LiteForex Market Analytics

Brent Crude Oil: general review

Current trend
On Tuesday Brent quotes decreased to the level of 55.00. This happened after the statement by Saudi Arabia Minister of Energy Khalid A. Al-Falih that is was early to consider the possibility of extension of OPEC+ agreement. The disappointment of the market was not eliminated even by the weekly report of American Petroleum Institute according to which US oil reserves reduced yet again by 840K barrels. The quotes still remain at the level of 55.00. Today the head of OPEC Mohammed Barkindo tried to calm down the investors by saying that the cartel was optimistic about the situation and that the measures taken by it would lead to the recovery of the market. Another positive factor for the bulls was the statement by the UAE Minister of Energy Suhail Al Mazrouei who pointed out that he was satisfied with the fulfillment of the agreement on the reduction of oil production.
These statement led to the growth of the quotes to 55.40. Upward movement may continue if API data is confirmed by the Energy Information Administration of the US Department of Energy. New weekly reduction of oil reserves may push the quotes to April maximums to the level of 56.60.

Support and resistance
Technically the price is trading within a narrow downward channel. Breaking through its upper border and the middle line of Bollinger Bands at the level of 55.55 may lead to further growth to 56.15 and 56.65. Otherwise the downward movement may resume to the level of 54.10 (correction 38.2%).
Support levels: 55.10, 54.10, 53.35.
Resistance levels: 55.55, 56.15, 56.65.

Trading tips
In the current situation short positions may be opened below 55.10 with targets at 54.10 and stop-loss at 55.30. In case the level of 55.55 is broken out, long positions with targets at 56.15, 56.60 and stop-loss at 55.15 will be relevant.

 
WTI Crude Oil: technical analysis

WTI Crude Oil, D1
On D1 chart the instrument dropped down and corrected to the middle line of Bollinger Bands. MACD histogram is in positive zone with its volume at the minimum, the signal line is crossing the zero line and the body of the histogram from below, which is a signal to open long positions. Stochastic signal line is in the neutral zone and is directed downwards. If the signal line crosses the border between the neutral zone and the oversold zone will indicate possible reversal of the price.
WTI Crude Oil, H4
On H4 chart the instrument reached the lower border of Bollinger Bands and slowed down its fall. MACD histogram is in the negative zone, the signal line is crossing the zero line and the body of the histogram from above, which is a signal to open short positions. Stochastic is in neutral zone, moving along the border with the oversold zone and not giving any clear signal.

Key levels
Support levels: 51.00, 50.50, 50.00, 49.30, 48.00, 47.15.
Resistance levels: 51.70, 52.50, 53.00, 53.50, 54.10, 54.50, 55.00.

Trading tips
In view of technical indicators, opening short positions from the current price with targets at 50.50, 50.00 seems preferable. Stop-loss should be placed on the level of 51.80. The period of implementation is 1-3 days.
Buy positions may be opened at the level of 52.00 with targets at 52.50, 53.00 and stop-loss at 51.70. The period of implementation is 1-3 days.


 
WTI Crude Oil: technical analysis

WTI Crude Oil, D1
On D1 chart the instrument dropped down and corrected to the middle line of Bollinger Bands. MACD histogram is in positive zone with its volume at the minimum, the signal line is crossing the zero line and the body of the histogram from below, which is a signal to open long positions. Stochastic signal line is in the neutral zone and is directed downwards. If the signal line crosses the border between the neutral zone and the oversold zone will indicate possible reversal of the price.
WTI Crude Oil, H4
On H4 chart the instrument reached the lower border of Bollinger Bands and slowed down its fall. MACD histogram is in the negative zone, the signal line is crossing the zero line and the body of the histogram from above, which is a signal to open short positions. Stochastic is in neutral zone, moving along the border with the oversold zone and not giving any clear signal.

Key levels
Support levels: 51.00, 50.50, 50.00, 49.30, 48.00, 47.15.
Resistance levels: 51.70, 52.50, 53.00, 53.50, 54.10, 54.50, 55.00.

