Forex Analysis by LiteForex

[Mikhail Kurakin]

LiteForex: Brent Crude Oil: Murrey analysis

Current trend

In the H4 chart the price has been trading within the range of 63.28 ([5/8])-62.50 ([4/8]) for the third session in a row. The key level for the “bulls” seems to be 63.28. In case of its breakthrough growth may continue to 64.06 ([6/8]) and 64.84 ([7/8]). However, the drivers on the week before Christmas may be insufficient, and it will remain within the said trading range.

Generally, technical indicators show the possibility of growth: Bollinger Bands start to rise, and Stochastic is also directed upwards. One may speak about considerable reduction to 61.72 ([3/8]) and 60.93 ([2/8]) only after the price consolidates below 62.50 ([4/8]) which seems unlikely in the short term.

Support and resistance

Support levels: 62.50 ([4/8], central line of Murrey range), 61.72 ([3/8], bottom of the channel), 60.93 ([2/8])
Resistance levels: 63.28 ([5/8], top of the channel), 64.06 ([6/8]), 64.84 ([7/8]).

Trading tips

In this situation buy positions should be opened if the price consolidates above 63.28 with targets at 64.06, 64.84 and stop-loss at 63.00.
Short positions should be opened if the price moves away from 63.28 with targets at 62.50, 61.72 and stop-loss at 63.45.

 

[Mikhail Kurakin]

LiteForex: Brent Crude Oil: general review

Current trend

Oil prices opened the week with a slight correction, but as a whole remain within the uptrend. Prices are supported by the optimism of Iraqi energy minister Jabbar Al-Luaibi, who said on Monday that the balance in the oil market can be reached in the first quarter of next year, and prices will grow due to the increase in demand from India and China. Market participants are also encouraged by the data of Baker Hughes, according to which the number of drilling rigs in the US does not increase for the second week in a row and now stands at 747 units. It should be noted that the number of drilling rigs peaked in August (768 units) and since then has fluctuated around 730-750. This may mean that investors no longer commit in the development of production capacities and are preparing to make profit from existing ones. We should also note that in the short term, the easing of oil prices could be affected by the commissioning of the Fortis pipeline stopped in mid-December due to a fracture. Currently, it is tested it with high pressure.

Support and resistance

Currently, the price is trying to begin correction, but its development to the level of 63.28 (Murrey [1/8]), 62.50 (Murrey [0/8]) will become possible when fixing the price below 64.06 (Murrey [2/8], middle line Bollinger Bands). Otherwise, the price may enter the Murrey channel and reach 65.62 (Murrey [4/8]) and 66.40 (Murrey [5/8]). Technical indicators do not provide a clear signal. Bollinger Bands pointing up, confirming the uptrend, Stochastic tries to turn around at the overbought zone.
Support levels: 64.06, 63.28, 62.50.
Resistance levels: 64.84, 65.62, 66.40.

Trading tips

Under current conditions, it is possible to sell below 64.06 with targets 63.28, 62.50 and stop-loss at 64.40. Buying is worth above 64.84 with targets 65.62, 66.40 and protective order 64.50.

 

[Mikhail Kurakin]

LiteForex: AUD/USD: Fibonacci analysis

On the 4-hour chart the price has been growing for the third week and it has reached the level of 0.7770.
In case of reversal of the price, the downward correction to the level of 0.7705 (correction 23.6%, the middle line of Bollinger Bands) is possible. If the price is set above the level of 0.7770, the further growth is possible, but its potential seems restricted, as Stochastic is in the overbought area and can form a sell signal in the nearest future.
On the daily chart the price is tending to the corrections cluster at the area of 0.7780 (50.0% and 38.2%); in addition, in this area the downward correctional fan line 38.2% goes. All the facts, supported by Stochastic, which has entered the overbought area, shows the possibility of the fall to the levels of 0.7700 (correction 50.0%) and 0.7615 (correction 61.8%, the middle line of Bollinger Bands). If the price is set above the level of 0.7780 the further growth to the levels of 0.7845 (correction 61.8%) and 0.7885 (correction 23.6%) is possible, but the price should break through the downward fan.

