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WTI: Current dynamics

10/19/2018

On Friday, the price of WTI crude oil reached an important support level of 68.60 (Fibonacci level 23.6% of the correction to the growth wave that started in June 2017 from the level of support near the 42.00 mark), after which an upward correction began. Just below is another strong support level of 68.10 (EMA144 on the daily chart).

As long as the price is above the key support level of 66.40 (ЕМА200 on the daily chart and the bottom line of the ascending channel on the weekly chart), the long-term uptrend remains.

If the price returns to the zone above the resistance level of 70.70, long positions will again become relevant.

The overall trend is still bullish. The growth targets in the event of a resumption of positive dynamics are located at the resistance levels of 73.85 (July highs), 75.00, 76.80 (annual and multi-year highs).

We are awaiting publication (at 17:00 GMT) of the weekly report of the American oilfield service company Baker Hughes on the number of active oil drilling rigs in the USA. If the report indicates a further increase in the number of drilling rigs (at the moment their number is 869 units), this will have an additional negative impact on oil quotations.

Support Levels: 68.60, 68.10, 66.40

Resistance Levels: 70.70, 71.50, 72.00, 72.80, 73.85, 75.00, 76.80

 

Trading Scenarios

Sell ​​Stop 68.50. Stop Loss 69.80. Take-Profit 68.10, 66.40

Buy Stop 69.80. Stop Loss 68.50. Take-Profit 70.70, 71.50, 72.00, 72.80, 73.85, 75.00, 76.80

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*) For up-to-date and detailed analytics and news on the forex market visit Tifia Forex Broker website tifia.com

 

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EURUSD: ECB. Press conference

10/25/2018

Current situation

As expected, the European Central Bank left monetary policy unchanged on Thursday; the key rate remained unchanged at 0% and the ECB deposit rate for commercial banks at -0.4%. The ECB management said: “Net asset purchases will end at the end of December 2018, depending on the incoming data. We will be reinvesting for a long period after the completion of net purchases. Net asset purchases will be 15 billion euros per month until the end of December 2018, and rates will remain at current levels at least until the end of the summer of 2019”

Now the attention of market participants will be focused on the speech of the ECB President Mario Draghi, which will begin at 12:30 (GMT). If Mario Draghi makes unexpected statements, then volatility will increase dramatically. It is famous for its ability to expand its financial markets with its comments.

If Mario Draghi announces the possibility of extending the QE program after December, the euro could be under additional pressure and decline.

 

 

Meanwhile, EUR / USD remains under pressure, trading below the key resistance level of 1.1720 (EMA200, as well as the upper limit of the downward channels on the daily and weekly charts).

The triggering of stop-losses at resistance levels 1.1450 (ЕМА200 on the 30-minute chart) and 1.1480 (ЕМА200 on the 1-hour chart) may accelerate the corrective growth of EUR / USD, up to the resistance level of 1.1565.

However, negative dynamics prevail against the background of important fundamental factors. Recommended short positions.

Support Levels: 1.1400, 1.1385, 1.1345, 1.1285, 1.1100

Resistance Levels: 1.1428, 1.1450, 1.1480, 1.1565, 1.1700, 1.1720, 1.1790, 1.1815

 

Trading recommendations

Sell Stop 1.1380. Stop-Loss 1.1435. Take-Profit 1.1345, 1.1285, 1.1100

Buy Stop 1.1435. Stop-Loss 1.1380. Take-Profit  1.1450, 1.1480, 1.1565, 1.1700, 1.1720

 

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*) For up-to-date and detailed analytics and news on the forex market visit Tifia Forex Broker website tifia.com

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WTI: prices have reached important levels of support.

10/26/2018

Current Dynamics

As the Energy Information Administration of the US Department of Energy reported on Wednesday, oil reserves in the country rose again (+6.35 million barrels against the forecast of 3.69 million barrels and after growing by 6.49 million barrels two weeks earlier).

Oil prices predictably fell in response to this publication.

Investors in the oil market are closely monitoring the situation in the stock markets after large-scale sales occurring this month.

The S&P500 index, for example, has lost 9.5% since the beginning of the month; the Nasdaq Composite has rolled back more than 10% from its recent maximum, and the DJIA - by 7.2%.

Oil prices are falling against the backdrop of prospects for increasing supply, due to concerns about global economic growth, as well as the strengthening of the dollar.

Saudi Arabian Energy Minister Khaled Al-Falih said Monday that his country could increase oil production to 11 million barrels per day against the current average production level of 10.7 million barrels per day.

So far, there has been a negative trend in oil prices. However, a political factor may appear in the dynamics of oil prices. If the United States and other Western countries impose sanctions on Saudi Arabia in connection with the murder of journalist Jamal Hashoggi, the Saudis, in response, can respond with an oil embargo that would lead to a price spike.

On Friday, oil market participants will follow the publication (at 17:00 GMT) of the weekly report of the American oilfield service company Baker Hughes on the number of active oil drilling rigs in the United States. At the moment, their number is 873 units against 869 units and 861 units two and three weeks earlier. If the report indicates a further increase in the number of drilling rigs, this will have an additional negative impact on oil quotes. As long as oil prices remain high, American oil companies have a significant prospect and incentive to increase production, which, in turn, is another deterrent to oil price growth.

On the whole, the long-term positive dynamics of oil prices persists, despite a three-week decline.

Prices have reached important support levels, from which a rebound is most likely.

Since November 1, sanctions against Iran by the United States come into force, which increases the likelihood of price growth due to the expected drop in Iranian exports by 2 million barrels per day. High likelihood of disruptions in oil supplies from Venezuela and Libya can also support prices.

*)An advanced fundamental analysis is available on the Tifia Forex Broker website at tifia.com/analytics

 

Support and Resistance Levels

As a result of a three-week decline, the price of WTI crude oil reached an important support level of 66.50 (ЕМА200 on the daily chart and the lower line of the rising channel on the weekly chart). Above this level there is a long-term upward trend.

The signal for the resumption of long positions will be the return of prices to the zone above the resistance levels of 68.00 (ЕМА144 on the daily chart), 68.60 (ЕМА200 on the 1-hour chart).

The overall trend is still bullish. Growth targets in the event of a resumption of positive dynamics are located at resistance levels of 72.80 (May highs), 73.80 (July highs), 76.70 (annual and multi-year highs).

Support Levels: 66.50, 66.00

Resistance Levels: 68.00, 68.60, 70.00, 70.70, 71.50, 72.00, 72.80, 73.80, 75.00, 76.70

 

Trading Scenarios

Sell ​​Stop 65.80. Stop Loss 68.70. Take-Profit 65.00, 64.00

Buy Stop 68.70. Stop-Loss 65.80. Take-Profit 70.00, 70.70, 71.50, 72.00, 72.80, 73.80, 75.00, 76.70

 

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*) For up-to-date and detailed analytics and news on the forex market visit Tifia Forex Broker website tifia.com

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GBP/USD: Brexit - the main problem for the pound

10/30/2018

Current Dynamics

Investors continue to analyze the budget submitted on Monday. Finance Minister Philip Hammond announced the completion of the savings regime, signaling an increase in government spending in the coming years. He expects that by the end of the fiscal year ending in March 2024, the budget deficit will be reduced to 19.8 billion pounds. This view is partly based on higher forecasts for economic growth and tax revenues over the next two years.

