Forex Analysis by LiteForex

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AUD/USD: Australia Dollar managed to strengthen

Current trend

On Thursday, the AUD/USD pair hit its new highs of the week. However, it should be noted that the pair strengthened in the second half of the day, while during the Asian session, the Australian currency was under pressure from weak macroeconomic statistics for October.
Australia's exports fell by 3% after a 3% growth in September. Imports were down to 0% from previous 2%. As a result, trade balance deficit surged from 2403 to 3305 billion.
Later on, the pair managed to strengthen amid the Fed Chair Janet Yellen speech. She confirmed the possibility of an interest rate hike at the upcoming meeting, but the Regulator will have to consider the real economic indicators.

Support and resistance

Bollinger Bands indicator on the daily chart is growing moderately, while the price range is narrowing down at the bottom. MACD is keeping its upward dynamics, though growth of the histogram is slowing down. Stochastic is in the overbought zone and trying to turn down.
According to the indicators, a downward correction might form in the short term.
Support levels: 0.7330, 0.7275, 0.7234, 0.7200, 0.7183, 0.7158 (23 November low).
Resistance levels: 0.7363 (3 December high), 0.7381 (12 December high), 0.7400 (mid-August level).

Trading tips

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EUR/USD: NFPR had little effect

Current trendSupport and resistance

For the downward trend to resume the price should consolidate below the support levels at 1.0820 (ЕМА200 on the 4-hour chart, May and July lows), 1.0760 (ЕМА144 on the 4-hour chart).
At the same time, a consolidation above the level of 1.0890 (ЕМА50 on the daily chart) could allow an upward correction towards the level of 1.1050 (ЕМА144, upper border of a descending channel on the daily chart) to continue.
On the daily and weekly charts, OsMA and Stochastic suggest a growth continuation, while on the 4-hour chart the indicators are turning to sales.
Support levels: 1.0820, 1.0760, 1.0700, 1.0600, 1.0560, 1.0500.
Resistance levels: 1.0940, 1.1050, 1.1180, 1.1285.

Trading tips

Pending sell orders can be placed from the level of 1.0845 with targets at 1.0820, 1.0760, 1.0710 and stop-loss at 1.0890.
Pending buy orders can be placed from the level of 1.0910 with targets at 1.0940, 1.1050, 1.1090 and stop-loss at 1.0880.

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GBP/USD: general review

Current trendSupport and resistance

The nearest support level is at 1.5000 (30 November lows).
The nearest resistance level is at*1.5080 (moving average with 50 period).

Trading tips

Short positions can be opened from current prices with the target at 1.5000*and stop-loss at 1.5080.

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XAU/USD: pair in correction

Current trendSupport and resistance

After reaching the key support level at 1070.00 (EMA144 on the monthly chart), the pair remains in correction that could continue to the levels of 1085.00 (EMA144), 1092.00 (EMA200 on the 4-hour chart), a breakout of which would send the pair to 1100.00 (EMA50 on the daily chart) and 1118.00 (23.6% Fibonacci correction).
On the daily chart, OsMA and Stochastic recommend long positions. On the 4-hour chart, Stochastic is also turning to purchases.
Support levels: 1070.00, 1060.00, 1053.00, 1050.00, 1045.00.
Resistance levels: 1085.00, 1092.00, 1105.00, 1110.00, 1118.00.

Trading tips

Pending sell orders can be placed from the level of 1085.00, 1092.00 with targets at 1070.00, 1060.00, 1050.00, 1010.00 and stop-loss at 1095.00, and from the level of 1060.00 with targets at 1050.00, 1010.00 and stop-loss at 1072.00.
Pending buy orders can be placed from the level of 1095.00 with targets at 1105.00, 1110.00, 1118.00 and stop-loss at 1090.00.

[LiteForexNews]

XAG/USD: in correction

Current trend

Yesterday on COMEX, the price of March futures on silver fell by 21.6 cents.
The pair remains under pressure amid expectations of an interest rate hike in the US in December this year and a further cycle of gradual monetary policy tightening in the US in the next year. In addition, the price of silver is pressured by falling commodities and oil prices.
Due to the absence of important macroeconomic publications today and prior to meetings of the Bank of England and the Swiss NB that are due tomorrow, the pair will continue moving along a sideways channel.

Support and resistance

On the daily chart, the XAG/USD pair is falling along a descending channel with the lower border below the level of 13.50.
An upward correction in the pair can continue up to the levels of 14.40 (ЕМА144), 14.50 (ЕМА200 on the 4-hour chart). At the same time, a breakdown of the level of 14.00 (year lows) will accelerate the fall and sends the price to 12.30, 13.00 (2009 lows).
On the daily and weekly charts, OsMA and Stochastic recommend short positions, while on the 4-hour chart they start turning to purchases indicating that the upward correction can continue.
Support levels: 14.00, 13.80, 13.50.
Resistance levels: 14.40, 14.50, 14.80, 15.30.