Trading tips
In view of technical indicators, opening short positions from the current price with targets at 50.50, 50.00 seems preferable. Stop-loss should be placed on the level of 51.80. The period of implementation is 1-3 days.
Buy positions may be opened at the level of 52.00 with targets at 52.50, 53.00 and stop-loss at 51.70. The period of implementation is 1-3 days.


 
GBP/USD: general review

Current trend
The growth of GBP/USD slowed down today in view of publication of retail sales data from the UK. The indicator appeared to be less than forecast and reduced by 1.8% in monthly terms. On YoY basis it increased oinly by 1.7% against the expected growth by 3.4%. However, after significant growth in the beginning of the week the pound remains quite confident against US dollar and keeps trying to consolidate above 1.2850. The key support level is 1.2700. After breaking through it the "bulls" are likely to take a break which may lead to a correction to the level of 1.2400 in the medium term.
Today traders should pay attention to news from the USA namely changes in Markit Manufacturing PMI as well as compound Markit PMI.

Support and resistance
On D1 chart the price corrected to the upper border of Bollinger Band and slowed growth. MACD histogram is in the positive area and keeps the signal for the opening of long positions.
Support levels: 1.2780, 1.2700, 1.2600, 1.2550, 1.2500.
Resistance levels: 1.2850, 1.2900.

Trading tips
Long positions may be opened from the current level with target at 1.2900 and stop-loss at 1.2760.
Short positions may be opened from the level of 1.2690 with target at 1.2600 and stop-loss at 1.2720.
The period of implementation is 1-3 days.

 
AUD/USD: general analysis

Current trend
Last week the pair was traded controversial. In the beginning of the week the AUD was lowering due to the RBA meeting minutes, which confirmed the “dovish” policy and kept the interest rate on the minimum level. On Thursday and Friday the USD was lowering after the publication of the negative employment market and building data.
Yesterday the USD continued to fall due to the negative secondary business activity data. Despite the fact that the AUD/USD trading day closed in the red zone the whole dynamics is positive. The pair strongly consolidated above the level of 0.7500.
Today is ANZAC Day in Australia, so the banks don’t work and there is no news and publications, so the traders should pay attention to the USA Consumer Confidence publication (expected to be negative) and the New Home Sales data (expected to be negative, too).
On Wednesday the Australian Consumer Price Index is worth traders’ attention (expected to be positive). If it meets the expectations and the corresponding RBA decisions follows, the AUD will strengthen in the nearest future.

Support and resistance
Support levels: 0.7490, 0.7440, 0.7380, 0.7310.
Resistance levels: 0.7615, 0.7570, 0.7680, 0.7750.

Trading scenario
Open long positions at the current price with the target at 0.7615, 0.7680, stop loss is at 0.7480.
Open short positions at the level of 0.7490 with the target at 0.7440, 0.7380, stop loss is at 0.7530.
Implementation period: 2-3 days.


 
GBP/USD: general analysis

Current trend
The consolidation of the pair after the rapid growth on last Tuesday reflects the investors’ uncertainty in the further dynamics, as they are waiting for clearer signals. Yesterday in the first half of the day US dollar was strengthening, but the pair managed to keep its positions. Tonight's growth attempts of USD were also followed by the strengthening of GBP/USD which indicates slim chanses of the pair's quick return to monthly or even 2-weeks minimums. On Friday the UK GDP key data (expected to be positive) and the YoY USA GDP data (expected to be negative) are worth traders’ attention.
Today there is no significant news from the UK, and the Durable Goods Orders ex Transportation data (expected to be negative) and the Pending Home Sales data (expected to be negative) are to be published today in the USA.
The consolidation of the pair until Friday is expected.

Support and resistance
Resistance levels: 1.3035, 1.3200.
Support levels: 1.2700, 1.2780, 1.2865.

Trading scenario
Open short positions at the current price with the targets at 1.2780, 1.2700, stop loss is at 1.2930.
Buy the pair at the level of 1.2930 with the target at 1.3035 and stop loss at 1.2890.