Trading tips

Short positions can be opened at the level of 0.7780 with the targets at 0.7700, 0.7615 and stop loss at 0.7820.

Alternative scenario

Long positions can be opened at the level of 0.7800 with the targets at 0.7845, 0.7885 and stop loss around 0.7870.

 

[Mikhail Kurakin]

LiteForex: AUD/USD: Fibonacci analysis

On the 4-hour chart the price has been growing for the third week and it has reached the level of 0.7770.
In case of reversal of the price, the downward correction to the level of 0.7705 (correction 23.6%, the middle line of Bollinger Bands) is possible. If the price is set above the level of 0.7770, the further growth is possible, but its potential seems restricted, as Stochastic is in the overbought area and can form a sell signal in the nearest future.
On the daily chart the price is tending to the corrections cluster at the area of 0.7780 (50.0% and 38.2%); in addition, in this area the downward correctional fan line 38.2% goes. All the facts, supported by Stochastic, which has entered the overbought area, shows the possibility of the fall to the levels of 0.7700 (correction 50.0%) and 0.7615 (correction 61.8%, the middle line of Bollinger Bands). If the price is set above the level of 0.7780 the further growth to the levels of 0.7845 (correction 61.8%) and 0.7885 (correction 23.6%) is possible, but the price should break through the downward fan.

Trading tips

Short positions can be opened at the level of 0.7780 with the targets at 0.7700, 0.7615 and stop loss at 0.7820.

Alternative scenario

Long positions can be opened at the level of 0.7800 with the targets at 0.7845, 0.7885 and stop loss around 0.7870.

 

[Mikhail Kurakin]

LiteForex: USD/JPY: general review

Current trend

US dollar continues to reduce against the majors due to low trading volumes. Market players are cautious waiting for the release of the minuted of the Fed’s December meeting. No important macroeconomic releases are expected from Japan until the end of the week. At the same time, US currency is under pressure from central banks of other countries, as the growth of the global economy in 2017 catalyzes the tightening of the monetary policy in a number of key states leading to the reduction of differences between the rates.

The main event of today is the release of the minutes of December Fed’s meeting. Investors hope to receive new data on further rates of the US fiscal policy. Moreover, market volatility may be caused by simultaneous release of gradual inflation build-up index and industrial PMI, as well as the data on construction expenses in the USA. The pair is extremely sensitive to inflation indicators, as its low level in the USA prevents the Fed from implementing its monetary policy plans.

Support and resistance

On the H4 chart the instrument has been corrected to 112.25. A strong support level is 112.00. Breaking through it will be a strong signal for the opening of short positions. Bollinger Bands are directed downwards, and the price range has slightly reduced. A key resistance level is 112.40. MACD histogram has reached its minimal level in the negative zone, and the strong sell signal is still valid. Stochastic fails to give a clear signal for entering the market.
Support levels: 111.60, 111.80, 112.00, 112.25.
Resistance levels: 112.40, 112.60, 112.80, 113.15, 113.35.

Trading tips

Short positions may be opened below the level of 112.25 with targets at 111.80, 111.60 and stop-loss at 112.50. The period of implementation is 1-2 days.
Long positions may be opened from the level of 112.45 with targets at 112.85 and stop-loss at 112.25. The period of implementation is 1 day.

 

[Mikhail Kurakin]

LiteForex: Brent Crude Oil: general analysis

Current trend

Oil prices are growing.
Yesterday Brent went up by 2.40% and reached the level of 67.96, which is last 3-years maximum. The instrument is supported by preliminary API Crude Oil Stocks change data, which reflect the decrease of the resources by 4.992 million barrel in a week. EIA Crude Oil Stocks change release is due at 17:30 (GMT+2) today. If the data confirms the decrease, Brent will be significantly supported.
The growth of the prices is supported by tense situation in Iran, where anti-Government protests are expressed all over the country.