Nevertheless, the ongoing negotiations on Brexit create a high level of uncertainty about the prospects for the economy. Brexit hard probability, i.e. UK exit from the EU without any agreement, puts pressure on the pound and the British stock market.

The budget presented on Monday depends on reaching a favorable Brexit agreement. And until the agreement on Brexit has been reached, the realization of the largest spending in eight years remains in question.

In the case of a hard Brexit, a deeper drop in pounds is likely.

On Thursday, a meeting of the Bank of England will be held, and at 12:00 (GMT) the decision on rates will be published. It is expected that the rate will remain at the current level of 0.75%. A speech by Bank of England CEO Mark Carney, scheduled for 12:30 (GMT), could stir up markets if he makes unexpected statements. The soft rhetoric of Carney will further lower the pound and the pair GBP / USD.

*)An advanced fundamental analysis is available on the Tifia Forex Broker website at tifia.com/analytics

 

Support and Resistance Levels

Long-term negative dynamics prevails below the key resistance level of 1.3210 (ЕМА200 on the daily chart and the Fibonacci level of 23.6% of the correction to the decline of GBP / USD in the wave that started in July 2014 near the level of 1.7200).

In the case of a confirmed breakdown of the support level of 1.2780 (bottom line of the downward channel on the daily chart) GBP / USD will go inside the downward channel on the weekly chart, the lower limit of which near the 1.2000 mark (2017 lows) is passing. The immediate goal of reducing GBP / USD is at the support level of 1.2660 (2018 lows).

The signal for the start of corrective growth will be the breakdown of the short-term resistance level of 1.2915 (ЕМА200 on the 1-hour chart). The maximum correctional growth is possible not above the resistance level of 1.3010 (ЕМА200 on the 4-hour chart, ЕМА50 on the daily chart).

  Support Levels: 1.2700, 1.2660, 1.2590, 1.2365, 1.2110, 1.2000

Resistance Levels: 1.2855, 1.2915, 1.3010, 1.3210

 

Trading Scenarios

Sell ​​in the market. Stop Loss 1.2860. Take-Profit 1.2700, 1.2660, 1.2590, 1.2365, 1.2110, 1.2000

Buy Stop 1.2860. Stop Loss 1.2750. Take-Profit 1.2915, 1.3010, 1.3210

 

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*) For up-to-date and detailed analytics and news on the forex market visit Tifia Forex Broker website tifia.com

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NZD/USD: Market expectations and trading scenarios

06/11/2018

 

After the publication of data from the New Zealand labor market on Wednesday, investors will follow the RBNZ meeting. At 20:00 (GMT) the decision of the RBNZ on the interest rate will be published.

As expected, the interest rate will remain at the same level of 1.75%. With the escalation of the trade conflict between the United States and China, the largest trade and economic partners of New Zealand, the RBNZ is unlikely to decide to change its monetary policy, according to economists, until mid-2019.

If the accompanying comments of the RBNZ or at the press conference, which also starts at 20:00 (GMT), contain signals on the possibility of tightening monetary policy in the near future, the New Zealand dollar may strengthen, including against the US dollar, even on the Fed’s plans to tighten US monetary policy.

While NZD / USD is trading below the key resistance level of 0.6810 (ЕМА200 on the daily chart), the long-term negative trend continues, despite the current upward correction.

The signal for the resumption of short positions will be a breakdown of the local support level of 0.6630. After the breakdown of the short-term support level of 0.6600 (EMA200 on the 1-hour chart), the decline will accelerate.

*)An advanced fundamental analysis is available on the Tifia Forex Broker website at tifia.com/analytics

 

Support levels: 0.6630, 0.6600, 0.6575, 0.6500, 0.6430

Resistance levels: 0.6700, 0.6740, 0.6810, 0.6860

 

Trading Scenarios

Sell ​​Stop 0.6620. Stop Loss 0.6710. Take-Profit 0.6600, 0.6575, 0.6500, 0.6430

Buy Stop 0.6710. Stop Loss 0.6620. Take-Profit 0.6740, 0.6810, 0.6860

 

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*) For up-to-date and detailed analytics and news on the forex market visit Tifia Forex Broker website tifia.com

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USD/CAD: the US dollar fell amid the election to Congress

07/11/2018

Current Dynamics

After the results of voting in the primary elections to the US Congress became known, the dollar fell in the foreign exchange market.

The DXY dollar index, which tracks the US currency against a basket of 6 other major currencies, is close to 95.55 at the beginning of the European session on Wednesday, 57 points (0.6%) lower than the closing price on Tuesday.

The pair USD / CAD fell on Wednesday by the beginning of the American session by 0.35% to 1.3080.

As it became known, the Democratic Party on Tuesday gained control of the House of Representatives. Republicans retained a majority in the Senate and the White House.

According to economists, Trump will find it harder to reconcile protectionist measures, which increases the likelihood of rising inflation and a more significant increase in the Fed's key interest rate. Against this background, most likely, the dollar will soon restore lost positions and resume growth.

On Wednesday, market participants will pay attention to the publication at 12:30 (GMT) of the Ivey business activity index (PMI), which assesses the business climate in Canada. The index is an important indicator of market conditions and the economy as a whole.

 The Bureau of Statistics of Canada presented last Friday the data according to which Canada’s foreign trade deficit in September amounted to 416 million Canadian dollars (economists expected a surplus of 200 million Canadian dollars). This is the 21st month in a row, when Canada’s monthly trade balance with the rest of the countries remains in the deficit area.

At the same time, the trade deficit with other countries is observed against the background of a simultaneous reduction in Canadian exports and imports.

Bank of Canada Governor Stephen Poloz announced at the end of September that interest rates are expected to gradually increase. In October, the Bank of Canada raised its interest rate by 0.25% to 1.75%.

After weak macro statistics, presented on Friday, some economists concluded that a further increase in interest rates by the Bank of Canada remains in question.

At the same time, the US economy will continue to grow, and the Fed is likely to keep its course and raise the key interest rate again in 2018 and three times in 2019. And this is a strong fundamental factor in favor of further strengthening the US dollar, including in the USD / CAD pair.

*)An advanced fundamental analysis is available on the Tifia Forex Broker website at tifia.com/analytics

 

Support and Resistance Levels

USD / CAD maintains a positive trend, trading above the key support level of 1.2970 (ЕМА200 on the daily chart). The closest targets in case of continued growth will be the resistance levels of 1.3175 (August highs and the upper limit of the rising channel on the daily chart), 1.3225 (September highs).

The signal for the resumption of long positions will be the growth of USD / CAD in the zone above the short-term resistance level of 1.3105 (ЕМА200 on the 1-hour chart).

Above the support level of 1.2970 long positions are preferred. Above the support level of 1.3055 (EMA200 on the 4-hour chart) purchases look safe.

Only a breakdown of support levels of 1.2740 (Fibonacci level 38.2% of the downward correction to the growth of the pair in the global uptrend since September 2012 and 0.9700), 1.2670 (ЕМА200 on the weekly chart) will cancel the bull trend.

