline in prices could force the ECB to expand its stimulation program or cut interest rates further, either of which would significantly pressure the Euro.

Support and resistance
Support levels: 1.0894.
Resistance levels: 1.0943.

Trading tips
Short positions can be opened from the level of 1.0943 with the target at 1.0890 and stop-loss at 1.0955.

[LiteFXofficial]

AUD/USD: pair resumed fall

Current trend
Yesterday the pair significantly fell after the RBA decision on interest rates. As was expected, the regulator left the rate unchanged at 2%.
At the same time, in its Rate Statement the regulator noted that it does not rule out further monetary policy easing this year if the economy continues slowing down due to the outside factors. It also noted that inflation is likely to remain very low in the medium-term.

Support and resistance
Bollinger Bands on the daily chart is moving up while the price range is narrowing. MACD is turning down and forming a sell signal. Stochastic is falling.
The indicators recommend short positions.
Support levels: 0.7015 (local low), 0.6981, 0.6936, 0.6900 (21 January low), 0.6875, 0.6850, 0.6826 (15 January low).
Resistance levels: 0.7045 (local high), 0.7068, 0.7100, 0.7128 (local high), 0.7158, 0.7183, 0.7200 (5 January high).

Trading tips
Short positions can be opened after the breakdown of the level of 0.7015 with the target at 0.6900 and stop-loss at 0.7060. Validity – 2-3 days.
Long positions can be opened after the price rebound from the level of 0.7015 (with the appropriate indicators signals) with the target at 0.7100 and stop-loss at 0.6960. Validity – 2-3 days.

Analytics from LiteForex