Support and resistance

Technical indicators reflect the maintenance of the upward trend, but the technical correction possibility is not excluded.
Bollinger Bands are pointed upwards. MACD volumes are growing in the positive zone, forming a buy signal. Stochastic is in the overbought zone, which can reflect the reversal of the price.

The instrument is now testing the level of 67.96 (Murray [7/8]). If it cannot consolidate above this level, the correction to the levels of 67.18 (Murray [6/8]), 66.76 (the middle line of Bollinger Bands) is possible.
The breakout of the level 67.96 will let the price grow to the level of 68.75 (Murray [8/8]).
Resistance levels: 67.96, 68.75.
Support levels: 67.18, 66.40, 65.62.

Trading tips

Long positions can be opened above the level of 67.96 with the target at around 68.75 and stop loss 67.75.
Short positions can be opened below the level of 67.18 with the targets at around 66.40–65.62 and stop loss 67.40.

 

[Mikhail Kurakin]

LiteForex: GBP/USD: the pound is pressured by permutations in the British government

Current trend

Last week, the pair tested 1.3600 mark, but today it adjusted to the level of 1.3550 (Murrey [7/8]). The uncertainty of the market is caused by the expectation of the reshuffle in the government of Theresa May, which is to be held on Monday and Tuesday.

However, it is expected that the reshuffle will not affect key cabinet ministers, such as David Davis, Philip Hammond, and Boris Johnson. Perhaps the First Secretary of State, the actual deputy prime minister, will be the current health minister Jeremy Hunt, a consistent supporter of Brexit. Earlier this position was occupied by Damian Green, but in December he was forced to resign because of a sexual scandal that shook the domestic political position of Theresa May. The current reshuffle should restore stability to the British government before the next round of Brexit talks.

Support and resistance

Technically, the price dropped below the 1.3550 mark (Murrey [7/8]) and may continue to decline to the level of 1.3427 (Murrey [6/8], the middle line of the Bollinger Bands) and 1.3305 (Murrey [5/8]). Technical indicators generally allow the possibility of a downward correction. Stochastic is pointing downwards. MACD histogram and price chart demonstrate slight diversion. One may speak about resuming growth after the price consolidates below the level of 1.3600. In this case, the growth can be continued to the levels of 1.3670 (Murrey [8/8]) and 1.3795 (Murrey [+1/8]).
Support levels: 1.3427, 1.3305, 1.3215.
Resistance levels: 1.3550, 1.3600, 1.3670, 1.3795.

Trading tips

Short positions may be opened from the level of 1.3510 with targets at 1.3427, 1.3305 and stop-loss at 1.3560. If the price consolidates above 1.3600, long positions could be opened with targets at 1.3670, 1.3795 and stop-loss at 1.3570.

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

 

[Mikhail Kurakin]

LiteForex: WTI Crude Oil: Murray analysis

On the 4-hour chart, the price has grown to the area of the upper border of the Murray trading range 62.50 ([8/8]), but has not tested it and was corrected to 61.72 ([7/8]). The consolidation of the price below this the level and the middle line of Bollinger Bands can lead to the development of the downward correction to the levels of 60.94 ([6/8]) and 60.15 ([5/8]). Stochastic confirms it, reversing downwards near the overbought area. On the other hand, as MACD in the positive zone and Bollinger Bands and MA are growing, the upward trend, within the correction can develop, maintains. The price can grow to the levels of 63.28 ([+1/8]) and 64.00 ([+2/8]) after the consolidation above the level of 62.50.

Support and resistance

Resistance levels: 62.50 ([8/8]), 63.28 ([+1/8]), 64.00 ([+2/8]).
Support levels: 61.72 ([7/8]), 60.94 (6/8]), 60.15 ([5/8]), 59.37 ([4/8]).

Trading tips

Short positions can be opened after the price is set below the level of 61.72 and the middle line of Bollinger Bands with the targets at 60.94, 60.15 and stop loss at around 61.85.
Long positions can be opened after the price is set above the level of 62.50 with the targets at 63.28, 64.00 and stop loss at around 62.10.