 
USD/JPY: general review

Current trend
In the beginning of the previous week the pair USD/JPY reversed from its 5-month minimum. The growth of yen stopped after the publication of Japanese trading balance (much worse than forecast) last Thursday. This week the growth of the pair continued despite the fall of USD. The pair continued to weaken after yesterday's decision of the Bank of Japan to keep the interest rate unchanged in the minimum level. The pair reached its 4-weeks minimum and broke through the resistance level of 111.20. A number of important macroeconomic releases were published in Japan tonight: consumer price index, labor market data, production output forecast, and the volume of retail sales. All indicators lost a number of positions but investors failed to show any evident reaction so far.
No important releases from Japan are to be expected until next week. From the USA the market is waiting for the GDP data with a negative outlook at 14:30 (GMT+2). PMI Chicago (also with a negative forecast) is due at 15:15 (GMT+2), and consimer sentiment index with a neutral outlook will be published at 16:00 (GMT+2). Statements by FOMC members Harket and Brainard are due at 19:15 (GMT+2) and 20:30 (GMT+2) respectively.
The most likely scenario for today is the continuation of the upward correction.

Support and resistance
Support levels: 110.20, 108.90, 107.40.
Resistance levels: 111.20, 112.20, 113.20, 114.00.

Trading tips
Long positions may be opened at the market price wuth targets at 112.20, 113.20 and stop-loss at 110.30.
Alternatively, sell positions may be opened from the level of 110.20 with target at 108.90 and stop-loss at 111.10.


 
NZD/USD: general review

Current trend

Last Friday a number of important releases came from New Zealand: trading balance and construction permits. Although March trading balance showed stable growth in March, it appeared to be less than forecast. The number of construction permits fell considerably in comparison with the previous period. All these factors had a negative impact on the dynamics of the pair that has been falling for the whole previous week and updated 11-months minimums after reaching the level of 0.6850. The pair weakened in view of US dollar's being under the influence of mixed factors that the investors perceive as "hawkish". This is especially important in view of the upcoming FOMC decision on the interest rate that is expected to be made on Wednesday, May 3 at 20:00 (GMT+2).

No important releases are expected from New Zealand today. From the USA, on the contrary, certain important data are due: a statement by the US Minister of Finance Stephen Mnuchin at 13:45 (GMT+2), information on personal income and expenditure with mixed forecasts (income decreases, and expenditure goes up which indicates slower economy rates) at 14:30 (GMT+2), and at 16:00 (GMT+2) — Manufacturing PMI and Inflation Build-Up Index (both with negative outlooks also indicating slower economy growth). In case the forecasts prove true, Wednesday decision on the interest rate will be under strong "dovish" influence. Today's speech by Stephen Mnuchin is to clarify many things. One may expect his rhetorics to determine the dynamics of the pair (and all other USD pairs) this week.
The main scenario for today will be further weakening of the pair.

Support and resistance

Support levels: 0.6800, 0.6710, 0.6600.
Resistance levels: 0.6865, 0.6910, 0.7000, 0.7075.

Trading tips

Short positions may be opened at the market price with targets at 0.6800, 0.6710 and stop-loss at 0.6910.
Alternatively, buy positions may be opened from 0.6865 with targets at 0.6910, 0.7000 and stop-loss at 0.6820.
The period of implementation is 1-2 days.

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


 
XAG/USD: technical analysis

XAG/USD, D1

On the daily chart, the instrument is trading on the lower line of Bollinger Bands, having formed 5 consecutive closes below the line. The price remains below its moving averages that are horizontal. The RSI is trying to leave the oversold zone. The Composite is turning up as well, having reached its critical oversold levels.

XAG/USD, H4

On the 4-hour chart, the instrument is correcting up from the lower line of Bollinger Bands. The price remains below its moving averages that are directed down. The RSI keeps testing from below the border of the oversold zone that coincide with its longer MA. The Composite keeps developing Bullish dynamics.

