Tifia Daily Market Analytics

[TifiaFX]

NZD / USD: monetary policy has not changed

10/08/2017

Current dynamics

As expected, the RBNZ kept the current interest rate in New Zealand at the same level of 1.75%. The RBNZ stated that against the backdrop of "many uncertainties," monetary policy "will remain soft in the foreseeable future," but "can be adjusted accordingly." For a stable recovery of the New Zealand economy and rising inflation of the value of traded goods, "a lower New Zealand dollar rate is needed."

In response to the publication of the decision on the rate of the pair, the New Zealand dollar / dollar briefly jumped to 0.7370 from 0.7340, but then declined during the Asian session, and at the beginning of the European session it was already trading near the 0.7270 mark.

Commodity currencies, including the New Zealand dollar, continue to decline in the foreign exchange market amid the continuing geopolitical tensions in the Asian region. The second day in a row, North Korea is threatening the United States. On Tuesday, the media reported that the North Korean army is "carefully studying" the operational plan for a missile strike on Guam. "The United States will be the first to experience the power of strategic weapons," the DPRK declared. US President Donald Trump demanded that North Korea "stop further threats" against the US, saying that the answer would be "the fire and the rage that the world has not seen so far." This time, North Korea threatened to "shell out from all sides" the territory of Guam in the coming weeks.

As a result of its 10-day decline, the pair NZD / USD completely leveled its July growth. According to economists, "the current rate is more appropriate to short-term fundamental factors" and "approached its average value over the past year."

As the geopolitical situation in the Asian region stabilizes, the New Zealand dollar will be able to maintain its position in the foreign exchange market due to rising commodity prices, also receiving support from long-term investors who prefer safe long-term investments. Preservation of the current interest rate at 1.75% in the long term will also contribute to this.

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


Support and resistance levels

The pair NZD / USD broke through an important short-term support level of 0.7350 (EMA200 on the 4-hour chart) and remains under pressure. Today, the NZD / USD pair has reached an important support level of 0.7285 (EMA200 on the weekly chart) and is developing a downward movement to the level of support

0.7240 (Fibonacci retracement level of 38.2% of the upward correction to the global wave of decline of the pair from the level of 0.8800, which began in July 2014, the low of December 2016).

Indicators OsMA and Stochastics on the 4-hour, daily, weekly charts went to the side of sellers, signaling a strong negative impulse.

While NZD / USD is trading above the support level of 0.7150 (EMA200 on the daily chart), the upward dynamics is maintained. In the case of breakdown at the level of 0.7150, a further decline to support levels of 0.6860 (Fibonacci level of 23.6% and a lower limit of the range located between the levels of 0.7550 and 0.6860) is possible. At the level of 0.6860 are also the minimums of December 2016 and May 2017. A break at the level of 0.6860 will mean the end of the upward correction, which began in September 2015, and a return to the downward trend.

The alternative scenario is to return to the zone above the level of 0.7350 and resume growth towards the annual maximum and the resistance level of 0.7550 (50% Fibonacci level). Meanwhile, it is too early to talk about long positions on the NZD / USD pair. Only a breakdown at 0.7550 would mean the end of the global bearish trend.

Support levels: 0.7240, 0.7150

Resistance levels: 0.7285, 0.7350, 0.7418, 0.7455, 0.7500, 0.7550



Trading Scenarios

Sell Stop 0.7250. Stop-Loss 0.7310. Take-Profit 0.7200, 0.7150

Buy Stop 0.7310. Stop-Loss 0.7250. Take-Profit 0.7418, 0.7455, 0.7500, 0.7550, 0.7600

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

 

[TifiaFX]

Brent: World oil supply grows

11/08/2017

Overview and dynamics

As reported today by the International Energy Agency (IEA), the world oil supply in July increased by 520,000 barrels a day, even despite the arrangements in OPEC. Growth in the supply of oil has been observed for 3 consecutive months. The supply of oil in the world increased in July to 98.16 million barrels per day, which is by 500,000 barrels per day more than in the same period last year. OPEC oil production in July increased by 230,000 barrels per day and reached 32.84 million barrels per day, the high of 2017. The increase in OPEC production of the cartel is primarily due to the increase in production in Libya and Nigeria, which are exempt from participation in the transaction.

The investors' skepticism about the effectiveness of OPEC measures is maintained due to poor compliance with the agreements on the reduction of oil production. All this imposes a negative imprint on the dynamics of oil prices.

Prices fell on Thursday, despite the earlier data from the US Energy Ministry on oil reserves in the US (Wednesday 14:30 GMT). According to the report of the Energy Information Administration (EIA) of the United States, US oil inventories fell 6.451 million barrels last week, which was the sixth consecutive week.

Today we are waiting for the publication at 17:00 (GMT) of the report of the oilfield service company Baker Hughes on the number of active drilling platforms in the US, which is an important indicator of the activity of the oil sector of the US economy and significantly affects the quotes of oil prices.

The US successfully used the situation with a rise in prices against OPEC actions last year and increased production by 750,000 barrels a day to 9.3 million barrels per day, the highest since summer 2015. In fact, by the efforts of the US alone, more than a third of the reduced production was offset.

At the moment, there are 765 active drilling rigs in the USA. If the number of installations increases again, this will negatively affect oil prices.

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


Support and resistance levels

The price of Brent crude oil was unable to develop an upward trend above the resistance level of 52.90 (EMA144 on the weekly chart) on Thursday and the second day is going down.

While the price is below the short-term resistance level of 51.85 (EMA200 on the 1-hour chart), the downside dynamics will increase, and the downside correction target will be the support level of 50.70 (EMA200, EMA144 on the daily chart, EMA50 on the weekly chart, as well as Fibonacci 61, 8% correction to the decline from the level of 65.30 from June 2015 to the absolute minimums of 2016 near the mark of 27.00).

Indicators OsMA and Stochastics on the 4-hour, daily charts went to the side of sellers.

If the price breaks through the key support level of 50.70, then the decline will accelerate, risking again moving into a bearish trend. The targets then will be support levels 49.70, 48.75, 48.00, 46.20 (50% Fibonacci level), 44.50 (lows of the year). The more distant goal is the level 41.70 (the Fibonacci level of 38.2% and the lower boundary of the descending channel on the weekly chart).

The scenario for growth implies breakdown of the resistance level of 52.90 and an increase to the resistance level of 54.75 (EMA200 on the weekly chart and May highs). The signal to growth will be the fixing of the price above the level of 51.85.

Support levels: 51.00, 50.70, 50.00, 49.70, 48.75, 48.00, 47.70, 46.20, 45.50, 44.50, 41.70

Resistance levels: 51.85, 52.90, 54.00, 54.75



Trading Scenarios

Sell Stop 51.10. Stop-Loss 52.10. Take-Profit 50.70, 50.00, 49.70, 48.75, 48.00, 46.20, 44.50

Buy Stop 52.10. Stop-Loss 51.10. Take-Profit 52.90, 54.00, 54.75

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

 

[TifiaFX]

XAU/USD: the dollar regains positions

14/08/2017

Current dynamics

Friday's weak inflation data in the US, as well as an escalation in tensions between the US and North Korea, caused the dollar to fall on Friday and the demand for safe haven assets was growing.