 

[Mikhail Kurakin]

LiteForex: AUD/USD: Fibonacci analysis

On the 4-hour chart, the price is around highs since last October around 0.7870. The consolidation above it can let the price grow further. Otherwise, the correction to the level 0.7785 (correction 23.6%, upward fan line 38.2%) is possible. Indicators’ readings are controversial, Stochastic is pointed upwards, MACD entered the negative zone, which can reflect the formation of the downward trend.
On the daily chart, the price is around the level of 0.7845 (correction 61.8%), which seems to be key. The consolidation of the price above it can let it grow to the area of 0.7925–0.7965 (correction 76.4%, upcoming downward fan). Otherwise, the fall to the levels of 0.7780 (correction 50.0%) and 0.7715 (correction 38.2%) is possible. Technical indicators allow the downward correction, Stochastic has left the overbought area and has formed a sell signal, MACD histogram has begun to fall in the positive zone.

Main scenario

Short positions can be opened at the level of 0.7830 with the targets at 0.7780, 0.7715 and stop loss at 0.7860.

Alternative scenario

Long positions can be opened after the price is set above the level of 0.7870 with the targets at 0.7925, 0.7965 and stop loss around 0.7840.

 

[Mikhail Kurakin]

LiteForex: AUD/USD: waiting for the US inflation data

Current trend

At the beginning of the week, the pair declined under the pressure of optimistic statements by FOMC members John Williams and Loretta Meister, who spoke in favor of three or four interest rate increases in the US this year.
However, on Wednesday the price reversed around the 0.7800 mark and began to rise under the influence of later reports that China plans to stop purchasing US Treasury bonds and strong data on retail sales in Australia. In November, the indicator showed significant growth, amounting to 1.2% instead of the expected 0.4%, which indicates active sales on "Black Friday". As a result, the price has risen to the level of 0.7900, has been corrected a little, and now is in the area of the level of 0.7870.
Today, the market is waiting for the publication of December data on the consumer price index, one of the defining indicators in the decision to change the US interest rate. Now, a number of Fed members, including Charles Evans, the president of the Federal Reserve Bank of Chicago, are concerned about the low level of inflation and are supporting the rate hike before mid-2018.
If realized, the forecasts (the reduction of the consumer price index from 2.2% to 2.1% and the preservation of the base level of consumer prices at around 1.7%) can strengthen the positions of the "pigeons" at the January meeting of the American regulator and exert significant pressure on the US currency.

Support and resistance

Technically, the price is at the lower border of the rising channel and in case of breakdown it may drop to the area of 0.7812 (Murrey [0/8]), otherwise, growth is likely to reach levels of 0.7900 (Murrey [6/8]) and 0.7935 (Murrey [8/8]). Technical indicators allow the possibility of decline, Stochastic is turned down, the MACD histogram is preparing to go into the negative zone and to form sale signal.

Support levels: 0.7850, 0.7812, 0.7780.
Resistance levels: 0.7900, 0.7935, 0.7965.

Trading tips

Short positions may be opened from the level of 0.7880 with targets at 0.7900, 0.7935 and stop-loss at 0.7860. Consolidation below the lower border of the channel near the 0.7855 mark will make short positions relevant, with the goal of 0.7812 and the stop-loss at the level of 0.7875.

 

[Mikhail Kurakin]

LiteForex: EUR/USD: Euro is growing

Current trend

Last week European currency strengthened against the dollar and by now, it has reached the level of 1.2245.
Three factors have supported the growth of EUR. Firstly, China has reported the suspension of US government bonds purchase, which was not confirmed afterward. The second factor was the recent ECB meeting reports release, which contained hints of monetary tightening. The third one is the agreement between CDU and SPD to begin the negotiations upon the creation of wide party coalition, which will help to solve German government crisis.

As a result, the market did almost not reacted to the positive December US Consumer Price release. The MoM index grew from 0.1% to 0.3%, the YoY one– from 1.7% to 1.8% due to the growth of housing prices. The data give the investors hope if increasing the interest rate during March FRS meeting, despite the fact that inflation has not reached the inflation level of 2.0% yet. Meanwhile, FRS plans to abandon this target level at all. The head of Boston FRB Rosengren has proposed to determine the inflation target within the range of 1.5–3% and choose the optimal level annually.