  Support Levels: 1.3055, 1.2970, 1.2740, 1.2670

Resistance Levels: 1.3105, 1.3175, 1.3225, 1.3285, 1.3380

 

Trading Scenarios

Sell ​​Stop 1.3045. Stop Loss 1.3110. Take-Profit 1.3000, 1.2970, 1.2740, 1.2670

Buy Stop 1.3110. Stop Loss 1.3045. Take-Profit 1.3175, 1.3200, 1.3225, 1.3285, 1.3380

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*) For up-to-date and detailed analytics and news on the forex market visit Tifia Forex Broker website tifia.com

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NZD/USD: Trading Scenarios

09/11/2018

Against the background of the weakening of the US dollar since the beginning of October, the NZD / USD pair is in an upward correction after a strong fall from mid-April and the level of 0.7380.

Having pushed off from the support level of 0.6430, the NZD / USD pair was able to grow by almost 400 points. The upward correction was stopped last Wednesday at a key resistance level of 0.6810 (ЕМА200 on the daily chart).

Following the two-day meeting, the Fed decided to keep the current interest rate at 2.25%. The decision of the Fed was published on Thursday (19:00 GMT). In a statement, Fed officials confirmed their plans to further increase the interest rate. Market participants expect a rate hike at the December Fed meeting (12/19/2018).

The US dollar strengthened after the publication of the Fed statement. On Friday, the dollar continued to grow, while the NZD / USD pair slightly decreased, finding support at 0.6740 (ЕМА144 on the daily chart).

Breakdown of this support level may provoke a decline to the support level 0.6610 (ЕМА200 on 4-hour chart). A decline below the support level of 0.6610 will mean a resumption of the bearish trend.

Only a rise to the zone above the resistance level of 0.6800 (Fibonacci level 23.6% of the upward correction to the global wave of the pair's decline from the level of 0.8800, started in July 2014; the wave minima are near the level of 0.6260) will mean a break of the bearish NZD / USD trend.

Below the support level of 0.6682 (ЕМА200 on the 1-hour chart) short positions again become preferable.

*)An advanced fundamental analysis is available on the Tifia Forex Broker website at tifia.com/analytics

 

Support levels: 0.6740, 0.6682, 0.6610, 0.6515, 0.6430

Resistance levels: 0.6810, 0.6860

 

Trading Scenarios

Sell ​​Stop 0.6710. Stop Loss 0.6820. Take-Profit 0.6682, 0.6610, 0.6515, 0.6430

Buy Stop 0.6820. Stop Loss 0.6710. Take-Profit 0.6860, 0.6900

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*) For up-to-date and detailed analytics and news on the forex market visit Tifia Forex Broker website tifia.com

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WTI: it's too early to talk about the turnaround of the bear market

11/13/2018

Current Dynamics

After the representatives of Saudi Arabia announced last weekend that in December the kingdom would unilaterally reduce oil exports, on Monday, oil prices rose, opening the trading day with a gap up.

However, by the end of the trading day on Monday, prices dropped again, closing the trading day in negative territory.

Oil prices fell after US President Donald Trump wrote in his Twitter account that he hoped that Saudi Arabia and OPEC would refuse to reduce oil production. In his opinion, oil prices should be significantly lower.

WTI oil prices have lost almost 25% over the last month, demonstrating the longest period of decline since the start of futures trading on this sort of oil in 1983.

Oil reserves in the United States exceed 420 million barrels. Last Wednesday, the US Department of Energy published weekly data, which indicated another increase in US oil reserves of +5.78 million barrels of oil compared to +3.22 and +6.35 two and three weeks earlier.

At the same time, the number of active oil drilling rigs in the USA rose again last week to 886 units, compared to 874, 869, 861 units earlier.

However, in recent months, oil reserves are close to the average 5-year values. It is unlikely that OPEC will decide to reduce production volumes. The next meeting of OPEC on this issue will be held in December.

A further drop in oil prices is likely, both against the background of a stronger dollar and rising US oil reserves. The volatility of global stock markets, which turned out to be in negative territory below key resistance levels, also creates prerequisites for a further decline in demand for oil.

On Thursday (15:30 GMT), the weekly report of the Energy Information Administration of the US Department of Energy on oil and petroleum products in the country’s storage facilities will be published.

The previous value of +5.78 million barrels of oil and petroleum products. If the reserves of oil and oil products in the United States rose again last week, then this will negatively affect oil prices.

*)An advanced fundamental analysis is available on the Tifia Forex Broker website at tifia.com/analytics

 

Support and Resistance Levels

Below the key resistance level of 66.00 (EMA200 on the daily chart) negative dynamics prevail.

The breakdown of support levels of 57.80 (Fibonacci level 38.2% of the correction to the growth wave that began in February 2016 from the support level near the 27.30 mark), 57.20 (ЕМА200 on the weekly chart) can return the prices for WTI oil to the global bearish trend.

Support Levels: 57.80, 57.20

Resistance Levels: 61.30, 62.80, 64.00, 65.00, 66.00

 

Trading Scenarios

Sell ​​Stop 58.20. Stop Loss 61.40. Take-Profit 57.80, 57.20

Buy Stop 61.40. Stop Loss 58.20. Take-Profit 62.80, 64.00, 65.00, 66.00

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*) For up-to-date and detailed analytics and news on the forex market visit Tifia Forex Broker website tifia.com

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GBP/USD: the Brexit theme remains decisive in the dynamics of the pound

11/16/2018

Current Dynamics

The British pound stabilized on Friday after a sharp decline on Thursday on Brexit-related concerns. On Thursday, it became known about the resignation of the British Minister for Brexit Dominic Raab. Six members of the government also resigned.

The pound fell on Thursday even despite the plan submitted by the British Prime Minister Theresa May on the exit from the European Union, approved by the British parliament on Wednesday.

"This decision will be under scrutiny, but this decision is based on the best interests of the UK", said May.

At a press conference on Thursday evening, May defended her version of an agreement with the EU. “This is such a Brexit that meets the priorities of the British people”, she said. If you do not move forward, it will mean “choosing a path leading to deep and dangerous uncertainty”, in her opinion.

The pound also remained under pressure on Thursday after official data released, according to which retail sales in the UK fell by 0.5% in October compared with September, with an expected growth of 0.2%.

European Commission President Tusk said on Thursday that the EU wants a political declaration on a future agreement with the UK to be submitted by November 20, and a meeting of EU leaders on this issue will be convened on November 25.

Probably, the pound will remain under pressure as long as uncertainty remains regarding Brexit.

At the same time, the US dollar maintains its position, despite a slight decrease in the dollar index DXY. On Friday, at the beginning of the US trading session, the DXY dollar index, which tracks the US currency against a basket of 6 other major currencies, is trading near 96.85, after DXY reached a 16-month high at the beginning of the week, exceeding 97.50.

Fed Chairman Jerome Powell on Thursday reiterated that the US economy is in "good shape". It is widely expected that the Fed will raise the key interest rate in December, and then raise the interest rate several times in 2019.

This is a strong fundamental factor in favor of further strengthening the dollar.

*)An advanced fundamental analysis is available on the Tifia Forex Broker website at tifia.com/analytics

 

  Support and Resistance Levels

After GBP / USD dropped sharply on Thursday, the pound rose on Friday and GBP / USD recovered.

Nevertheless, despite the recovery of the pound, short positions are preferable until clarifying the situation around Brexit. A meeting of EU leaders on this issue will be convened on November 25.

Long-term negative dynamics prevails below the key resistance level of 1.3210 (ЕМА200 on the daily chart and the Fibonacci level of 23.6% of the correction to the decline of GBP / USD in the wave that started in July 2014 near the level of 1.7200).

