LiteForex Analytics - page 95
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USD/CAD: general review
Current trend
Yesterday the pair substantially strengthened amid the publication of labour market data in the US. Initial Jobless Claims unexpectedly fell to 247 thousands while economists predicted a growth to 263 thousands. In addition, the number of Continuous Claims shrank by almost 40 thousands.
Today attention needs to be paid to data on the Consumer Price Index in Canada and Markit PMI’s in the US.
Support and resistance
On the 4-hour chart, the pair is trading in the upper Bollinger band while the price range narrowed, which indicates that the trend will likely change in the nearest future. MACD histogram is in the negative zone and its volumes are growing. Stochastic has left the overbought zone suggesting a fall continuation.
The indicators recommend short positions.
Support levels: 1.2691, 1.2644, 1.2619, 1.2591.
Resistance levels: 1.2752, 1.2764, 1.2794, 1.2855, 1.2889, 1.2944, 1.2993.
Trading tips
Long positions can be opened after the breakout of the level of 1.2764 with the target at 1.2855 and stop-loss at 1.2691. Validity – 1-2 days.
Short positions can be opened from the level of 1.2691 with the target at 1.2619 and stop-loss at 1.2752. Validity – 1-2 days.
GBP/USD: review and forecast
Current trend
On Monday the GBP/USD pair opened with a gap up at 1.4462 and then corrected down to the level of 1.4420.
Support and resistance
The price range of Bollinger Bands is widening. The pair broke out the upper MA but then returned into the range and may continue moving down towards the middle MA of the indicator.
Support levels: 1.4420, 1.4370, 1.4330, 1.4280.
Resistance levels: 1.4490, 1.4550.
Trading tips
Short positions can be opened at the current levels with targets at 1.4370, 1.4280 and stop-loss at 1.4490.
Pending buy orders can be placed above the level of 1.4490 with the target at 1.4550 and stop-loss at 1.4220.
EUR/JPY: fall resumed
Current trend
Yesterday the pair resumed its fall after some strengthening in the previous week.
The Euro was pressured by weak data from Germany where the IFO Business Climate in April fell from 106.7 to 106.6 points, while experts predicted a growth to 107.0 points. Furthermore, the IFO Expectations came out worse than forecasts as well amounting to 100.4 points.
At the same time, the Yen remains under pressure prior to the Bank of Japan Interest Rate Decision. According to expectations, the Japanese regulator could proceed with further monetary policy easing.
Support and resistance
Bollinger Bands on the daily chart is moving horizontally while the price range is widening. However, the price is trading above its upper border thus indicating the possibility of a downward correction. MACD is growing and giving a buy signal. Stochastic continues growing while in the overbought zone.
The indicators recommend waiting for clearer trading signals.
Support levels: 125.00 (local low), 124.22, 123.57 (21 April low), 123.06, 122.54, 122.07, 121.71 (18 April low).
Resistance levels: 125.53 (local high), 126.16, 126.62, 127.30, 128.21 (31 March high), 128.75.
Trading tips
Long positions can be opened after the breakout of the level of 125.53 with targets at 126.16, 126.62 and stop-loss at 124.70. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 125.00 with the target at 123.00 and stop-loss at 125.53. Validity – 2-3 days.
EUR/USD: general review
Current trend
The pair continues growing amid weakening in the US Dollar, which was slightly pressured by yesterday’s Fed Interest Rate Decision.
As was expected, the rate remained unchanged. The statement, however, did not contain any hints on its possible increase at the July meeting. At the same time, employment in the US keeps growing that will later accelerate wages and inflation growth. In addition, strengthening oil prices will increase inflationary pressures as well. Therefore, the possibility of the next interest rate hike in the nearest term is quite high.
Support and resistance
The pair continues trading in the ascending channel.
The nearest support level is at 1.1295.
The nearest resistance level is at 1.1342.
Trading tips
Long positions can be opened from the level of 1.1342 with the target at 1.1386 and stop-loss at 1.1325.
NZD/USD: general review
Current trend
The New Zealand Dollar was significantly supported by the RBNZ decision to keep its key interest rate unchanged at the current 2.25%, which allowed the pair to strengthen by more than 180 points. In addition, the pair was supported by today’s data on the ANZ Business Confidence. In March, the index grew from 3.2 to 6.2 points.
Today attention also needs to be paid to data on Personal Income and Personal Spending in the US. According to forecasts, indices will grow that might support the US Dollar.
Support and resistance
On the 4-hour chart, the pair is growing along the upper MA of Bollinger Bands. MACD histogram is in the positive zone and its volumes are growing. Stochastic is falling after it has left the overbought zone.
Support levels: 0.6960, 0.6930, 0.6915, 0.6885, 0.6850, 0.6820, 0.6800.
Resistance levels: 0.6980, 0.7000, 0.7040, 0.7070.
Trading tips
Long positions can be opened from the level of 0.7000 with targets at 0.7040, 0.7070 and stop-loss at 0.6980. Validity – 1-3 days.
Short positions can be opened from the level of 0.6960 with targets at 0.6915, 0.6885 and stop-loss at 0.6980. Validity – 1-3 days.