Support and resistance

The price grew above the central Murray ([4/8]) level around 1.2200. The targets are 1.2330 (Murray [5/8]) and 1.2450 (Murray [6/8]). Correction to the levels of 1.2085 (Murray [3/8]) and 1.1963 (Murray [2/8], the middle line of Bollinger Bands) will become possible after the price is set below 1.2200. The indicators reflect the development of growth, MACD is increasing in the positive zone, and Stochastic is pointed upwards.
Resistance levels: 1.2330, 1.2450, 1.2570.
Support levels: 1.2200, 1.2085, 1.1963.

Trading tips

Long positions can be opened at the current level with the targets at 1.2330, 1.2450 and stop loss at 1.2240.
Short positions can be opened after the price is set below the level of 1.2200 with the targets at 1.2085, 1.1963 and stop loss at 1.2250.

 

[Mikhail Kurakin]

LiteForex: NZD/USD: pair updates its highs

Current trend

At the Monday trading, the New Zealand dollar showed significant growth against the US one, updating a new local maximum since September 22. The instrument was supported by the weakness of the US currency, while the markets in the US were closed on the occasion of the national holiday.
Today, the pair tends to consolidate near new highs, partly due to corrective growth in favor of the US currency, as well as published macroeconomic statistics from New Zealand. Thus, the index of business confidence from NZIER in the 4th quarter of 2017 showed a sharp decline of -12% QoQ, after an increase of 5% QoQ for the previous period. Retail sales using electronic cards slipped from 1.3% MoM to 0.5% MoM in December, which, however, justified the market expectations.

Support and resistance

The Bollinger Bands in D1 chart show stable growth. The price range remains practically unchanged, which still limits the "bullish" potential in the short term. One should take into account the risks of a corrective decline in the short term.
MACD indicator is growing preserving a stable buy signal (the histogram is above the signal line). There is an opportunity to maintain the existing long positions in the short term. It's worthwhile to postpone opening new positions now.
The stochastic reversed horizontally near its maximum values, which indicates the possible development of corrective rollback in the short and/or ultra short term.
Resistance levels: 0.7313, 0.7342, 0.7370.
Support levels: 0.7275, 0.7242, 0.7195, 0.7135.

Trading tips

To open long positions, one can rely on the breakout of 0.7313 or 0.7342 marks, provided that technical indicators do not contradict the further development of the "bullish" trend. Take-profit at 0.7370 or 0.7400. Stop-loss – 0.7270. Implementation time: 2-3 days.
The rebound from the level of 0.7313 as from resistance, with the subsequent breakdown of 0.7275-0.7250 marks, can become a signal to the beginning of correctional sales with the target of 0.7135-0.7100. Stop-loss – 0.7320. Implementation time: 2-3 days.

 

[Mikhail Kurakin]

LiteForex: USD/JPY: upward correction may occur

Current trend

This week, the pair continues to decline and today has reached its lowest level since last September at around 110.17.
The yen is still supported by the decision of the Bank of Japan to reduce the volume of purchases of long-term government bonds (from 200 to 190 billion yen for 10-25-year-olds, and from 100 to 90 billion yen for 25-40-year-olds). Investors see this as a signal for the beginning of tightening of monetary policy by the regulator. Statements by the head of the Bank of Japan Haruhiko Kuroda that incentive programs will be preserved until the inflation reaches the target of 2.0%, made this week, did not greatly weaken the yen. Most market participants believe that during the year the Japanese regulator will have to go on limiting incentives to prevent excessive loosening of the national currency due to the expected continuation of the Fed's interest rate increase and the possible tightening of the monetary policy by the ECB.
Currently, the decline has stopped, as the market is waiting for the publication of data on industrial production in the US. Realization of forecasts - in December the index is expected to grow from 0.2% to 0.4% - may push the pair to correction.