The signal for opening long positions and the beginning of an upward correction will be the return of GBP / USD to the zone above the short-term resistance level of 1.2980 (ЕМА200 on the 4-hour chart, ЕМА50 on the daily chart).

  Support Levels: 1.2730, 1.2660, 1.2500, 1.2365, 1.2110, 1.2000

Resistance Levels: 1.2860, 1.2915, 1.2980, 1.3030, 1.3210, 1.3300

 

Trading Scenarios

Sell ​​Stop 1.2870. Stop Loss 1.2780. Take-Profit 1.2800, 1.2700, 1.2660, 1.2500, 1.2365, 1.2110, 1.2000

Buy Stop 1.2870. Stop Loss 1.2780. Take-Profit 1.2915, 1.2980, 1.3030, 1.3210, 1.3300

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*) For up-to-date and detailed analytics and news on the forex market visit Tifia Forex Broker website tifia.com

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GBP/USD: Uncertainty is growing

11/20/2018

Current Dynamics

According to the manager of the Bank of England Mark Carney, Brexit and the exit of the UK from the EU without an agreement - “this is a real economic shock, so central banks will play secondary roles”. In this situation, raising or lowering interest rates by the Bank of England is not so important for the economy.

Mark Carney said on Tuesday in Parliament, the Bank of England’s management does not doubt the ability of UK banks to withstand if Brexit negotiations end in nothing. The probability of a Britain exit from the EU without an agreement has grown to about 50%.

Last week, British Prime Minister Theresa May proposed her plan to conclude an agreement with the EU on Brexit.

According to the representative of the Bank of England, Michael Sanders, British companies are not ready for the fact that the country's exit from the EU will take place without an agreement on further trade relations.

Uncertainty is growing, and it is not yet clear whether the country's prime minister Theresa May can convince parliament to support the agreement reached with the EU. All of these are negative factors for the pound. A pair of GBP / USD is prone to decline amid problems with the promotion of the Brexit project in the British Parliament and rumors about the possible resignation of Theresa May.

*)An advanced fundamental analysis is available on the Tifia Forex Broker website at tifia.com/analytics

 

Support and Resistance Levels

GBP / USD continues to trade in a long-term downtrend. Despite the current correctional growth, short positions are preferable. The situation around Brexit remains the main negative factor for the pound.

A breakdown of the short-term resistance level of 1.2897 (ЕМА200 on the 1-hour chart) may trigger a further corrective rise to the resistance level of 1.2962 (ЕМА200 on the 4-hour chart, ЕМА50 on the daily chart). Further growth is unlikely until an agreement is reached on Brexit.

Below the key resistance levels of 1.3210 (Fibonacci level 23.6% of the correction to the decline of the GBP / USD pair in the wave that started in July 2014 near the level of 1.7200), 1.3180 (ЕМА200 on the daily chart) negative dynamics prevail.

Support Levels: 1.2730, 1.2660, 1.2500, 1.2365, 1.2110, 1.2000

Resistance Levels: 1.2897, 1.2962, 1.3030, 1.3180, 1.3210, 1.3300

 

Trading Scenarios

Sell ​​in the market. Stop Loss 1.2910. Take-Profit 1.2730, 1.2700, 1.2660, 1.2500, 1.2365, 1.2110, 1.2000

Buy Stop 1.2910. Stop Loss 1.2820. Take-Profit 1.2962, 1.3030, 1.3180, 1.3210, 1.3300

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*) For up-to-date and detailed analytics and news on the forex market visit Tifia Forex Broker website tifia.com

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XAU/USD: Trading Scenarios

22/11/2018

Corrective XAU / USD growth continues, as evidenced by the breakdown of short-term resistance levels of 1218.00 (ЕМА200 on 4-hour chart), 1220.00 (ЕМА200 on 1-hour chart).

Indicators OsMA and Stochastic on the 1-hour, 4-hour, daily charts recommend long positions.

In case of continued growth, the immediate goal will be the resistance level of 1234.00 (EMA144 on the daily chart).

Confirmed breakdown of resistance levels of 1243.00 (EMA200 on the daily chart), 1248.00 (Fibonacci level 50% of the correction to the wave of decline since July 2016) will indicate the end of the bearish trend.

Below resistance levels of 1243.00, 1248.00, short positions are preferable, despite corrective growth; bearish trend remains in force.

The signal for the resumption of sales will be the breakdown of support levels of 1220.00, 1218.00.

The targets of declining are support levels of 1197.00 (November lows), 1185.00 (Fibonacci level 23.6%), 1160.00 (minimums of the year).

*)An advanced fundamental analysis is available on the Tifia Forex Broker website at tifia.com/analytics

 

Support Levels: 1220.00, 1218.00, 1200.00, 1197.00, 1185.00, 1160.00

Resistance Levels: 1234.00, 1243.00, 1248.00, 1261.00, 1277.00

 

Trading Scenarios

Sell ​​Stop 1223.00. Stop Loss 1230.00. Take-Profit 1220.00, 1218.00, 1200.00, 1197.00, 1185.00, 1160.00

Buy Stop 1230.00. Stop Loss 1223.00. Take-Profit 1234.00, 1243.00, 1248.00, 1261.00, 1277.00

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*) For up-to-date and detailed analytics and news on the forex market visit Tifia Forex Broker website tifia.com

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GBP/USD: Trading Scenarios

11/23/2018

Despite the approval on Thursday of the preconditions for a British exit from the EU, the pound remains under pressure. At the same time, the issue of the border of Great Britain with Northern Ireland is not resolved. Now the draft agreement submitted by Prime Minister Theresa May should be approved by the country's parliament. Former Brexit minister Dominic Raab believes parliamentarians will vote against the deal. This will require a repeat vote, which is likely to be scheduled for February next year, and most likely the pound will remain under pressure until this date.

GBP / USD continues to trade in a descending channel on the daily chart. The main trend is still bearish. Short positions are preferred.

Below the key resistance levels of 1.3210 (Fibonacci level 23.6% of the correction to the decline of the GBP / USD pair in the wave that started in July 2014 near the level of 1.7200), 1.3180 (ЕМА200 on the daily chart) negative dynamics prevail.

The signal for the resumption of long positions will be the breakdown of the short-term resistance level of 1.2940 (ЕМА200 on the 4-hour chart). Growth above resistance levels 1.3180, 1.3210 is unlikely.

The situation around Brexit remains the main negative factor for the pound.

*)An advanced fundamental analysis is available on the Tifia Forex Broker website at tifia.com/analytics

 

  Support Levels: 1.2770, 1.2730, 1.2700, 1.2660, 1.2500, 1.2365, 1.2110, 1.2000

Resistance Levels: 1.2860, 1.2940, 1.3030, 1.3180, 1.3210, 1.3300

 

Trading Scenarios

Sell in the market. Stop Loss 1.2880. Take-Profit 1.2770, 1.2730, 1.2700, 1.2660, 1.2500, 1.2365, 1.2110, 1.2000

Buy Stop 1.2880. Stop Loss 1.2830. Take-Profit 1.2940, 1.3030, 1.3180, 1.3210, 1.3300

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*) For up-to-date and detailed analytics and news on the forex market visit Tifia Forex Broker website tifia.com

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USD/CHF: Support and Resistance Levels

30/11/2018

USD / CHF continues to grow in the ascending channel on the weekly chart, the upper limit of which passes above the resistance level of 1.0130 (2016 highs and Fibonacci  level 100% of the upward correction to the last global decline wave since December 2016 and from 1.0300). On Friday, USD / CHF continues to grow, trading above the support level of 0.9945 (ЕМА50 on the daily chart).