Trading tips

Pending sell orders can be placed at the level of 13.95 with targets at 13.50, 13.20 and stop-loss at 14.10.
Pending buy orders can be placed at the level of 14.30 with targets at 14.40, 14.50, 14.75 and stop-loss at 13.95.

[LiteForexNews]

USD/JPY: pair fell

Current trend

During the last two days the pair substantially fell.
The pair was pressured by strong data on Machinery Orders for October in Japan that grew by 0.7% and significantly exceeded forecasts. In addition, the Yen is supported be revised data on the GDP for the third quarter that showed a 1% growth, the Consumer Confidence Index for November that increased to 42.6 points and Labour Cash Earnings that grew by 0.7%. At the same time, demand for the Yen as the safe-haven currency could increase prior to meetings by the Bank of England and Swiss NB that are due tomorrow.
Strong macroeconomic data can push the Bank of Japan to postpone further monetary policy easing that will also support the Yen.

Support and resistance

The pair remains above the strong support levels at 122.60 (EMA144), 122.50 (38.2% Fibonacci correction), 122.35 (EMA200 on the 4-hour chart), a breakdown of which would send the price towards 122.15 (EMA50 on the daily chart). A farther fall is restricted by support levels at 121.50 (50% correction), 121.35 (ЕМА144), 120.60 (61.8% correction, EMA200).
On the 4-hour and daily charts OsMA and stochastic recommend sales.
Support levels: 122.60, 122.50, 122.35, 122.15, 121.50.
Resistance levels: 123.00, 123.50, 123.70, 124.00, 124.50.

Trading tips

Pending buy orders can be placed at the level of 123.10 with targets at 123.50, 123.70, 124.00, 124.50 and stop-loss at 122.80.
Pending sell orders can be placed at the level of 122.50 with targets at 122.35, 122.10, 121.80, 121.00, 120.70 and stop-loss at 122.80.

[LiteForexNews]

NZD/USD: general review

Current trend

The Reserve Bank of New Zealand decreased its key interest rate from 2.75% to 2.5% in line with expectations. However, the NZD grew against the USD and approached last week highs.
In its Rate Statement, the regulator stated that it expects stability in the near future with regards to the interest rates. The RBNZ is not going to dismiss completely an option of further policy easing if needs but it is unlikely to happen soon, which is a positive factor for the national currency.

Support and resistanceTrading tips

Short positions can be opened from the level of 0.6719 with the target at 0.6675 and stop-loss at 0.6747.
Long positions can be opened after the price consolidation above the level of 0.6747 with the target at 0.6787 and stop-loss at 0.6719.

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USD/JPY: review and forecast

Current trend

Though expectations of a hike at the upcoming Fed meeting are growing, the JPY has strengthened.
Futures traders are putting an 87.2% chance of a hike in US interest rates. At the same time, many investors suggest that a continuous growth in the USD has ended since a rate increase is obvious and already priced into the markets. In this situation, many market participants prefer taking profits on USD long positions.
The Japanese currency and the country's economy also gain support from low commodity prices.

Support and resistance

On the 4-hour chart, the price has formed a Pin-bar that suggests a possible correction after downward movement.
Support levels: 121.00, 120.50, 120.00.
Resistance levels: 122.00, 122.30, 123.00.

Trading tips

Short positions can be opened after the breakdown of the level of 121.00 with targets at 120.50, 120.00 and stop-loss at 121.20.
Long positions can be opened from the level of 122.00 with targets at 122.30, 123.00 and stop-loss at 121.70.

[LiteForexNews]

XAU/USD: general review
Current trend
Yesterday the pair was trading in the range 1076.43-1069.34 and closed at opening levels, but today managed to overcome the support level at 1072.23 and falling.
Today data on Retail Sales is due in the US. According to forecasts, the index will grow by 0.2%, which if confirmed will pressure the XAU/USD pair.
Support and resistanceTrading tips
Short positions can be opened from current prices with the target at 1055.87 and stop-loss at 1072.23.
Long positions can be opened after the price consolidation above the level of 1072.23 with the target at 1086.41 and stop-loss at 1067.00.