As reported by the US Labor Department, in July, consumer prices rose by 0.1% (the forecast was + 0.2%). The index pointed to a worsening of the outlook for price growth in the US, which weakened expectations of an increase in interest rates by the Fed this year.

At the same time, US President Donald Trump said on Thursday that his previously voiced threats to reply North Korea with "fire and fury" apparently sounded "not tough enough." And on Saturday Donald Trump said that the United States is ready to strike North Korea, if it does not stop threatening the United States.

As a result, on Friday, demand for gold continued to remain at high levels.

On Friday, the president of the Federal Reserve Bank of Dallas, Robert Kaplan, said that the current level of interest rates is acceptable. Another Fed spokesman, the president of the Federal Reserve Bank of Minneapolis, Neil Kashkari, said that the Fed should wait with higher rates until inflation approaches the target of 2%. "We still can not reach the target level of inflation, and the growth of wages remains slow," Kashkari said.

Now investors expect a rate hike in December with a probability of 38% (on Friday the probability was estimated at 47%), according to the CME Group.

Gold, as you know, does not bring interest income. But it is growing in price in periods of low interest rates and political or economic instability in the world.

So far, the demand for it is supported, mainly against the backdrop of domestic political instability in the United States and the tension in relations with the DPRK. As the geopolitical tensions decrease, investors' attention will again shift to economic indicators.

Still, the risk of an increase in the US interest rate in December, despite the low level of inflation, exists. Strong labor market in the US indicates a stable state of the economy in the country.

Tomorrow, investors will focus on the publication of inflation indicators for the United States. At 12:30 (GMT) are published retail sales indices for July, which are a leading indicator, and indices of export-import prices. Forecast: retail sales increased by 0.3% (against -0.2% in June), which should support the dollar quotes.

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


Support and resistance levels

With the opening of today's trading day, the dollar is recovering its positions in the foreign exchange market, and gold is getting cheaper.

Indicators OsMA and Stochastics on the 1-hour, 4-hour charts of the pair XAU / USD turned to short positions.

Probably further decline to support levels 1277.00 (Fibonacci level 61.8% correction to the wave of decline since July 2016), 1273.00 (EMA200 on the 1-hour chart).

In the case of breakdown of these levels and the development of a downward correction, it is likely that the support level of 1260.00 (the bottom line of the uplink and EMA200 on the 4-hour chart) will decrease to the support level.

The breakdown of support levels 1248.00 (Fibonacci 50.0%), 1244.00 (EMA200 on the daily chart) will provoke further decline of the pair XAU / USD and its return to the downtrend.

The alternative scenario is connected with the breakdown of the resistance level of 1295.00 (the highs of June and the year and the upper line of the range located between the levels of 1185.00 and 1295.00) and further growth.

So far, against the background of the dollar's recovery, the downward short-term dynamics is dominating.

Support levels: 1277.00, 1273.00, 1260.00, 1248.00, 1244.00, 1229.00, 1220.00, 1205.00, 1185.00

Levels of resistance: 1295.00



Trading scenarios

Sell in the market. Stop-Loss 1285.00. Take-Profit 1277.00, 1273.00, 1260.00, 1248.00, 1244.00

Buy Stop 1285.00. Stop-Loss 1279.00. Take-Profit 1290.00, 1295.00

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

 

[TifiaFX]

GBP/USD: producer price growth slowed

15/08/2017

Current dynamics

The consumer price index (CPI) of the UK in July compared with July last year increased by 2.6% (the forecast was + 2.7%). Thus, according to the data presented today, in July the annual rate of consumer inflation did not change with respect to June. But the annual growth rate of purchasing prices of producers in July slowed sharply - to 6.5% from 10% in June.

As a result of the sharp weakening of the pound after the referendum on Brexit in May, consumer price inflation accelerated to a maximum of 2.9% in mid-2013. Against the background of the weakening of the pound, the purchasing power of the British sharply decreased, which sharply limited their spending.

Retail sales are one of the main "fillers" of British GDP. The slowdown in inflation favorably influences the British economy, which is oriented primarily toward the domestic market. Improving the situation in the service sector for consumers, which has recovered due to strong retail sales, contributes to GDP growth in the UK. So, according to official data released last Wednesday, in the second quarter, the British economy grew by 0.3% after rising 0.2% in the 1st quarter.

The pound declined after the publication of today's data on inflation, but the British stock index FTSE rose, indicating the favorable impact of slowing inflation on the growth of the British economy. Yet the main risk for the UK economy remains Brexit.

For today (at 12:30 GMT) it is planned to publish important data from the US - inflation indicators for July (retail sales), as well as import-export price indices.

High level of retail sales will strengthen the US dollar. Forecast: + 0.4% (against -0.2% in June).

The weak values of the indicators will put pressure on the dollar, which is now recovering in the foreign exchange market after it became known that the DPRK leader Kim Jong-un decided not to attack Guam after consulting with the military command. This was also facilitated by China's decision to support the sanctions against Pyongyang imposed by the United States.

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


Support and resistance levels

The pair GBP / USD broke through the important short-term support levels of 1.3000 (EMA200 on the 4-hour chart), 1.2960 (EMA50 on the daily chart, the bottom line of the uplink on the 4-hour chart) and is rapidly declining to the key support level 1.2860 (EMA200 on the daily chart).

Break of this level will speak about the completion of the upward correction and will strengthen the risks of GBP / USD returning to a downtrend.

The alternative scenario is connected with the return of GBP / USD to the zone above the level of 1.3000 and the resumption of growth. The closest target in this case will be resistance level 1.3210 (Fibonacci level 23.6% correction to the decline of the GBP / USD pair in the wave, which began in July 2014 near the level of 1.7200). Levels of 1.3300 (the upper limit of the channel on the weekly chart), 1.3460 (July and September highs) will be the next target.

So far, the downward trend is dominating, as evidenced by the indicators OsMA and Stochastics, which on the 1-hour, 4-hour, daily and weekly charts turned to short positions.

Support levels: 1.2860, 1.2800

Resistance levels: 1.2960, 1.3000, 1.3100, 1.3210, 1.3300, 1.3400, 1.3460



Trading Scenarios

Sell Stop 1.2850. Stop-Loss 1.2910. Take-Profit 1.2815, 1.2765, 1.2700, 1.2640, 1.2590, 1.2550, 1.2365

Buy Stop 1.2910. Stop-Loss 1.2850. Take-Profit 1.2960, 1.3000, 1.3100, 1.3210, 1.3300, 1.3400, 1.3460

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

 

[TifiaFX]

XAG / USD: demand for precious metals declined

16/08/2017



Current dynamics

After the tension in relations between North Korea and the United States declined and against the background of positive data on retail sales received from the US, the dollar regains its positions in the foreign exchange market, and the demand for safe haven assets, including precious metals, is declining.