USD / CHF maintains a long-term positive trend, trading above the key support level of 0.9855 (ЕМА200 on the daily chart). Breakdown of the support level of 0.9945 may trigger a correction to the support level of 0.9855.

However, long positions are preferred. Purchases look safe above 0.9945 support level.

*)An advanced fundamental analysis is available on the Tifia Forex Broker website at tifia.com/analytics

 

Support Levels: 0.9945, 0.9875, 0.9855, 0.9745

Resistance Levels: 1.0000, 1.0040, 1.0090, 1.0100, 1.0300, 1.0130

 

Trading Scenarios

Buy in the market. Stop Loss 0.9935. Take-Profit 1.0000, 1.0040, 1.0090, 1.0100, 1.0300, 1.0130

Sell ​​Stop 0.9935. Stop Loss 0.9980. Take-Profit 0.9875, 0.9855, 0.9745

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*) For up-to-date and detailed analytics and news on the forex market visit Tifia Forex Broker website tifia.com

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GBP/USD: the pound strengthened on Tuesday

12/04/2018

Current Dynamics

The European Court’s decision on the possibility of the UK abandoning Brexit, as well as the publication of the Purchasing Managers Index (PMI) for the UK construction sector, had a positive effect on the pound. In November, the PMI index for the UK construction sector rose to 53.4 from 53.2 in October after a decline in activity over the previous 8 months. IHS Markit also reported that in November, the construction sector showed a generally strong growth, and the pace of job creation in it accelerated to a maximum since December 2015.

On Tuesday, the British Parliament will begin a 5-day discussion of the two documents that make up the Brexit agreement and formulate a way out of the UK from the EU and the future relationship between the UK and the bloc.

According to the Brexit deal, the UK is granted a transition period from March 2019 to December 2020, which can then be extended until December 2022.

Nevertheless, numerous representatives of the Conservative Party, as well as some representatives of the opposition, subjected the draft agreement to harsh criticism. Many members of the Conservative Party of Parliament oppose the Brexit plan agreed by the UK and the EU.

Voting on a deal with the EU in the House of Commons of the British Parliament is scheduled for December 12.

Many experts say that if the parliament refuses to approve the agreement, GBP / USD will fall into the range of 1.2000 - 1.2500, and if the lawmakers support the deal, it will quickly grow to 1.3500 - 1.4000.

*)An advanced fundamental analysis is available on the Tifia Forex Broker website at tifia.com/analytics

 

Support and Resistance Levels

Positive news supported the pound on Tuesday, allowing the GBP / USD pair to rise to 1.2840 at the beginning of the European session.

Nevertheless, the further strengthening of the pound and the growth of the GBP / USD is unlikely. Until December 12, investors will avoid major deals on the pound.

There are risks that in case of the parliament’s refusal to approve the Brexit agreement, the GBP / USD pair will fall into the range of 1.2000 - 1.2500.

The signal for the development of this scenario will be the breakdown of the local support level of 1.2700 (August and October lows).

The main trend is still bearish. Below the key resistance levels of 1.3210 (Fibonacci level 23.6% of the correction to the decline of the GBP / USD pair in the wave that started in July 2014 near the level of 1.7200), 1.3140 (ЕМА200 on the daily chart) negative dynamics prevail.

Short positions are preferred.

Support Levels: 1.2785, 1.2700, 1.2600, 1.2500, 1.2365, 1.2110, 1.2000

Resistance Levels: 1.2885, 1.2920, 1.3030, 1.3140, 1.3210, 1.3300

 

Trading scenarios

Sell ​​in the market. Stop Loss 1.2890. Take-Profit 1.2700, 1.2660, 1.2600, 1.2500, 1.2365, 1.2110, 1.2000

Buy Stop 1.2890. Stop Loss 1.2780. Take-Profit 1.2920, 1.3030, 1.3140, 1.3210, 1.3300, 1.3400, 1.3500, 1.3600, 1.3760

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*) For up-to-date and detailed analytics and news on the forex market visit Tifia Forex Broker website tifia.com

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USD/CAD: Support and Resistance Levels

06/12/2018

Last Wednesday, the Bank of Canada left its key interest rate unchanged, at 1.75%. In a statement explaining the decision to leave interest rates unchanged, a much more cautious tone is used than in previous statements. On Thursday (13:50 GMT) Bank of Canada Governor Stephen Poloz will deliver a speech. The soft rhetoric of Stephen Poloz regarding the bank’s monetary policy will further weaken the Canadian dollar.

USD / CAD maintains a positive trend, trading in the ascending channel on the weekly chart, the upper limit of which is above the resistance level of 1.3600. Above the key support level of 1.3025 (ЕМА200 on the daily chart) a bullish trend remains.

In case of breakdown of the resistance level 1.3450 (Fibonacci level 23.6% of the downward correction to the growth of the pair in the global uptrend since September 2012 and 0.9700).

The growth targets will be the resistance levels of 1.3600, 1.3790 (2017 highs). Long positions are preferred.

Only a breakdown of support levels 1.2740 (Fibonacci level of 38.2%), 1.2700 (EMA200 on the weekly chart) will cancel the bull trend.

*)An advanced fundamental analysis is available on the Tifia Forex Broker website at tifia.com/analytics

 

Support Levels: 1.3380, 1.3300, 1.3285, 1.3225, 1.3195, 1.3025, 1.2900, 1.2800, 1.2740, 1.2700

Resistance Levels: 1.3450, 1.3600, 1.3790

 

Trading Scenarios

Sell ​​Stop 1.3370. Stop-Loss 1.3460. Take-Profit 1.3300, 1.3285, 1.3225, 1.3195, 1.3025

Buy Stop 1.3460. Stop-Loss 1.3370. Take-Profit 1.3600, 1.3790

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*) For up-to-date and detailed analytics and news on the forex market visit Tifia Forex Broker website tifia.com

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XAU/USD: Market expectations

12/07/2018          

Against the background of monetary tightening by the Fed since April, gold prices have been in a steady downward trend. In mid-August, the XAU / USD pair reached an annual minimum near the mark of 1160.00, however, then an upward correction began, raising the price of gold to the mark of 1244.00 dollars per troy ounce. Nevertheless, the overall gold trend remains bearish, and the upward correction may end near the reached resistance levels of 1242.00 (ЕМА200 on the daily chart), 1248.00 (Fibonacci level 50% of the correction to the decline wave from July 2016), if the Fed will give clear signals to further tighten its monetary policy.

The breakdown of the support level of 1233.00 (EMA144 on the daily chart) will be the beginning of the return of XAU / USD to the bearish trend.

The soft rhetoric of statements by Fed officials could provoke a breakdown of the achieved resistance levels and a further growth of the XAU / USD towards resistance levels of 1260.00 (ЕМА200 on the weekly chart and the upper limit of the upward channel on the daily chart), 1277.00 (Fibonacci level 61.8%).

We remind you that the publication of key data for the Fed from the US labor market is scheduled for 13:30 (GMT). Predicting the market response to the publication of indicators is often difficult. In any case, when these indicators are published, a surge in volatility is expected in trading not only for USD, but also for the entire financial market. Probably the most cautious investors would prefer to stay out of the market during this time period.