Key levels

Support levels: 16.79 (March lows), 16.38 (October 2015 highs), 16.15 (November 2016 lows).
Resistance levels: 17.08 (October 2016 lows), 17.19 (December 2016 highs), 17.67 (local highs).

Trading tips

The price is testing a strong support near 16.80. Indicators suggest a high chance of an upward correction.
Long positions can be opened from current prices with targets at 17.08, 17.19 and stop-loss at 16.80. Validity – 2-3 days.
Short positions can be opened from the level of 16.70 with the target at 16.38 and stop-loss at 16.80. Validity – 2-3 days.

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


 
Brent Crude Oil: general review

Current trend

Yesterday Brent consolidated in view of the publishing of the API report on weekly changes in the US oil reserves. The reserves of four main oil products in the USA decreased by over 4 million barrels which helped the trading instrument consolidate above 50.80. Along with this, oil market continues to experience pressure due to uncertainty about the extension of OPEC agreement on the limitation of oil production for the second half of 2017. Moreover, fuel production in the USA has reached a maximum level since August 2015 which puts additional pressure on oil. At the same time the UAE Minister of Oil stated it was reasonable to extend the agreement and pointed out that full solidarity of its members was needed to reach the goal.

A key event that may considerably impact the dynamics of the trading instruments is the OPEC summit that will take place on May 25 in Vienna. Today the US Department of Energy will publish its report on weekly changes of commercial oil and petrochemicals reserves. Specialists expect them to decrease for the fourth week in a row which will lead to the strenghtening of Brent Crude Oil. Also attention today should be paid to the decision of the US regulator on the interest rate.

Support and resistance

On the H4 chart the instrument is correcting in the lower part of Bollinger Bands. The indicator is directed downwards while the price range has widened which is a ground for the continuation of the current trend. MACD histogram is in the negative zone maintaining the sell signal. Stochastic has turned upwards at the border of the oversold zone. Indicators don't give a clear signal for entering the market, therefore it would be wise to use sell and buy stop orders.

Support levels: 50.80, 50.64, 50.49, 50.32, 50.19.
Resistance levels: 51.10, 51.25, 51.37, 51.60, 51.83.

Trading tips

Short positions may be opened from the level of 50.75 with targets at 50.30, 50.10 and stop-loss at 51.05. The period of implementation is 1-2 days.
Long positions may be opened from the level of 51.10 with targets at 51.60 and stop-loss at 50.90. The period of implementation is 1-2 days.
Read more analytic on LiteForex site https://www.liteforex.com/trading/forex-analysis/

 
USD/CAD: general review

Current trend

Canadian dollar has been falling against USD for two weeks which causes active growth of USD/CAD.

This week the pair broke through a strong resistance level of 1.3700 around which it stayed last February. The fall of the Canadian currency happened in the absence of growth of US dollar that remains in the narrow flat for the second week and in view of a small number of important releases from Canada. The most likely fundamental reasons for this dynamics may be falling oil prices that Canadian dollar has always been sensitive for. Another strong factor is the growth of return on American bonds. Recently this factor has been one of the main reasons for the decrease of all reserve currencies against USD.

The most important news of today will be the data on Canadian trade balance at 14:30 (GMT+2). A small reduction of balance deficiency from CAD 0.97 to 0.80 trln is expected which is a positive factor. At the same time the forecast for the US trading balance states the deficiency in the amount of $900 mln. The data on the volume of industrial orders from the USA will be published at 16:00 (GMT+2). The indicator is expected to drop to 0.4% which will have a negative impact on USD. A statement by the head of the Bank of Canada Stephen Poloz is scheduled for 22:25 (GMT+2).
A likely scenario for today is the continuation of the pair's strengthening.

Support and resistance

Technically the price is returning to the upward movement zone in which it has remained since last May. The support line of this trend being also the lower border of channel D1 (blue) has confirmed its strength several times. The upper zone of this range around the levels of 1.4030-1.4160 may be the target of the pair.
Support levels: 1.3700, 1.3600, 1.3535, 1.3450.
Resistance levels: 1.3840, 1.4030, 1.4160.