Support and resistance

Currently, the price is in the area of 111.50 (Fibo correction 23.6%, Murrey [1/8]), the breakdown of which will open the prospect of further decline to the levels of 109.37 (Murrey [0/8]) and 108.60 (Murrey [-1/8]). However, the location of Stochastic in the oversold zone indicates a possible correction to the level of 111.72 (Murrey [3/8]) and 112.50 (Murrey [4/8], the middle Bollinger band line).
Support levels: 110.15, 109.37, 108.60.
Resistance levels: 110.93, 111.72, 112.50.

Trading tips

In the current situation, one can buy above the level of 110.93 with the target at 111.72 and the stop-loss at 110.50. One can sell below the level of 110.15 with the targets at 109.37, 108.60 and stop-loss at 110.60.

 

[Mikhail Kurakin]

LiteForex: EUR/USD: waiting for new drivers

Current trend

This week, the pair is trading near the 1.2200 mark and cannot get away from it yet.
On Wednesday, the dollar made an attempt to strengthen in view of strong data on industrial production in the US (in December its volume rose by 0.9% significantly exceeding forecasts) and warnings of the ECB Vice-President Vítor Constâncio on the need for a cautious approach to monetary policy in order not to harm economic growth. However, these drivers were not enough for consolidation of the instrument significantly below the level of 1.2200.
Currently, the EUR won back losses, taking advantage of the uncertainty associated with the expiration of the financing of the US government on January 19. The Congress will have to extend funding, but Democrats insist on reciprocal easing of legislation on illegal migrants.
During the day, the weakening of the US currency may continue in case of negative data on the US construction sector. Indicators of the dynamics of construction permits and the number of new homes bookings in December could fall from 1.298 million to 1.290 million and from 1.297 million to 1.275 million, respectively.

Support and resistance

The technical picture is uncertain. The price chart forms a "flag" shape within the upward trend, Bollinger Bands are directed upwards, which can speak of an increase to the levels of 1.2450 (Murrey [6/8]) and 1.2573 (Murrey [7/8]). On the other hand, Stochastic is preparing to leave the overbought zone and to form a signal for sale. Correction is possible to the levels of 1.2085 (Murrey [3/8]) and 1.1962 (Murrey [2/8]).
Support levels: 1.2200, 1.2085, 1.1962.
Resistance levels: 1.2330, 1.2451, 1.2573.

Trading tips

In the current situation, one may*sell after the price consolidates below the level of 1.2200 from the level of 1.2160 with targets at 1.2085, 1.1962 and stop-loss at 1.2200. Buy positions may be opened from 1.2330 mark with targets at 1.2451, 1.2573 and stop-loss at 1.2270.

 

[Mikhail Kurakin]

LiteForex: GBP/USD: the growth slowed

Current trend

This week the pair was growing, and by the end of the week it has renewed the 3-year highs around 1.3943, gained 1.6%.
Today the growth slowed, as the instrument is under influence of two opposing factors. On the one hand, the dollar is under pressure of the crisis upon the federal government funding, which expires on December 19. The House of Representatives approved the prolongation law on Thursday, however, the democratic part of the Senate promises to block it. In this case, a number of government structures will suspend its work, and around 800K of the employers will have to set a vacation.
On the other hand, the pound cannot grow further due to poor UK Retail Sales release. In December, the index decreased by 1.5% and Retail Sales ex-Fuel – by 1.6%. The analysts consider the fall is because the peak of buyers’ activity coincided with the November sales season. In addition, high inflation level affects the Retail Sales negatively, as it has fallen from its high of 3.1% to 3.0% only in December. The member of Monetary Policy Committee of the Bank of England Michael Saunders has mentioned the long-term negative influence of the high inflation to the UK economy.

Support and resistance

The price reached the resistance zone of 1.3915–1.3965 (Murray [6/8], Fibonacci correction 38.2%). After the rebound the growth to the levels of 1.4040 (Murray [7/8]) and 1.4160 (Murray [8/8]) is possible. However, the reversal of Stochastic in the overbought area and the possible exit of it reflects the risk of the downward correction to the levels of 1.3672 (Murray [4/8]) and 1.3550 (Murray [3/8], the middle line of Bollinger Bands).
Resistance levels: 1.3965, 1.4038, 1.4160.
Support levels: 1.3794, 1.3672, 1.3550.