A few hours after China supported sanctions against Pyongyang imposed by the United States, North Korea refused to threaten to attack the United States.

As reported yesterday by the US Department of Commerce, July data on retail sales exceeded expectations, an increase of 0.6% against the forecast (0.4%). Data on retail sales supported the further strengthening of the dollar and encouraged the buyers of the dollar, putting on its further growth.

Today, the focus of traders will be the publication (18:00 GMT) of the protocol from the July Fed meeting to understand the prospects for monetary policy in the US.

In recent weeks, Fed officials have talked about the weakness of inflation and uncertainty in fiscal policy. Published on Friday, inflation data increased fears that the price dynamics did not meet the expectations of the Fed. The consumer price index (CPI) in July rose by 0.1% compared to June, and by 1.7% compared to July of the previous year (the target level of annual inflation established by the Federal Reserve is 2%).

The protocols, apparently, will also contain information on the continuation of the discussion on inflation, which remains weak and, in the opinion of some leaders of the Fed, may become a hindrance to further tightening of monetary policy in the US.

This year, the Fed will hold three more meetings devoted to monetary policy: September 19 - 20, October 31 - November 1, and December 12 - 13. After the September and December meetings, the Fed will publish its new economic forecasts, while Fed Chairman Janet Yellen will hold a press conference.

According to the CME Group, investors are taking into account the 53% chance of raising the Fed's interest rates in the price this year. Before the release of data on retail sales, they estimated such a probability of 37%.

As is known, in the conditions of increase in the rate the price for precious metals, including silver, falls, as the cost of its acquisition and storage is growing.

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


Support and resistance levels

The pair XAG / USD was unable to develop an uptrend above the resistance level of 17.22 (August highs and the top line of the descending channel on the daily chart). Having broken the key level 17.00 (EMA200 on the daily chart), XAG / USD is falling deeper into the descending channel on the daily chart.

At the moment, XAG / USD is trading at the support level of 16.58 (EMA200, EMA144 on the 4-hour chart). A break of this level will signal the continuation of the downward movement.

While XAG / USD is below the level of 17.00, the downside dynamics prevails.

In case of breakdown of the local support level of 16.12 (August lows), the pair XAG / USD will go into the downward channel on the daily chart towards its lower boundary with the targets of 15.60, 14.90, 14.30 (July lows), 13.65 (minimum of the global wave of the pair XAG / USD decline September 2012).

Support levels: 16.58, 16.45, 16.12, 15.60, 15.25, 14.90, 14.30, 13.65

Levels of resistance: 16.80, 17.00, 17.22



Trading scenarios

Sell Stop 16.55. Stop-Loss 16.70. Take-Profit 16.45, 16.38, 16.12, 15.60, 15.25, 14.90, 14.30

Buy Stop 16.70. Stop-Loss 16.55. Take-Profit 16.80, 17.00, 17.22

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

 

[TifiaFX]

GBP/USD: revenue growth lags behind inflation

17/08/2017

Current dynamics



As follows from yesterday's July minutes of the Fed meeting, there is no consensus among US central bank executives about further interest rate hikes. Slowing inflation forced some Fed officials to propose to refrain from further raising rates. "In the current conditions, the Fed can show patience", the protocols say. Earlier, the Fed planned to raise rates three times this year, but the protocols published on Wednesday make it doubtful.

After the publication of the minutes, the dollar fell sharply in the foreign exchange market. The index of the US dollar, WSJ, estimating the value of the dollar against 16 other major world currencies, fell by 0.4%, to 86.33.

Nevertheless, today the dollar is recovering its positions during the European trading session. This applies to the pair GBP / USD, which is declining after the publication of data on retail sales in the UK for July. According to the National Bureau of Statistics (ONS), presented today at the beginning of the European session, retail sales growth in the UK in July was modest (+ 0.3% vs. +0.2 forecast). The estimation of sales growth for June was reduced to 0.3% from 0.6%. In annual terms, growth was also modest (+ 1.3% vs. + 1.4%, according to the forecast).

The British economy, largely dependent on domestic consumption, grew by just 0.3% in the second quarter (+ 0.2% in the first quarter).

According to data published earlier this week, real British salaries in June declined for the fourth consecutive month. Because of the sharp increase in inflation against the backdrop of a sharp weakening of the pound after the referendum on Brexit, the real income growth of the British lags behind inflation, which is confirmed by the almost zero increase in personal expenses of the British and the level of retail sales.

Sales in all categories, except for food and household goods, in comparison with the previous month decreased.

In July, inflation was 2.6% against a nearly four-year high of 2.9% in May, well above the Bank of England's target of 2%.

We are waiting for the data from the USA today. At 12:30 (GMT), the US Department of Labor will publish a weekly report on the number of initial applications for unemployment benefits. The forecast is expected to decline to 240,000 versus 244,000 for the previous period, which should positively affect the dollar. If the data is confirmed or better, the dollar will receive additional support.

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


Support and resistance levels

Since the beginning of August, the GBP / USD pair is actively declining. On the daily chart, GBP / USD fell back to the key support level of 1.2860 (EMA200). Downward dynamics prevails. Breakdown of this level will strengthen the risk of GBP / USD returning to a downtrend.

Indicators OsMA and Stochastic daily, weekly, monthly charts were deployed to short positions.

An alternative scenario relates to the return of GBP / USD to the zone above the level of 1.2980 (EMA200 on 1-hour and 4-hour charts) and the resumption of growth. The closest target in this case will be the resistance level 1.3210 (Fibonacci level 23.6% correction to the decline in the GBP / USD pair in the wave, which began in July 2014 near the level of 1.7200). Levels of 1.3300 (the upper limit of the channel on the weekly chart), 1.3460 (July and September highs) will be the next growth target.

Support levels: 1.2860, 1.2800

Resistance levels: 1.2980, 1.3000, 1.3100, 1.3210, 1.3300, 1.3400, 1.3460



Trading scenarios

Sell Stop 1.2850. Stop-Loss 1.2910. Take-Profit 1.2815, 1.2765, 1.2700, 1.2640, 1.2590, 1.2550, 1.2365

Buy Stop 1.2910. Stop-Loss 1.2850. Take-Profit 1.2960, 1.3000, 1.3100, 1.3210, 1.3300, 1.3400, 1.3460

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

 

[TifiaFX]

EUR/USD: The ECB is concerned about the strengthening of the euro

18/08/2017

Current dynamics

Despite the decline in the dollar, the pair EUR / USD remains under pressure (so far in the short term). Published on Thursday, the minutes of the July meeting of the ECB pointed out that the central bank is concerned about the strengthening of the single European currency this year.

"There were fears about the risk of excessive growth of the euro in the future", - so it was said in the minutes.

The strengthening of the Euro-currency negatively affects the economy of the Eurozone, as it makes European goods less competitive abroad. Weak rates of inflation in the Eurozone also contribute to the ECB's prolonging the stimulus program for the Eurozone economy for at least six months.