Trading tips

Long positions may be opened at the market price with targets at 1.3840, 1.4030 and stop-loss at 1.3640.
Sell positions may be opened from the level of 1.3700 with targets at 1.3600, 1.3535 and stop-loss at 1.3800.

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


 
USD/CHF: technical analysis

USD/CHF, D1

On the daily chart, the pair is correcting up from the lower line of Bollinger Bands. The price remains below its moving averages that start turning down. The RSI is trying to turn up just above the border of the oversold zone. The Composite starts forming a divergence with the price, suggesting a growth possibility.

USD/CHF, H4

On the 4-hour chart, the pair is correcting up from the lower line of Bollinger Bands. The price remains below its moving averages that are directed down. The RSI turned up having bounced off the border of the oversold zone. The Composite is turning up as well, showing a divergence with the price.

Key levels

Support levels: 0.9830 (March lows), 0.9780 (December 2015 lows), 0.9710 (February 2010 lows).
Resistance levels: 0.9950 (May 2016 highs), 1.0001 (local highs), 1.0044 (local highs).

Trading tips

The pair is approaching its strong support level near 0.9830. There is a chance of an upward rebound.
Long positions can be opened from current prices with targets at 0.9950, 1.0001, 1.0044 and stop-loss at 0.9830. Validity – 3-5 days.
Short positions can be opened from the level of 0.9830 with targets at 0.9780, 0.9710 and stop-loss at 0.9860. Validity – 3-5 days.

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


 
AUD/USD: general analysis

Current trend

From the beginning of the month the AUD is actively lowering against the USD due to the quite poor macroeconomic data from the Australia, such as the lowering of the April trade balance surplus and the RBA decision to keep the interest rate on the same minimum level.

Last week the new home sales in Australia lowered to this year minima, also the copper and gold prices lowered significantly, as Australia keeps the leading positions on export of these materials. As a result the price reached the 4 month minimum, and only the support zone at the level of 0.7350-0.7400 was strong enough to reverse the pair into the corrections due to the quite controversial traders’ reaction to the positive USA employment market data on Friday. The USD was trading in the narrow flat for the two weeks, but after the publications of these important data, which were better than expected, ended the last week with a significant lowering. The investors’ reaction will probably appear this week.

Today the traders should pay their attention to the 3 and 6 Month Bill Auctions data. Tomorrow the Australia Retail Sales data are worth traders’ attention: the growth of the index to the level of 0.3% is expected.
The development of the correction due to the absence of the important news is expected today.

Support and resistance

Support levels: 0.7380, 0.7310, 0.7200.
Resistance levels: 0.7570, 0.7530, 0.7490, 0.7440.

Trading scenario

Open long positions at the current price with the target at 0.7440, 0.7490 and stop loss at 0.7360.
Open short positions at the level of 0.7380 with the target at 0.7310, 0.7200 and stop loss 0.7470.
Implementation period: 1-2 days.

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


 
USD/JPY: general review

Current trend
The Japanese yen, together with all commodity currencies, is falling against the US dollar. The pair USD/JPY last week renewed a five-week maximum. The report of the Bank of Japan last Tuesday confirmed the soft monetary policy, weakening the yen, and the positive labor market data from America supported the dollar. As a result, the pair is testing the critical resistance level of 113.30, which coincides with the 50% Fibonacci level of the semi-annual fall of the pair.

Today, there are no data from Japan. In the United States at 16:00 (GMT+2) the number of open vacancies in the labor market will be published. It is predicted that the number will decrease by 73K which is not a significant figure, but any diverging from the forecast may impact the movement of the pair. At 19:00 (GMT+2) and at 20:15 (GMT+2) officials of the US Federal Reserve Steven Kaplan and Eric Rosenberg will be speaking.