Support Levels: 1233.00, 1220.00, 1212.00, 1204.00, 1198.00, 1185.00, 1160.00

Resistance Levels: 1242.00, 1248.00, 1260.00, 1277.00

*)An advanced fundamental analysis is available on the Tifia Forex Broker website at tifia.com/analytics

 

Trading scenarios

Sell ​​Stop 1232.00. Stop Loss 1245.00. Take-Profit 1220.00, 1212.00, 1204.00, 1198.00, 1185.00, 1160.00

Buy Stop 1245.00. Stop Loss 1232.00. Take-Profit 1248.00, 1260.00, 1277.00

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*) For up-to-date and detailed analytics and news on the forex market visit Tifia Forex Broker website tifia.com

 

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USD/CHF: on the eve of the meeting of the National Bank of Switzerland

Current dynamics

12/12/2018

On Thursday, a regular meeting of the Swiss National Bank will be held on monetary policy issues. The decision on rates will be published at 08:30 (GMT).

Earlier in late September, the National Bank of Switzerland kept its negative interest rates unchanged: the deposit rate was at the level of -0.75%, the range for the 3-month LIBOR rate was between -1.25% and -0.25%. “The bank still considers a negative interest rate necessary and is ready to intervene in the foreign exchange market if the situation requires it”, the NBS said. According to the management of the NBS, the cost of the Swiss franc is still high. It is likely that rates will remain unchanged for much of the next year, while weaker economic data has come from Switzerland. Thus, GDP in the 3rd quarter decreased by -0.2% instead of the expected growth of + 0.4% and against growth of + 0.7% in the 2nd quarter. Other macro data also indicate a slowdown in the economy.

At 09:00 (GMT) the press conference of the NBS will start. The harsh rhetoric of the speech by the head of the NBS Thomas Jordan, will help strengthen the franc. The soft tone of the speech and the tendency to continue the extra soft monetary policy of the NBS will negatively affect the franc.

*)An advanced fundamental analysis is available on the Tifia Forex Broker website at tifia.com/analytics

 

Support and Resistance Levels

The USD / CHF pair is trading at the beginning of the American session on Wednesday, near the strong short-term resistance level of 0.9960 (ЕМА200 on the 4-hour chart). Breakdown of this level will strengthen the upward trend prevailing above key support levels of 0.9875 (Fibonacci level 61.8% of the upward correction to the last global decline wave from December 2016 and from 1.0300), 0.9860 (ЕМА200 on the daily chart).

As long as USD / CHF is above these key support levels, a long-term uptrend persists and long positions are preferred.

An alternative decline scenario may develop after the breakdown of the support level of 0.9860 with the immediate goal at the support level of 0.9745 (ЕМА200 on the weekly chart and the Fibonacci level of 50%).

Support levels: 0.9935, 0.9915, 0.9875, 0.9860, 0.9745

Resistance Levels: 0.9960, 1.0010, 1.0060, 1.0110

 

Trading Scenarios

Buy Stop 0.9970. Stop Loss 0.9930. Take-Profit 1.0010, 1.0060, 1.0110

Sell ​​Stop 0.9930. Stop Loss 0.9970. Take-Profit 0.9915, 0.9875, 0.9860, 0.9745, 0.9610, 0.9575

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 *) For up-to-date and detailed analytics and news on the forex market visit Tifia Forex Broker website tifia.com

 

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EUR/USD: Market Expectations

12/13/2018

On Thursday, the focus of attention of participants in the financial market will be the ECB meeting. The bank is expected to leave rates at current levels at least until the end of the summer of 2019. It is also likely that the ECB will confirm the completion of the asset purchase program at the end of December.

The ECB rate decision will be published at 12:45 (GMT), and the ECB press conference will begin at 13:30. If Mario Draghi makes unexpected announcements, then the volatility in euro trading and the financial market will increase significantly. The harsh rhetoric of Mario Draghi on monetary policy prospects will strengthen the euro. Conversely, the soft tone of the ECB statement and the speech of Mario Draghi will have a downward pressure on the euro.

Meanwhile, the euro will remain under pressure against the dollar, which is supported by demand from investors amid expectations of further tightening of the Fed's monetary policy.

While EUR / USD is trading below the key resistance level of 1.1610 (ЕМА200 on the daily chart), short positions are preferable. The likelihood of further decline in EUR / USD remains. After the breakdown of the support level of 1.1362 (EMA200 on the 1-hour chart) EUR / USD will go to support levels of 1.1310 (December lows), 1.1290 (Fibonacci level of the 23.6% of the correction to the fall from the level of 1.3900, which began in May 2014), 1.1210 (November and year lows).

After EUR / USD rises to the zone above the resistance level of 1.1410 (ЕМА50 on the daily chart), further corrective growth is possible to the resistance level of 1.1610.

*)An advanced fundamental analysis is available on the Tifia Forex Broker website at tifia.com/analytics

 

Support Levels: 1.1362, 1.1310, 1.1290, 1.1210, 1.1000

Resistance Levels: 1.1385, 1.1410, 1.1470, 1.1610, 1.1700, 1.1790

 

Trading recommendations

Sell ​​Stop 1.1350. Stop-Loss 1.1420. Take-Profit 1.1310, 1.1290, 1.1210, 1.1000

Buy Stop 1.1420. Stop-Loss 1.1350. Take-Profit 1.1470, 1.1610, 1.1700, 1.1790

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*) For up-to-date and detailed analytics and news on the forex market visit Tifia Forex Broker website tifia.com

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EUR/USD: Eurodollar remains under pressure

Current dynamics

14/12/2018

The Eurodollar remains under pressure after the ECB meeting on Thursday.

His head, Mario Draghi, pointed to the risks of the Eurozone economy, which are shifting towards the deterioration of the situation. The ECB confirmed that it will complete the QE program in December. Interest rates will remain unchanged until the summer of 2019.

The euro remains under pressure from the worsening domestic political situation in France, the reluctance of the Italian government to more strongly curtail the planned budget deficit, as required by the European Commission, as well as Brexit and uncertainty due to the forthcoming elections to the European Parliament in May.

On Friday, the decline of the EUR / USD pair continued after the publication of disappointing macro data from the Eurozone. The EUR / USD pair fell from the opening of the trading day by 0.6% and at the beginning of the American session is trading near the 1.1286 mark, trying to break through the important support level of 1.1290 (Fibonacci level 23.6% of the correction to the fall from the level of 1.3900, which began in May 2014) .

Below the key resistance level of 1.1610 (ЕМА200 on the daily chart) negative dynamics prevail. Short positions with targets at support levels of 1.1210 (November and year lows), 1.1000 (bottom line of the downward channel on the daily chart) are still preferred.

The signal for the resumption of long positions will be the breakdown of the resistance level of 1.1400 (ЕМА50 and the upper line of the downward channel on the daily chart) with the target at the resistance level of 1.1610.