As you know, the program QE in the Eurozone ends in December. Despite the fact that the Eurozone economy shows signs of stable growth, which is also due to the ECB, which pursues an extra soft monetary policy, inflation is still far below the target level of the ECB just below 2.0%.

At the same time, the dollar also remains under pressure after the minutes published on Wednesday from the July Fed meeting. Investors continue to assess the prospects for an increase in the Federal Reserve's key interest rate in December with a probability of below 40%.

The leadership of the US central bank still can not unanimously decide to raise rates in conditions of slow inflation. And this is a negative factor for the dollar.

Thus, the EUR / USD pair is currently in the grip of the need to maintain a low interest rate in the Eurozone and the Fed's hesitancy in the matter of monetary policy, which makes both currencies vulnerable from this point of view.

The US dollar, meanwhile, declined during the Asian session and at the beginning of the European session.

If we consider that today is the last trading day of the week, then in the second half of the US session, we should expect some strengthening of the US currency against the background of closing short positions on the dollar and fixing profits.

The news background is calm today. Volatility may intensify at the beginning of the US trading session, when at 12:30 (GMT) the consumer price index (CPI) in Canada (for July) is published.

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


Support and resistance levels

The pair EUR / USD is in a downward correction short-term trend since the beginning of August, when strong data was published from the US labor market.

Repeated attempts to test the support level 1.1690 (EMA144 on the 4-hour chart) have not yet led to its breakdown.

If the EUR / USD decline continues, the breakdown of the support level 1.1630 (EMA200 on 4-hour and weekly charts) will strengthen the risks of a return to the downtrend.

However, only in case of breakdown of the support level 1.1150 (EMA200 on the daily chart) will EUR/USD return to a downtrend.

Indicators OsMA and Stochastics do not give a clear signal.

In the alternative scenario and after the breakdown of the local resistance level 1.1780 (the Fibonacci retracement level of 38.2% of the corrective growth from the lows reached in February 2015 in the last wave of the global decline from 1.3900), the EUR / USD is likely to strengthen further. The growth targets will be the levels of 1.1835, 1.1890 (the highs of the year), 1.1950, 1.2050, 1.2180 (50% Fibonacci level).

Support levels: 1.1690, 1.1630

Resistance levels: 1.1780, 1.1835, 1.1890, 1.1910, 1.1950, 1.2050, 1.2180



Trading Scenarios

Sell in the market. Stop-Loss 1.1785. Take-Profit 1.1690, 1.1630, 1.1600, 1.1550

Buy Stop 1.1785. Stop-Loss 1.1710. Take-Profit 1.1835, 1.1890, 1.2000, 1.2050, 1.2100, 1.2180

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

 

[TifiaFX]

DJIA: the decline continues

21/08/2017

Current dynamics

After Thursday, Wal-Mart Stores and Cisco Systems reported on the results, their shares fell significantly, pulling the Dow Jones Industrial Average, which dropped 1.2% (274 points) to 21751 points. This was the most significant decline since May 2017. The shares of all 30 companies, traded in DJIA, and all 11 main sectors in the S & P500 index fell.

A portion of the disappointing financial statements of companies, which include large retailers and giants of the technology sector, as well as the terrorist attack in Spain, provoked the strongest intraday drop in the major US stock indices, which was the second this month.

On Monday, there is a continued decline in major US stock indexes, including DJIA. Investors' attention this week will be focused on comments by representatives of world central banks, including Fed Chairman Janet Yellen and ECB President Mario Draghi.

In general, the negative mood of investors, the tendency to exit from risky assets and the withdrawal of funds into safe assets prevail. Thus, the yield of 10-year US bonds rose to 2.202% from 2.196%, gold quotes also remain propped up after last Friday the price of gold exceeded the annual maximum and the mark of 1300.00 dollars per ounce for a short time.

If today the decline in indices continues, it will be the third consecutive week of falling indices. The news background today for the US stock market, in general, is neutral.

Low trading volumes and investor caution on the eve of the Jackson Hole conference increase the likelihood of a short-term spike in volatility and a return of the price to the current range.

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


Support and resistance levels

Having broken through the important short-term support levels 21825.0 (EMA144 on the 4-hour chart), 21755.0 (EMA200), DJIA found today support at the level of 21650.0 (EMA50 on the daily chart).

The predominant negative short-term dynamics. Indicators OsMA and Stochastics on the 4-hour, daily, weekly charts went to the side of sellers.

Probably the continuation of the correction decrease to the level of support 21500.0 (the bottom line of the ascending channel on the daily chart).

In case of resumption of growth and consolidation above the level of 21825.0 (EMA144 on the 4-hour chart), the DJIA will move towards the recent absolute maximum near the level of 22177.0.

If the decline continues, then after the breakdown of the support level of 21500.0, the target may be the support level of 20630.0 (Fibonacci level of 23.6% correction to the wave growth from the level of 15660.0 after recovery in February of this year to the collapse of the markets since the beginning of the year.The maximum of this wave and the level Fibonacci 0% is near the mark of 22000.0). Through the level 20630.0 also passes EMA200 on the daily chart. This level, therefore, is key to the bullish trend of DJIA.

Support levels: 21710.0, 21650.0, 21500.0, 21300.0, 21000.0, 20630.0

Resistance levels: 21770.0, 21840.0, 21950.0, 22060.0, 22177.0, 22300.0



Trading Scenarios

Buy Stop 21785.0. Stop-Loss 21600.0. Take-Profit 21825.0, 21950.0, 22060.0, 22177.0, 22300.0

Sell Stop 21600.0. Stop-Loss 21785.0. Take-Profit 21500.0, 21300.0, 21000.0, 20630.0

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

 

[TifiaFX]

USD/CAD: the US dollar is recovering

22/08/2017

Current dynamics

During today's Asian session and at the beginning of the European session, the US dollar is restoring its positions in the foreign exchange market. In recent days, both domestic political uncertainty in the US, as well as ambiguous US economic indicators, have reduced the hopes of investors who are betting on the growth of the dollar that the Federal Reserve will implement the third rate hike this year. According to interest rate futures, on Monday, market participants assessed the likelihood of further increases in US Fed rates this year at 40% versus 43% last month.

From 24 to 26 August in Jackson Hole (USA) will host an annual economic conference, organized by the Fed, which will address the heads of the world's largest central banks. In the center of attention – is the speech of the head of the US Federal Reserve, Janet Yellen. She is expected to point out how the management of the central bank assesses the situation in the country's economy, and what are the prospects for further tightening of monetary policy in the US. If she makes any hints about the possibility of another interest rate hike by the end of the year, despite the low inflation in the US, the dollar will significantly strengthen in the foreign exchange market.

Meanwhile, the Canadian dollar on Monday rose slightly against the US dollar, which was down against the major currencies. The strengthening of the Canadian currency was also due to the reduction in the difference in the yields of government bonds of Canada and the United States.