Trading tips

Short positions can be opened at the level of 1.3793 with the targets at 1.3672, 1.3550 and stop loss at 1.3830.
Long positions can be opened after the price is set above the level of 1.3965 with the targets at 1.4038, 1.4160 and stop loss at 1.3940.

 

[Mikhail Kurakin]

LiteForex: AUD/USD: Murray analysis

On the daily chart, the price left the main trading Murray range and is tending to the extreme of 0.8056 ([+2/8]). The breakout here can lead to the growth to the level of 0.8178 ([7/8] W1). However, the level of 0.8056 seems to be quite strong to cause a reversal. The price has tested it unsuccessfully last September, on the weekly chart in this area lays the strong reversal level [6/8] and the upper border of Bollinger Bands. After the reversal, the fall can develop to the levels of 0.7934 ([+1/8] D1) and 0.7812 ([8/8] D1). On the daily chart technical indicators’ readings are mixed. Stochastic has left the overbought area and formed a sell signal. MACD histogram is growing in the positive zone, Bollinger Bands are pointed upwards. Generally, the growth potential maintains but seems restricted.

Support and resistance

Support levels: 0.7934 ([+1/8]), 0.7812 ([8/8]), 0.7690 ([7/8]).
Resistance levels: 0.8056 ([+2/8]), 0.8178 ([7/8] W1).

Trading tips

Short positions can be opened after the reversal around of the level 0.8656 with the targets at 0.7934, 0.7812 and stop loss at around 0.8685.
Long positions can be opened after the price is set above the level of 0.8056 at the level of 0.8090 with the target at 0.8178 and stop loss at 0.8050.

 

[Mikhail Kurakin]

LiteForex: XAG/USD: correction is over, growth is expected

Current trend

The price of silver went into a narrowing consolidation after a significant growth at the end of last year.
In mid-January, the instrument reached the local maximum level of 17.40, after which it consolidated below this mark in the side channel. Growth was promoted by the increased demand for metal and a significant drop in the US currency at the end of last year/beginning of this year. At the end of the last trading week, the United States published mixed data, which resulted in a reduction in US dollar sales and stabilization of the rate.
Now, there are no important releases that could increase the volatility of the price of silver in the economic calendar. In the second half of the week, special attention should be paid to the US data, namely reports on the labor market, on economic growth rates in the 4th quarter of last year, and on orders for durable goods.

Support and resistance

The current consolidation from the strong resistance level can be regarded as a correction after significant growth. In the future, the correction will be replaced by a new upward wave, the main catalyst for further growth will be the negative fundamental background for the United States and the "bullish" trading sentiments of investors. In the medium term, the instrument is expected to rise to the next strong resistance level of 18.00 — the local high of last September.
Technical indicators on the D1 chart keep the signal for an increase: MACD indicator shows a high volume of long positions, and Bollinger Bands are directed upwards.
Support levels: 16.85, 16.75, 16.55, 16.10, 15.60, 15.30, 15.00, 14.10.
Resistance levels: 17.10, 17.25, 17.40, 18.00, 18.20, 18.70.

Trading tips

In this situation, long positions may be opened from the current level with the target at 18.00 and stop-loss at 16.60.

 

[Mikhail Kurakin]

LiteForex: Brent Crude Oil: correction may be short-lived

Current trend

Oil prices started with correction and are currently trading around 69.15 (Murrey [5/8]).
Prices are pressured by growing reserves in the US (by 4.755 million barrels according to the API) after a long reduction. This is associated with the technical maintenance at American refineries. If the EIA weekly report on oil stocks will record a decline in reserves, expected to be 1.6 million barrels, the price may growth.
The market is upward since June and has not been seriously corrected, despite the presence of serious negative factors. The rise in prices inevitably leads to the activation of shale oil production in the US, and the increase in its supply to the market leads to a slowdown in the achievement of balance and in the effect of the OPEC+ agreement. The danger of the prices exceeding USD 60 mark was indicated by Iran's oil minister Bijan Zangeneh, and Saudi Energy Minister Khalid Al-Falih noted that achieving the balance is not possible until 2019. However, this doesn't scare "bulls".