 

Support Levels: 1.1290, 1.1210, 1.1000

Resistance Levels: 1.1310, 1.1360, 1.1385, 1.1400, 1.1470, 1.1610, 1.1700, 1.1790

 

Trading recommendations

Sell ​​in the market. Stop-Loss 1.1410. Take-Profit 1.1210, 1.1000

Buy Stop 1.1410. Stop Loss 1.1280. Take-Profit 1.1470, 1.1610, 1.1700, 1.1790

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GBP/USD: Support and Resistance Levels

17/12/2018

After another sharp fall in mid-April since early May, GBP / USD continues to trade in a downward channel on a weekly chart, the lower limit of which passes near the support level of 1.1700. In the event of a breakdown of the nearest support level of 1.2600 (lows of June 2017), GBP / USD will head towards the support level of 1.2485 (minimums of the year). The main trend is still bearish. Below the key resistance levels of 1.3215 (Fibonacci level 23.6% of the correction to the decline of the GBP / USD pair in a wave that began in July 2014 near the level of 1.7200), 1.3095 (ЕМА200 on the daily chart) negative dynamics prevail. Short positions are preferred.

The signal for growth will be the breakdown of the short-term resistance level of 1.2642 (ЕМА200 on the 1-hour chart, ЕМА50 on the 4-hour chart). The immediate goal of growth is resistance levels of 1.2780 (ЕМА200 on the 4-hour chart), 1.2820 (ЕМА50 on the daily chart).

With favorable developments, corrective growth of GBP / USD may continue to resistance levels 1.3095 (ЕМА200 on the daily chart), 1.3215.

*)An advanced fundamental analysis is available on the Tifia Forex Broker website at tifia.com/analytics

 

  Support Levels: 1.2600, 1.2500, 1.2485, 1.2365, 1.2110, 1.2000

Resistance Levels: 1.2670, 1.2700, 1.2780, 1.2820, 1.2900, 1.3000, 1.3095, 1.3215

 

Trading Scenarios

Sell ​​in the market. Stop Loss 1.2650. Take-Profit 1.2500, 1.2485, 1.2365, 1.2110, 1.2000

Buy Stop 1.2680. Stop Loss 1.2580. Take-Profit 1.2700, 1.2780, 1.2820, 1.2900, 1.3000, 1.3095, 1.3215

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*) For up-to-date and detailed analytics and news on the forex market visit Tifia Forex Broker website tifia.com

 

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XAU/USD: Market expectations

18/12/2018

Against the background of monetary tightening by the Fed since April, gold prices have been in a steady downward trend. In mid-August, the XAU / USD pair reached an annual minimum near the mark of 1160.00, however, then an upward correction began, raising gold prices to the current mark of 1249.00 dollars per troy ounce. Nevertheless, the overall gold trend remains bearish, and the upward correction may end near the reached resistance levels of 1242.00 (ЕМА200 on the daily chart), 1248.00 (Fibonacci level 50% of the correction to the decline wave from July 2016), if the Fed will give clear signals to further tighten its monetary policy in 2019.

About 70% of market participants, according to the CME Group, believe that the rate will be increased in 2019 at least 2 more times. At the same time, the rate increase on December 19, at the last Fed meeting this year, by 0.25% to 2.5% is not in doubt.

The press conference of the Fed will begin on Wednesday 19:30 (GMT). Unambiguous signals from US Federal Reserve Chairman Jerome Powell, indicating a propensity to continue tightening monetary policy, will cause a rise in the dollar and a drop in gold prices. In the face of an increase in interest rates, gold is difficult to compete with other income-generating assets, such as government bonds, for example. At the same time, the cost of acquiring and storing gold is growing.

The breakdown of the support level of 1235.00 (EMA144 on the daily chart) will be the beginning of the return of XAU / USD to the bearish trend.

The soft rhetoric of statements by Fed officials could contribute to weakening the dollar and further rising gold and XAU / USD quotes towards resistance levels of 1260.00 (EMA200 on the weekly chart), 1277.00 (Fibonacci level 61.8%).

*)An advanced fundamental analysis is available on the Tifia Forex Broker website at tifia.com/analytics

 

Support Levels: 1242.00, 1235.00, 1220.00, 1212.00, 1204.00, 1197.00, 1185.00, 1160.00

Resistance Levels: 1248.00, 1260.00, 1277.00

 

Trading scenarios

Sell ​​Stop 1234.00. Stop Loss 1250.00. Take-Profit 1220.00, 1212.00, 1204.00, 1197.00, 1185.00, 1160.00

Buy Stop 1250.00. Stop Loss 1234.00. Take-Profit 1260.00, 1277.00

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*) For up-to-date and detailed analytics and news on the forex market visit Tifia Forex Broker website tifia.com

 

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EUR/USD: on the eve of the publication of the Fed rate decision

12/19/2018

It is widely expected that the Fed will raise the key interest rate by 0.25% to 2.5%. The probability of this is 72%, according to the CME FedWatch Tool. The decision of the Fed on the rate will be published at 19:00 (GMT). In November, Fed Chairman Jerome Powell said that the stakes are "slightly below" the neutral level, at which they neither restrain nor accelerate economic growth. It is likely that the accompanying Fed statement will state that in the future rates will increase depending on economic data.

The Fed’s press conference will begin at 19:30 (GMT), and investors will closely monitor Powell’s performance to catch signals from him regarding the Fed’s future plans.

If he talks about the pause in the boost cycle in 2019, the dollar will fall under sales.

US President Donald Trump does not cease to criticize the Fed for its monetary policy.

If Powell confirms the inclination of the Fed to tighten its policy next year, then the dollar will receive a positive impetus for further growth. The discrepancy in the monetary policy of the Federal Reserve System and the European Central Bank in 2019 will increase. Even if EUR / USD rises in the near future against the backdrop of a restrained Fed statement, in the medium term and probably in the long term, the Eurodollar will decline.

*)An advanced fundamental analysis is available on the Tifia Forex Broker website at tifia.com/analytics

 

Currently, EUR / USD is trading near a strong resistance level of 1.1400 (EMA50 on the daily chart). Below the key resistance level of 1.1595 (ЕМА200 on the daily chart), negative dynamics prevail. The signal for the resumption of the decline will be the breakdown of the short-term support level of 1.1355 (ЕМА200 on the 1-hour chart), and the targets for the decline will be the support levels of 1.1290 (Fibonacci level 23.6% of the correction to the fall from the level of 1.3900, which began in May 2014), 1.1270 (minimums December), 1.1210 (November and year lows), 1.1000 (bottom line of the downward channel on the daily chart).

In the alternative scenario and in case of breakdown of the local resistance level of 1.1470, corrective growth will be possible to the resistance level of 1.1595.

Support Levels: 1.1376, 1.1355, 1.1310, 1.1290, 1.1210, 1.1000

Resistance Levels: 1.1400, 1.1470, 1.1595, 1.1700, 1.1790

 

Trading scenarios

Sell ​​Stop 1.1370. Stop-Loss 1.1420. Take-Profit 1.1355, 1.1310, 1.1290, 1.1210, 1.1000

Buy Stop 1.1420. Stop-Loss 1.1370. Take-Profit 1.1470, 1.1600, 1.1700, 1.1790

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*) For up-to-date and detailed analytics and news on the forex market visit Tifia Forex Broker website tifia.com

 

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EUR/USD: has the Eurodollar growth stopped?

12/21/2018

Current situation

Stocks and the dollar continued to fall on Thursday after the Fed raised interest rates on Wednesday. The Fed leaders unanimously decided to raise the key rate to a range of 2.25% -2.5%. However, the central bank announced a possible slowdown in monetary tightening next year.

At a press conference, Fed Chairman Jerome Powell said that, according to central bank executives, next year the economy will be strong enough that rates could be raised twice. Earlier, the Fed planned 3 rate increases in 2019 and 2 more increases in 2020.