Today, the US dollar is growing, restoring positions, which is also reflected in the growth of USD / CAD. Today its dynamics can be affected by the publication (at 12:30 GMT) of data on retail sales in Canada for June.

The index is published monthly by Statistics Canada and estimates the total amount of retail sales. This index is often considered an indicator of consumer confidence and reflects the state of the retail sector in the short term. The growth of the index is usually a positive factor for CAD, the decline in the index will negatively affect CAD.

A slight, almost zero, growth is expected (+ 0.3% vs. + 0.6% in May). If the data is even weaker, the Canadian dollar will fall in the foreign exchange market, including the USD / CAD pair.

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


Support and resistance levels

Late last month, the pair USD / CAD reached its next annual low near support level 1.2420 and returned to the range located between 1.2490 (EMA200) and 1.2740 (EMA144 on the weekly chart, Fibonacci level of 38.2% of the downward correction to the pair's growth in the global ascending Trend since September 2012 and the level of 0.9700). Near the level of 1.2740 also passes the top line of the descending channel on the daily chart and EMA200 on the 4-hour chart.

In case of consolidation above the level of 1.2635 (EMA200 on the 1-hour chart), the USD / CAD growth will resume with the target of 1.2740. A more distant goal is the level of 1.3120 (EMA50 on the weekly chart, EMA200 on the daily chart and the December lows).

The OsMA and Stochastic indicators on the 4-hour and weekly charts turned to long positions.

If the pair continues to decline, the USD / CAD will go to support level 1.2490 (EMA200 on the weekly chart).

The breakdown of support levels 1.2170 (50% Fibonacci level), 1.2030 (EMA200 on the monthly chart) will finally break the long-term bullish trend of the pair USD / CAD, which began in September 2012.

Support levels: 1.2565, 1.2490, 1.2420, 1.2170, 1.2030

Resistance levels: 1.2605, 1.2635, 1.2700, 1.2740, 1.2785, 1.2800, 1.2860, 1.2920, 1.3015, 1.3120, 1.3200


Trading Scenarios

Buy Stop 1.2610. Stop-Loss 1.2565. Take-Profit 1.2635, 1.2700, 1.2740, 1.2785, 1.2800, 1.2860, 1.2920 Sell Stop 1.2565. Stop-Loss 1.2610. Take-Profit 1.2500, 1.2400, 1.2170

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

 

[TifiaFX]

NZD/USD: New Zealand economic growth forecasts revised

23/08/2017

Current dynamics

According to a report published on Tuesday on economic and financial conditions in New Zealand, forecasts for the growth of the New Zealand economy were revised with a slight decrease.

Finance Minister Stephen Joyce said that in the next four years, the average growth rate of New Zealand's GDP could reach 3%, whereas earlier it was forecasted an average annual growth rate of 3.1%.

The New Zealand dollar is actively declining since the beginning of August. Over the past two days, the NZD / USD pair has declined by about 100 points or by 1.3%.

This is also promoted by the growth of quotations of the US dollar on the eve of the economic conference in Jackson Hole, which will be held on August 24-26. The conference will feature the heads of the world's leading central banks. From the chairman of the Fed, Janet Yellen is waiting for statements in favor of a third increase in interest rates in the US for the current year.

The dollar fell more than 7% this year, it will have a significant growth space if the Fed's rhetoric points to their tendency to tighten monetary and credit policy.

The growth of the US dollar is also facilitated by the fact that investors are less concerned about the tensions between the US and North Korea, as well as political uncertainty in Washington. Yesterday's comments by Paul Ryan, Speaker of the House of Representatives of the US Congress, and Mitch McConnell, leader of the republican majority in the Senate, that the tax reform and raising the public debt limit will be implemented without difficulty, also contribute to improving investor sentiment towards the US currency.

Today (22:45 GMT) important data on New Zealand's foreign trade balance are published. A slight increase in the balance deficit in July (-200 million New Zealand dollars) is expected, which should negatively affect the New Zealand dollar with the confirmation of the forecast. Any change in the state of the foreign trade balance of New Zealand will support the New Zealand currency.

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


Support and resistance levels

The pair NZD / USD broke through important short-term support levels of 0.7325 (EMA200 on the 4-hour chart), 0.7300 (EMA200 on the 1-hour chart) and currently trades at the support level of 0.7240 (Fibonacci level of 38.2% of the upward correction to the global fall wave Pair from the level of 0.8800, which began in July 2014, the minimums of December 2016).

Indicators OsMA and Stochastics on the 4-hour, daily, weekly charts went to the side of sellers, signaling a strong negative impulse.

While NZD / USD is trading above the support level of 0.7165 (EMA200 on the daily chart), the upward dynamics is maintained. In case of breakdown at the level of 0.7165, a further decline to support levels of 0.6860 (Fibonacci level of 23.6% and a lower limit of the range located between the levels of 0.7550 and 0.6860) is possible. At the level of 0.6860 are also the minimums of December 2016 and May 2017. A break at the level of 0.6860 will mean the end of the upward correction, which began in September 2015, and a return to the downward trend.

The alternative scenario involves a return to the zone above the level of 0.7325 and the resumption of growth towards the annual maximum and the resistance level of 0.7550 (50% Fibonacci level and the upper limit of the rising channel on the weekly chart). Meanwhile, it is too early to talk about long positions on the NZD / USD pair. Only a breakdown at 0.7550 would mean the end of the global bearish trend.

Support levels: 0.7240, 0.7165

Resistance levels: 0.7255, 0.7300, 0.7325, 0.7455, 0.7500, 0.7550



Trading scenarios

Sell Stop 0.7205. Stop-Loss 0.7255. Take-Profit 0.7165

Buy Stop 0.7255. Stop-Loss 0.7205. Take-Profit 0.7300, 0.7325, 0.7455, 0.7500, 0.7550

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

 

[TifiaFX]

Brent: prices stabilized in the range

24/08/2017

Current dynamics

On Thursday, oil prices showed a slight decrease, without leaving the range between the levels of 53.00, 51.00 dollars per barrel of Brent crude oil. A wider range is located between the levels of 53.40, 50.0 dollars per barrel, in which Brent crude is traded last month.

On Wednesday, the Energy Information Administration (EIA) of the US Energy Ministry reported a drop in commercial oil and gasoline reserves in the country. Thus, crude oil inventories fell by 3.3 million barrels (forecast was -3.375 million barrels), gasoline stocks fell by 1.2 million barrels last week (the forecast was 500,000 barrels). As a result, oil prices rose on Wednesday. Oil futures on the NYMEX closed up by 1.21% at $ 48.41 per barrel. The spot price for Brent crude at the end of yesterday's trading day was close to $ 52.20 per barrel, which is about $ 1.0 higher than the previous closing price.

Nevertheless, significant price increases are not observed, despite the risks of interruptions in the work of US refineries associated with the storm in the Gulf of Mexico, and the reduction in oil and oil products in the United States.