[LiteForexNews]

USD/JPY: review and forecast
Current trend
Having opened this trading day with a growth, the US Dollar started declining in the European session. However, later on, an upward dynamics resumed. The American currency is strengthening amid a fall in oil and precious metals prices.
Recently, BOJ Governor stated the Regulator might continue easing monetary policy to stimulate wage growth in Japan. The next BOJ meeting is due on 17-18 December, while the Fed announces its interest rate decision on 16 December.
Support and resistance
After a growth at the opening of the trading day, the USD/JPY pair has started declining towards the support level of 121.50 (Fibonacci 50.0%) during the European session.
However, when the correction ends and OsMA and Stochastic indicators on the daily chart turn up, the pair is likely to resume its growth within an upward channel on the daily chart.
Support levels: 121.50, 121.35.
Resistance levels: 122.00, 122.30, 122.50.
Trading tips
Long positions can be opened from the level of 122.10 with targets at 122.50, 123.00, 123.50, 123.70, 124.00, 124.50 and stop-loss at 121.80.
Short positions can be opened from the level of 121.25 with targets at 121.00, 120.70 and stop-loss at 121.55.

[LiteForexNews]

EUR/USD: general analysis
Current trend
The Fed holds its finial meeting of the year on Wednesday. Many market participants expect a hike in US interest rates, so if the forecast is confirmed, the European currency is likely to weaken.
However, as long as inflation has not reached the target level of 2% yet, it might be seen as a determining factor for a forthcoming decision. Another negative aspect is Manufacturing PMI which came in below the key level of 50 points. This data might indicate a slowdown in economic growth.
Thus, in its decision making, the Fed will consider labor market statistics, inflation rate and the world economic situation.
Supportandresistance
Since the opening of the trading day, the European currency has been slightly declining against the US Dollar.
The key resistance level is still at 1.1040 the breakout of which would allow the price to continue growing towards 1.1150-1.1200.
Support level: 1.0925.
The nearest resistance level: 1.1055.
Trading tips
Short positions can be opened after the breakdown of the level of 1.0925 with the target at 1.0875 and stop-loss at 1.0950.

[LiteForexNews]

AUD/JPY: pair resumed its decline
Current trend
The AUD/JPY pair has declined from its local lows, reached in the first week of December. The Japanese currency has gained support form speculations over the upcoming Fed meeting. Though a hike in US interest rates is forecasted, investors suggest market reaction might be different than expected. It is possible that monetary policy tightening has already been priced into the market.
Last week, the Australian currency was growing only on Thursday amid the publication of unexpectedly favorable labor market statistics for November. Employment Change came in at 74.1K while a decline in the indicator by 10.0K had been forecasted. Unemployment Rate was down to 5.8% from 5.9% against expectations of an increase to 6.0%.
Support and resistance
Bollinger Bands indicator on the daily chart is turning down, while the price range is widening. However, the indicator has formed a signal for an upward correction. MACD keeps its downward trend. Stochastic is near the border of the oversold zone and trying to turn up.
It is recommended to wait for clearer trading signals.
Support levels: 87.00, 86.45 (10 November low), 86.00, 85.69, 85.00.
Resistance levels: 87.30, 88.00, 88.60, 89.12 (10 December high), 89.59, 90.00, 90.34, 90.71 (4 December high), 91.00.
Trading tips

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AUD/USD: general review
Current trend
Since the beginning of the week, the pair is growing.
Today the pair was supported by strong data from Australia. New Motor Vehicle Sales for November grew to 6%, while the House Price Index came out in line with forecasts at 2%. At the same time, the pair is pressured by expectations of the Fed Interest Rate Decision that is due tomorrow. Markets expect rates to be increased that would add to the pressure on the pair.
Today attention needs to be paid to the Consumer Price Index in the US. Volatility on the market is expected to be low.
Support and resistanceTrading tips

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USD/CAD: review and forecast
Current trendSupport and resistance
On the daily chart, a doji pattern has formed that suggests the possibility of a downward correction.
Support levels: 1.3675, 1.3623, 1.1355.
Resistance levels: 1.3780, 1.3823, 1.3900.
Trading tips
Long positions can be opened above the level of 1.3785 with targets at 1.3825 and 1.3900.
Short positions can be opened below the level of 1.3675 with targets at 1.3630 and 1.3560.

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USD/JPY: pair returned to growth
*
Current trend
Yesterday the USD/JPY pair significantly strengthened. Trading in the pair was very volatile due to a large number of macroeconomic publications that was coming out and approaching US Fed meeting at which, as expected, the regulator will increase its key interest rate.
The pair was supported by strong data on consumer inflation in the US. The Consumer Price Index for November grew from 0.2% to 0.5% that was better than economists forecasted. *
*
Support and resistance
Bollinger Bands on the daily chart is moving down while the price range is slowly narrowing. MACD is growing and giving a buy signal. Stochastic bounced off the oversold zone and growing.
The indicators recommend long positions.
Support levels: 121.48, 121.00, 120.56, 120.34 (14 December low), 120.00 (22 October low), 119.62, 119.39.
Resistance levels: 122.00 (local high), 122.22 (11 December high), 122.60, 122.93, 123.35, 123.66 (2 December high), 124.00.
*
Trading tips