Support and resistance

In the breakdown of 69.15 mark the decline may continue to the levels of 68.75 (the middle line of Bollinger Bands, Murrey [4/8]) and 68.35 (Murrey [3/8]). Breakout of 69.53 mark gives the prospect of growth to the levels of 69.92 (Murrey [7/8]) and 70.31 (Murrey [8/8]). Technical indicators don't provide a clear signal. Bollinger Bands' reverse and MACD histogram in the positive area indicate the potential price growth. Stochastic's reverse indicates the possibility of correction.
Support levels: 68.75, 68.35, 67.96.
Resistance levels: 69.53, 69.92, 70.31.

Trading tips

Long positions may be opened above the 69.53 with targets at 69.92, 70.31 and stop-loss at 69.20. Short positions may be opened below 69.15 with targets at 68.75, 68.35 and stop-loss at 69.40.

 

[Mikhail Kurakin]

LiteForex: USD/JPY: Murray analysis

On the daily chart the price weakened below the level of 109.37 ([0/8]) and can fall further to the levels of 108.60 ([–1/8]) and 107.80 ([–2/8]), which is confirmed by the indicators’ readings: MACD histogram is growing in the negative zone, Bollinger Bands has reversed downwards, confirming the downward trend. The beginning of the upward correction is possible after the price is set above the level of 109.37 ([0/8]) and returns into the borders of the main trading Murray range with the targets at the level of 110.15 ([1/8]) and 110.93 ([2/8]).
However, on the weekly chart, the price has formed wide sideways channel, approximately coinciding with the central Murray channel (115.62 –109.37) and the price is now testing its lower border, which can cause a reversal. Moreover, the chart is close to the cycle line, which can reflect the possibility of the trade changing, too. In general, there is a potential of decrease, which seems to be restricted.

Support and resistance

Support levels: 108.60 ([–1/8]), 107.80 ([–2/8]), 106.25 ([2/8] W1).
Resistance levels: 109.37 ([0/8]), 110.93 ([1/8]), 111.72 ([2/8]).

Trading tips

Short positions can be opened at the current level with the targets at 108.60, 107.80 and stop loss at around 109.40.
Long positions can be opened after the price is set above the level of 109.37 with the targets at 110.15, 110.93 and stop loss at around 109.00.

 

[Mikhail Kurakin]

LiteForex:GBP/USD: consolidation phase

Current trend

The pair GBP/USD switched to the stage of lateral consolidation after a substantial growth in mid-January. The upward momentum reached the key resistance level of 1.4345 (the upper limit of the upward channel). Then growth was replaced by a fall and the pair entered the sideways channel.
At the beginning of the trading week, there are no key releases in United States or UK, which will ensure the further formation of a lateral trend. In the second half of the trading week in the US there will be data on the labor market, the index of production prices and the decision of the Fed on rates. The UK will respond with data on mortgage lending and the consumer confidence index.

Support and resistance

At the peak of the price, investors prefer to open short positions and close long positions, which ensures a fall in the pair. In the future, a deeper correction movement downward with targets of 1.4000, 1.3820 is expected. The oversold dollar will gradually begin to gain investor demand, even despite weak fundamental indicators. A downward correction may turn into a trend, but for a reversal of a long-term uptrend the pair needs to fall below the 1.3650 level, which is unlikely in the current situation. The main forecast is the downward correction to the levels of 1.4000, 1.3900, 1.3820, the reverse and the formation of a new upward wave.
Support levels: 1.4070, 1.4000, 1.3900, 1.3820, 1.3690, 1.3650, 1.3520, 1.3500.
Resistance levels: 1.4175, 1.4280, 1.4345, 1.4570.

Trading tips

Pending short positions can be opened at the level of 1.4280 with targets of 1.4000, 1.3820 and stop loss at 1.4370.