Prospects of growth in oil production in the US have a negative impact on oil prices. World oil supply in July, according to the International Energy Agency (IEA), rose by 520,000 barrels a day, even despite the arrangements in OPEC. Growth in the supply of oil has been observed for 3 consecutive months.

The activity of US oil companies is growing, significantly offsetting OPEC's efforts to reduce oil production and exports.

Today and tomorrow, investors will follow the speeches of the leaders of the Fed and the ECB at a conference in Jackson Hole on the plans of the central banks to tighten monetary policy. If Janet Yellen signals the markets about the possibility of another increase in the interest rate this year, the dollar will rise sharply in the foreign exchange market. Commodity prices, including oil, will come under pressure in this case.

On Friday at 5:00 pm (GMT), Baker Hughes, the oil service company, will publish a weekly report on the number of active drilling platforms in the US, which is an important indicator of the activity of the US oil sector and significantly affects the quotations of oil prices. If the number of installations increases again, this will also negatively affect oil prices.

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


Support and resistance levels

The price for Brent crude was in the range between levels of 53.40, 50.0 dollars per barrel in August. Despite today's decline, the price keeps positive dynamics above the key support levels of 50.70 (EMA50 on the weekly chart, as well as the Fibonacci level of 61.8% correction to the decline from the level of 65.30 from June 2015 to the absolute minimums of 2016 near the 27.00 mark), 50.90 (EMA200, EMA144 on the daily chart).

Indicators OsMA and Stochastics on the 4-hour, daily, weekly charts again moved to the side of buyers.

If the growth continues, the target will be 52.90 (EMA144 on the weekly chart), 53.40 (August highs), 54.70 (EMA200 on the weekly chart and the upper bound of the rising channel on the daily chart).

The scenario for the decline involves a breakdown at the level of 50.70. The targets then will be support levels of 50.00, 48.75, 48.00, 46.20 (50% Fibonacci level), 44.50 (lows of the year). A more distant target is the level 41.70 (the Fibonacci level of 38.2% and the lower border of the descending channel on the weekly chart), which increases the risks of price return in the bearish trend.

Support levels: 51.30, 50.90, 50.70, 50.00, 48.75, 48.00, 47.70, 46.20, 45.50, 44.50, 41.70

Resistance levels: 52.90, 53.40, 54.00, 54.70



Trading Scenarios

Sell by the market. Stop-Loss 52.35. Take-Profit 51.30, 50.90, 50.70, 50.00, 48.75, 48.00, 47.70, 46.20

Buy Stop 52.35. Stop-Loss 51.70. Take-Profit 52.90, 53.40, 54.00, 54.75

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

 

[TifiaFX]

EuroStoxx50: Stabilization before the speech of the head of the ECB

25/08/2017

Market participants took a wait-and-see approach on the eve of the Fed Chairman's statement (14:00 GMT) and the ECB head (19:00 GMT).

As follows from the minutes of the ECB meeting of July 20 published last week, the ECB's Governing Council is alarmed by the current strength of the euro. It is likely that the ECB will not rush to tighten the policy. Mario Draghi will try not to disturb the markets and is likely to favor the extension of the QE program and will be concerned about the high cost of the euro. In this case, the European indices will receive support and an incentive to resume growth.

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


Levels of support and resistance

Since May, when the EuroStoxx50 index reached its annual maximum near the 3680.0 mark, a downward correction began. The EuroStoxx50 index fell to support level 3440.0 (EMA144 on the daily chart and Fibonacci level of 23.6% of the downward correction to the wave of growth since July 2016 and from the level of 2675.0).

In case of breakdown of the level 3440.0, the EuroSTOXX50 index will go to the key support level of 3400.0 (EMA200 on the daily chart). Breakdown of this level increases the risks of further decline and breakdown of the bullish trend.

The reduction targets then can be support levels 3295.0 (Fibonacci level 38.2%), 3265.0 (EMA200, EMA144 on the weekly chart).

The negative dynamics prevails. The European stock indexes are significantly influenced by the expectation of an early curtailment of the QE program in the Eurozone, which ends in December. Preferred short positions, until the situation on this issue is clarified, and the QE program will not be extended.

Support levels: 3440.0, 3400.0, 3325.0, 3295.0, 3265.0

Resistance levels: 3482.0, 3500.0, 3590.0, 3610.0, 3680.0, 3700.0



Trading Scenarios

Sell Stop 3430.0. Stop-Loss 3480.0. Take-Profit 3390.0, 3325.0, 3295.0, 3265.0

Buy Stop 3480.0. Stop-Loss 3430.0. Take-Profit 3550.0, 3590.0, 3610.0, 3680.0, 3700.0

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

 

[TifiaFX]

NZD/USD: Janet Yellen did not mention the topic of raising rates

28/08/2017

Current dynamics

The head of the Fed, Janet Yellen, disappointed investors who were betting on the growth of the US dollar, after not speaking last Friday on the topic of monetary policy and not signaling a further increase in the rate.

The US dollar fell sharply on Friday, and 10-year US government bonds rose in price. Their yield on the basis of trading on Friday was 2.169% against 2.194% on Thursday. Gold futures on Friday in the US rose in price by 0.4%, to 1291 dollars per ounce.

Meanwhile, the New Zealand dollar became the leader of the decline last week after the New Zealand government lowered its forecast for economic growth for 2017-2018. Treasury Secretary Steven Joyce said that in the next four years, the average growth rate of New Zealand's GDP could reach 3%, whereas earlier it was forecasted an average annual growth rate of 3.1%.

The New Zealand dollar remains under pressure also on the eve of the forthcoming parliamentary elections in the country, scheduled for September 23. On September 27, the RBNZ regular meeting on monetary policy will be held.

In early August, RBNZ kept the current interest rate in New Zealand at the same level of 1.75%. The RBNZ stated that against the backdrop of "many uncertainties", monetary policy "will remain soft in the foreseeable future", but "can be adjusted accordingly". For a stable recovery of the New Zealand economy and rising inflation, "a lower New Zealand dollar rate is needed".

It is likely that the interest rate will remain at the current level of 1.75%, and in the RBNZ will once again confirm the bank's propensity to pursue a soft monetary policy, which will keep the pressure on the New Zealand currency.

For today, the economic calendar is empty. In the course of the American session, a correction is likely on the US dollar against its decline on Friday.

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


Technical analysis

In July, the pair NZD / USD reached a new annual high near the mark of 0.7550 (Fibonacci level of 50% and the upper limit of the rising channel on the weekly chart). However, the further growth of the pair stalled. In the future, as a result of the active decline, NZD / USD broke through the important support levels of 0.7300 (EMA200 on the weekly chart), 0.7240 (the Fibonacci level of 38.2% of the upward correction to the global wave of decline of the pair from the level of 0.8800, which began in July 2014, the low of December 2016) and decreased to the level of support 0.7190 (EMA144 on the daily chart).

The pressure on the New Zealand dollar and the NZD / USD pair persists.

Indicators OsMA and Stochastics on the daily, weekly charts went to the side of sellers.