Support and resistance
Support levels: 112.20, 111.20, 110.20.
Resistance levels: 113.30, 114.00, 115.00.

Trading tips
Long positions can be opened at the market price with the target of 114.00, stop-loss – 113.30.
Short positions can be placed at the level of 112.20 with the goal of 111.20, the stop-loss is 113.00.

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


 
NZD/USD: general analysis

Current trend

During the last two weeks the NZD showed the best results among the commodity currencies and assets, which were lowering against the USD. Last week the NZD was supported by the growth of the dairy prices and the increase of the employed, and was trading flat above the level of 0.6865, which is almost the year minimum.
Today the traders are waiting for the key publications from the USA. The Export Price Index and Import Price Index will be published. The export is expected to lower and the import is expected to grow, which will decrease the trade balance. The 10-Year Note Auction data will be published, and the profitability of them is growing form the last August, which is positive for the USD. The Monthly Budget Statement is also expected, but it will affect the price insignificantly.

The NZRB interest rate decision will be published tomorrow, the rate is expected to stay on the minimum level of 1.75%. The Monetary Policy Statement is also expected, which will affect the dynamics of the pair.
The insignificant growth of the pair is expected today.

Support and resistance

Support levels: 0.6865, 0.6800, 0.6710.
Resistance levels: 0.6910, 0.7000, 0.7075, 0.7170.

Trading scenario

Open long positions at the current price with the target at 0.7000 and stop loss at 0.6870.
Sell the pair from the level of 0.6865 with the target at 0.6800 and stop loss at 0.6900.
Implementation period: 1-2 days.

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


 
AUD/USD: general analysis

Current trend

The AUD was lowering against the USD due to the list of factors, such as the RBA interest rate decision, the lowering of copper, gold and iron ore, the poor macroeconomical Australian statistics. After a quite long fall the price reversed into the upward correction form the level of 0.7330, which is quite strong support level. The breakout of this level will give a signal for the downward trend to continue.
As for the macroeconomical releases, which can affect the pair, the USA Producer Price Index is worth traders’ attention today (14:30 GMT+2) and the Initial Jobless Claims (14:30 GMT+2). The Producer Price Index is expected to grow to 0.2% in April from -0.1% in the previous month, and the Initial Jobless Claims number will grow to 245K WoW from 238K in the previous week.

Support and resistance

Technically the price consolidated on the black downward channel H4, which has been determining the price for the last two months. On the other hand, the price didn’t reach the lower border of the blue channel D1, which has been supporting the price for a year. This dynamics of the price can reflect the “bullish” mood, but positions of the sellers of the AUD/USD pair are still strong.

Support levels: 0.7310, 0.7270, 0.7200.
Resistance levels: 0.7490, 0.7440, 0.7380.

Trading scenario

Open long positions from the current price with the target at 0.7440 and stop loss at 0.7345.
Open short positions from the level of 0.7310 with the target at 0.7270, 0.7200 and stop loss at 0.7350.
Implementation period: 1-2 days.

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


 
XAU/USD: general analysis

Current trend

After the long fall the gold price met the support at the zone of 1210.00-1220.00, after which it reversed to the upward correction. The upper border of the channel D1 (green), which has been supported the price for the 4 months, coincided with the 50% Fibonacci from the last half a year price growth. Despite the strong technical support, the fundamental factors are still pressing the gold: the growth of the US bills yield and the expectations of the USA FRS interest rate rise in the June meeting

Today the market participants are waiting for the USA publications: the Retail Sales and Inflation data (14:30 GMT+2). The Retail Sales index is expected to grow to 0.6% in April from 0.5% in the previous month.

Support and resistance

Support levels: 1210.00, 1190.00, 1170.00.
Resistance levels: 1230.00, 1250.00, 1265.00.