The US dollar declined significantly this week. On Thursday, the DXY dollar index, which tracks the US currency against a basket of 6 other major currencies, fell to an 8-week low, dropping to 95.73. At the beginning of the European session on Friday, futures for the DXY index traded higher (near the mark of 96.06), however, the pressure on the dollar persists.

US Treasury Secretary Stephen Mnuchin tried to reassure investors, saying that the reaction of markets to the results of the last Fed meeting was excessive. "I think we are clearly in a situation in which the market over-responded to the statements of the Fed", said Mnuchin. According to him, the central bank may not have to raise rates at all next year if inflation remains low.

However, investors' pessimism persists. The Fed continues to reduce its balance sheet and raise interest rates, but tensions remain in US political and trade relations with China.

Sales in stock markets led to a sharp strengthening of the yen and the euro, which are the funding currencies.

The Eurodollar strengthened since the beginning of the week, reaching a local maximum of 1.1485 on Thursday. However, on Friday the EUR / USD pair is falling. Investors take profits at the end of the week and close their positions ahead of the long weekend due to the celebration of Catholic Christmas early next week.

From the news today, attention should be paid to the publication (at 13:30 GMT) of a whole block of important macro data from the United States, including GDP data (final release), which are one of the key (along with labor market and inflation data) for the Fed in terms of its monetary policy. The forecast for the 3rd quarter of this year is +3.5% GDP growth. Despite the relative decline (in the previous quarter, GDP growth was + 4.2%), this is a strong indicator. If the data turns out to be worse than the forecast, the dollar and stock indices will react with a decrease.

It was the last full trading week this year. On Monday, markets in many countries will be closed. In full, trading will be restored only on Wednesday, and next Monday the world will celebrate the New Year.

*)An advanced fundamental analysis is available on the Tifia Forex Broker website at tifia.com/analytics

 

Support and Resistance Levels

EUR / USD rose sharply this week, despite the Fed raising interest rates. Sales in stock markets led to an increase in demand for the yen and the euro, as for funding currencies. On Thursday, the EUR / USD pair reached a 5-week high near the 1.1485 mark. However, growth expected by many investors to the first strong resistance level of 1.1545 (ЕМА144 on the daily chart) did not take place, and on Friday EUR / USD is falling. A decline below the support level of 1.1400 (EMA50 on the daily chart) and inside the downward channel on the daily chart will indicate return of EUR / USD to the global bearish trend, and a breakdown of the short-term support level of 1.1384 (EMA200 on the 1-hour and 4-hour charts) will be a signal for opening short positions. The targets for further decline are support levels of 1.1290 (Fibonacci 23.6% correction to a fall from 1.3900, which began in May 2014), 1.1270 (December lows), 1.1210 (November and year lows), 1.1000 (bottom line of the downward channel on the day chart).

In the case of the resumption of growth and breakdown of the local resistance level of 1.1485, corrective growth will be possible to the resistance level of 1.1595 (ЕМА200 on the daily chart). Below this key resistance level of 1.1595 negative dynamics prevails.

  Support Levels: 1.1400, 1.1384, 1.1310, 1.1290, 1.1270, 1.1210, 1.1000

Resistance Levels: 1.1470, 1.1485, 1.1545, 1.1595, 1.1700, 1.1790

 

Trading Scenarios

Sell ​​in the market. Stop-Loss 1.1490. Take-Profit 1. 1.1400, 1.1384, 1.1310, 1.1290, 1.1270, 1.1210, 1.1000

Buy Stop 1.1490. Stop-Loss 1.1390. Take-Profit 1.1545, 1.1600, 1.1700, 1.1790

211218-EU-D.png

211218-EU-H1.png

 *) For up-to-date and detailed analytics and news on the forex market visit Tifia Forex Broker website tifia.com

 

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S&P500: The threat of a nearly 10-year bull trend breaking down is high

12/27/2018

Current situation

On Wednesday, US stock indexes showed a sharp increase after falling for 4 consecutive sessions before.

DJIA rose 1086 points, or 5%, to 22878 points, which in percentage terms was the most significant one-day increase since March 2009. S&P500 added 5%, while the Nasdaq Composite rose 5.8%.

On Tuesday, US financial markets were closed due to the celebration of Catholic Christmas, while most European markets on Wednesday were still closed due to Boxing Day. On Monday, the DJIA and S&P500 fell by 2.5%, and on Wednesday the DJIA declined at the opening of the trading day to around 21620, losing more than 1,800 points in four sessions. At the opening of the trading day on Wednesday, futures on the S&P500 stood at 2333.0, however, it increased during the day, closing the trading day on Wednesday at 2467.0.

Financial markets continue to be feverish at the end of the year. Investors were nervous about the rising interest rates of the Federal Reserve and the US-China trade conflict. Also on the dynamics of stock markets and the dollar in recent days reflected the continuing criticism of the Fed and its head Powell by US President Donald Trump, as well as the uncertainty associated with the closure of the US government.

On Wednesday, Kevin Hasset, Chairman of the Council of Economic Advisers at the White House, said there was no likelihood of the dismissal of Fed Chairman Jerome Powell, despite criticism of the central bank by President Donald Trump. The recovery of stock market quotes and the dollar on Wednesday also was helped by the positive macro data, according to which, retail sales in the US excluding cars for the period from November 1 to December 24 increased by 5.1% compared with the same period of the previous year, which was the most significant increase in six years.

On Thursday, investors' pessimism returns to the markets. US stock indexes are falling. All 11 sectors of the S&P500 are moving towards ending the year with losses, for the first time since 2008. The threat of breaking a nearly 10-year bull trend is higher than ever before.

*)An advanced fundamental analysis is available on the Tifia Forex Broker website at tifia.com/analytics

 

Support and Resistance Levels

In October, the S&P500 rose to an absolute maximum near the 2938.0 mark. However, a sharp decline in the index began later. Having broken through the strong support levels of 2720.0 (ЕМА200 on the daily chart), 2677.0 (Fibonacci 23.6% of the correction to the growth since February 2016), the S&P500 reached a local minimum near 2333.0 on Wednesday. The last time near this mark S&P500 was in May 2017.

Negative dynamics and pessimism of investors still prevail. On Thursday, the S&P500 declined again after rising the previous day, trading at a key support level of 2433.0 (ЕМА200 on the weekly chart). Fixing below the support level of 2380.0 (Fibonacci level 50%) and a further decline will speak about breaking the bullish trend of the S&P500.

Only after returning to the zone above the resistance level of 2720.0, it will be possible to talk about the resumption of the bull trend. In the current situation, short positions are preferred.

Support Levels: 2433.0, 2380.0, 2333.0, 2250.0, 2130.0

Resistance Levels: 2515.0, 2572.0, 2677.0, 2720.0, 2812.0, 2877.0, 2900.0, 2938.0

 

Trading Scenarios

Sell ​​Stop 2410.0. Stop Loss 2490.0. Goals 2380.0, 2333.0, 2250.0, 2130.0

Buy Stop 2490.0. Stop-Loss 2410.0. Goals 2515.0, 2572.0, 2677.0, 2720.0, 2812.0, 2877.0, 2900.0, 2938.0

271218-s500-D.png

271218-s500-W.png

 *) For up-to-date and detailed analytics and news on the forex market visit Tifia Forex Broker website tifia.com

 

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