It is likely that the decline will continue to levels 0.7190, 0.7165 (EMA200 on the daily chart).

In the case of breakdown at the level of 0.7165, a further decline to support levels of 0.6860 (Fibonacci level of 23.6% and a lower range between 0.7550 and 0.6860 levels) is possible. At the level of 0.6860 are also the minimums of December 2016 and May 2017. A break at the level of 0.6860 will mean the end of the upward correction, which began in September 2015, and a return to the downward trend.

The alternative scenario involves a return to the zone above the level of 0.7300 and a resumption of growth towards the annual maximum and the resistance level of 0.7550 (50% Fibonacci level and the upper limit of the uplink on the weekly chart).

Support levels: 0.7190, 0.7165

Resistance levels: 0.7300, 0.7320, 0.7455, 0.7500, 0.7550



Trading Scenarios

Sell Stop 0.7220. Stop-Loss 0.7260. Take-Profit 0.7190, 0.7165

Buy Stop 0.7260. Stop-Loss 0.7220. Take-Profit 0.7300, 0.7320, 0.7455, 0.7500, 0.7550

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

 

[TifiaFX]

Brent: amid the hurricane in the US

29/08/2017

Current dynamics

The dollar continues to decline actively in the foreign exchange market. Nevertheless, on oil prices denominated in dollars, so far this fact is reflected little. Much more impact on oil prices had a storm in the US in the Houston area, a hurricane, later a "tropical storm", Harvey. Hurricane caused damage to oil refineries located in this part of the US, leading to their closure. Nearly 30% of the country's oil refining facilities are located on the Texas coast. Also, several offshore oil and gas platforms in the Gulf of Mexico were closed, accounting for about 22% of offshore oil production in the Gulf. Their closure will negatively affect oil demand in the US, and will also affect world oil prices. According to experts of the oil market, the negative impact of the consequences of the storm can drag on for several weeks, because it will take time to restart the refinery. Even yesterday, futures for Brent crude on ICE Futures fell 1.3% to 51.74 dollars per barrel. Today, oil prices continued to decline. The spot price for Brent crude at the beginning of today's European session was close to $ 51.00 per barrel.

Wednesday (14:30 GMT) will publish weekly data of the Ministry of Energy on oil reserves in the US. Decrease in demand from the refinery will probably cause an increase in inventories, since oil produced earlier and domestically is not being processed.

This can cause pressure on oil prices. Also today, it is worth paying attention to the weekly published data at 20:30 (GMT) on oil reserves from the American Petroleum Institute, which largely correlates with official data from the US Energy Ministry.

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


Support and resistance levels

The price of Brent oil broke through the short-term support level of 51.65 (EMA50 on the 4-hour chart, EMA200 on the 1-hour chart) and found support today at 50.95 (EMA200 on the 4-hour chart, EMA144 on the daily chart, EMA50 on the weekly chart). Short-term negative dynamics prevails. In case of breakdown of the support levels of 50.95, 50.70 (EMA50 on the weekly chart, as well as the Fibonacci level of 61.8% of the correction to the decline from the level of 65.30 from June 2015 to the absolute minimums of 2016 near the 27.00 mark), the decline may last to the support level of 50.00 (lows August). Further objectives are support levels 48.75, 48.00, 46.20 (50% Fibonacci level), 44.50 (year lows). A more distant goal is the level 41.70 (the Fibonacci level of 38.2% and the lower boundary of the descending channel on the weekly chart), which increases the risks of price return in the bearish trend.

Indicators OsMA and Stochastics on the 4-hour, daily, weekly charts again moved to the side of sellers.

In case of resumption of growth and breakdown of resistance level 52.20, the target will be 52.90 (EMA144 on the weekly chart), 53.40 (August highs), 54.70 (EMA200 on the weekly chart and the upper bound of the rising channel on the daily chart).

Support levels: 50.95, 50.70, 50.00, 48.75, 48.00, 47.70, 46.20, 45.50, 44.50, 41.70

Levels of resistance: 51.65, 52.20, 52.90, 53.40, 54.00, 54.70



Trading Scenarios

Sell by the market. Stop-Loss 51.70. Take-Profit 50.90, 50.70, 50.00, 48.75, 48.00, 47.70, 46.20

Buy Stop 51.70. Stop-Loss 50.80. Take-Profit 52.00, 52.20, 52.90, 53.40, 54.00, 54.75

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

 

[TifiaFX]

EUR/USD: the dollar continues to weaken

30/08/2017

Current dynamics

The sharp increase in EUR / USD, observed from the beginning of the year and, especially, in recent days, is connected both with the weakening of the dollar and with the continuing purchases of the euro. Heads of the Fed and the ECB did not make any hints at the last conference in Jackson Hole about the timing of further interest rate hikes. Investors regarded this as the Fed's tendency to soft monetary policy and that the current euro rate is satisfied with the ECB leaders.

Since the beginning of this year, the trade-weighted index of the euro has increased by more than 7%. This was the best result for the currency since its inception in 1999.

The single European currency receives support and against the backdrop of strengthening the economy of the Eurozone, which is often mentioned by the head of the ECB Mario Draghi. Euro since the beginning of the year it has added more than 14% against the dollar. The pair EUR / USD has reached the maximum mark since January 2015.

In the minutes of the July meeting of the ECB, there were "concerns about the rise in value (euro) in the future". Nevertheless, many economists believe that the ECB will begin to wind down the bond purchase program in December this year. The ECB simply does not have assets to buy.

At the same time, the ECB is in a difficult situation, since inflation is below the target level of just under 2.0%. Still, the ECB is likely to have to roll back the stimulus even if the outlook for inflation worsens.

In view of this, it is likely that the euro will continue to grow. Much will depend also on the pace at which the ECB will begin to reduce purchases of assets.

Today we are waiting for the data from the USA. Starting at 12:15 (GMT) a number of important macroeconomic indicators will appear, including the report on employment from ADP for August, data on spending on personal consumption in the US for the second quarter, annual GDP for the second quarter. In this period, a surge in volatility is expected in trading in financial markets, including the EUR / USD pair, which should be taken into account when opening trade positions at this time.

The GDP is expected to grow by 2.7% (against + 2.6% in the first quarter). If the forecast is justified, the dollar will receive support. Meanwhile, the prospect of further weakening of the USD and the growth of the EUR / USD pair remains.

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


Support and resistance levels

Despite the current corrective decline, the pair EUR / USD keeps positive dynamics, trading in the uplink on the daily chart.

Yesterday EUR / USD set another 4-month record, reaching 1.2070 and returning to the levels of December 2014.

If the growth resumes, the targets will be the levels of 1.2050 (low of July 2012), 1.2070, 1.2180 (the Fibonacci level of 50% of the corrective growth from the minimums reached in February 2015 in the last wave of global decline from 1.3900), 1.2370 (EMA200 on the monthly chart).

You can return to consideration of short positions in case of EUR / USD return to support level 1.1780 (Fibonacci level 38.2%). The breakthrough of support level 1.1620 (EMA200 on the weekly chart) increases the risk of EUR / USD returning to a downward global trend.