Trading scenario

Open long positions at the current price with the target at 1230.0 0.1250.00 and stop loss at 1210.00.
Open short positions from 1210.00 with the target at 1190.00, 1170.00 and stop loss at 1230.00.
Implementation period: 1-3 days

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


 
USD/CHF: general review

Current trend

Since the middle of the previous week the pair has been in the downward correction. Both recent data from the USA (retail sales and CPI) and Switzerland (CPI and manufacturers price index) were quite weak. However, the investors worried more about the fate of the US currency which pushes the pair down. Additional interest of the market to USD is explained by the expectations of June FOMC meeting and its interest rate decision. In these terms any signs of slowdown in the US economy put considerable pressure on USD, as the market worries about postponing the interest rate increase.

Today no important statistics from Switzerland is expected. From the USA the market is waiting for the data on the number of new construction permits and houses under construction in April. The most important release will be the volume of industrial output in the USA: the indicator is expected to fall from 0.5% to 0.4% which may cause further decrease of the pair.

Support and resistance

Technically, the pair has been moving in almost horizontal range between the borders of green channel D1 and the middle line for four months. The balance line of the channel is the level of parity with USD (1.0000).

Support levels: 0.9930, 0.9850, 0.9780, 0.9700.
Resistance levels: 1.0000, 1.0050, 1.0110, 1.0180.

Trading tips

Short positions may be opened at the market price with target at 0.9850 and stop-loss at 0.9950.
Alternatively, buy positions may be opened from the level of 1.0000 with targets at 1.0050, 1.0110 and stop-loss at 0.9960.
The period of implementation is 2-3 days.

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


 
GBP/USD: general review

Current trend

On Tuesday GBP experienced volatility after the release of the data on the consumer price index. In March the indicator made 2.7% which considerably exceeds the target level of 2.0%. Investors worried that due to reduced income of households high inflation may lead to the fall of internal demand, that is why the pair went done but soon restored its lost positions. Today's releases included positive data on the unemployment rate (that dropped to 4.6% in March) and the average salary (the indicator with bonuses increased by 2.4%).

Generally, the pair is consolidating between the levels of 1.2865 and 1.2990. No considerable difficulties in the British economy caused by Brexit have been observed yet, and GBP is not weakening. On the other hand, the investors worry that FOMC intends to increase the interest rate, and President Trump states USD is too strong.
Among Wednesday news one may pay attention to the statement by the member of the Monetary Policy Committee of the Bank of England Haldane that could shed some light on further actions of the British regulator.
The growth of the pair is a forecast for the next two days.

Support and resistance

Support levels: 1.2700, 1.2780, 1.2865.
Resistance levels: 1.2990, 1.3040, 1.3110, 1.3200.

Trading tips

Long positions may be opened at the market price with targets at 1.2990, 1.3040 and stop-loss at 1.2900.
Alternatively, sell positions may be opened from the level of 1.2865 with target at 1.2780 and stop-loss at 1.2950.

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


 
Brent Crude Oil: general analysis

Current trend

On Wednesday the Brent Crude Oil price grew, reacting to the API Crude Oil Stocks change that showed the USA resources lowering. The EIA Crude Oil Stocks change, which was published in the Wednesday evening, showed the lowering by 1.753 million barrel in a week. As a result the Brent Crude Oil grew by 1.81% and reached the area of the level of 52.64. The price tried to consolidate above the level for some times, but didn’t succeed, so the price was corrected downwards. It’s hard to increase the price above the level, taking into consideration the global oil surplus problems. After the slight growth of the last days the price entered the downward correction.

The traders are waiting for the further OPEC signals upon the stabilization of the world oil production level. The nearest OPEC meeting is on May, 25 in Vienna.

Support and resistance

Technical indicators reflect the growing influence of the sellers. Bollinger Bands are pointed downwards. MACD histogram is in the positive zone; however its volumes are decreasing confirming the downward trend.
Support levels: 51.20, 50.30, 49.20.
Resistance levels: 52.64, 53.67, 54.44.

Trading scenario

Open short positions below the level of 51.20 with the target at around 50.30 and stop loss at 51.45.
Open long positions above the level of 52.64 with the target at around 53.67 and stop loss at 52.30.

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