Support levels: 1.1890, 1.1835, 1.1780, 1.1720, 1.1670, 1.1620

Resistance levels: 1.2050, 1.2070, 1.2100, 1.2180


Trading Scenarios

Sell Stop 1.1920. Stop-Loss 1.1985. Take-Profit 1.1890, 1.1835, 1.1780, 1.1720, 1.1670, 1.1620

Buy Stop 1.1985. Stop-Loss 1.1920. Take-Profit 1.2050, 1.2070, 1.2100, 1.2180

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

 

[TifiaFX]

S&P500: indexes rose against the backdrop of strong macro data

31/08/2017



Current dynamics

Strong macro data, received from the US at the beginning of today's US session, caused the growth of the main US stock indices. Nasdaq Composite climbed 18.00 points (0.30%), S & P500 rose 6.34 points (0.26%), DJIA started trading with an increase of 47.83 points (0.22%).

Personal incomes of Americans in July increased by 0.4% (the forecast was + 0.3%), personal expenses (indicator, estimating household costs) in July, adjusted for seasonal fluctuations, increased by 0.3% (forecast was +0, 4%). The increase in income raises the Americans' confidence in the government and economy.

Consumer spending accounts for the bulk of US GDP. Published on Thursday, the report showed that the annual growth in US GDP in the 2nd quarter of this year was 3%. Presented by the US Department of Commerce data indicate a positive momentum in the US economy in the second half of the year.

However, the price index for personal consumption expenditure (RFE), the Fed's preferred inflation indicator, rose 0.1% in July from the previous month after a lack of growth in June and a drop of 0.1% in May. Compared to the same period last year, the index grew by 1.4%, which is below the target level of the Fed, which is 2%.

Presented today by the US Department of Labor data indicate a steady increase in employment. Thus, the number of initial applications for unemployment benefits was 236,000 in the week of August 20-26. The number of primary applications has fluctuated historically in the past few years. They remain below 300,000 for 130 consecutive weeks, which is the longest period since 1970. As a percentage of labor, the indicator of layoffs is at the lowest level since the 1960s.

Secondary applications for unemployment benefits fell by 12,000 to 1.942 million. The consistently low level of applications for unemployment benefits is one of the signs of a strong labor market, which is approaching the state of maximum employment.

Against the backdrop of the data, US stock indexes rose. The growth of the indices continues, therefore, for the fourth trading session in a row, and for the seventh month in a row, which indicates the confidence of investors in the strength of the American economy.

At the same time, the weakness of inflationary pressures in the US economy makes it more difficult for the Federal Reserve to raise short-term interest rates before the end of the year.

Thus, the data presented today contribute to the further growth of the US stock market. It seems that the consequences of Hurricane Harvey, the geopolitical tensions associated with the terrorist attacks in Europe and the provocations with missile launches by North Korea are receding into the background. And, in general, the positive dynamics of the US stock market remains.

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


Support and resistance levels

Twice this month, pushing away from the support level of 2418.0 (the bottom line of the rising channel on the daily chart), the S & P500 index keeps positive dynamics and is traded in the uplink on the weekly chart. There is a possibility of further growth.

The alternative scenario will be connected with the breakdown of the short-term support level 2450.0 (EMA200 on the 4-hour chart) and the continuation of the decline with the targets 2405.0 (June-July low and the lower limit of the uplink on the weekly chart), 2390.0 (March highs).

The upward trend in the S & P500 index is maintained as long as it trades above the key support levels of 2365.0 (EMA200 on the daily chart), 2325.0 (Fibonacci level of 23.6% correction to growth since February 2016). About the reversal of the bullish trend is not yet talking.

Support levels: 2450.0, 2433.0, 2418.0, 2405.0, 2390.0, 2365.0, 2325.0

Resistance levels: 2473.0, 2481.0, 2489.0, 2500.0



Trading Scenarios

Sell Stop 2454.0. Stop-Loss 2474.0. Objectives 2450.0, 2433.0, 2418.0, 2405.0, 2390.0, 2365.0, 2325.0

Buy Stop 2474.0. Stop-Loss 2454.0. Objectives 2481.0, 2489.0, 2500.0

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

 

[TifiaFX]

DJIA: US stock indexes continue to grow

01/09/2017

Current dynamics

Major US stock indexes began the month with a slight increase. Investors are waiting for a monthly report on the US labor market, which will be published at 12:30 (GMT). This report is extremely important in assessing the prospects for the dollar and the US stock market, because it characterizes the stability of the US economy, the largest in the world. On Thursday, US stock indexes rose thanks to a series of positive macro data. According to a report published by the US Department of Commerce on Thursday, the costs and incomes of Americans grew quite rapidly in July.

The index of prices for personal consumption expenditure (PCE) increased by 1.4% compared to the same period of the previous year. The income of Americans in July rose by 0.4% compared to June, which was the strongest growth since February. Americans have a large amount of cash for the next few months ahead, which could have a positive impact on GDP growth.

Data from ADP for August, which characterize the level of employment in the private sector of the US economy, also came out better than the forecast, indicating that the labor market is approaching full employment.

And at the same time, the US economy has a controversial situation: the growth of consumer spending in combination with the fall in unemployment indicates a fairly rapid and stable economic growth. However, inflation still remains slow, below the target level of the Fed in 2%.

In the data block from the US labor market, investors are particularly interested in the wage growth indicator, which will be used to judge the prospects for monetary policy in the coming months. Although unemployment is low and job creation is stable, wages have been rising at a moderate pace for a long time.

In view of the low inflation of space, the Federal Reserve has little to raise rates.

According to futures on federal funds, which track the CME Group, investors estimate the probability of a rate hike by the end of December at 37%.

And yet, the overall state of the US economy is encouraging, prompting investors to buy high-yielding high-risk assets. This is evidenced by the multi-month bullish trend of the US stock market.

And, if today's publication of data from the US labor market is also positive, close to the forecast values, the US stock indexes will continue to grow.

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


Support and resistance levels

DJIA maintains positive dynamics and continues to grow in the uplink on the daily chart, striving for the level of 22177.0 (the highs of the year and August).

Long positions are relevant. Only in case of breakdown of the important support levels 21800.0 (EMA200 on the 4-hour chart), 21700.0 (EMA50 and the bottom line of the ascending channel on the daily chart), we can return to consideration of short positions on the DJIA.

Indicators OsMA and Stochastics on the 4-hour, daily charts are on the buyers side.

In case of breakdown of the support level 21700.0, the target of the decrease may be support levels 20750.0 (EMA200 on the daily chart), 20630.0 (Fibonacci level of 23.6% correction to the wave growth from the level of 15660.0 after recovery in February this year to the collapse of the markets since the beginning of the year. The maximum of this wave, and the Fibonacci level of 0%, is near the mark of 22177.0). Levels 20750.0, 20630.0, thus, are key to long-term bullish trend of DJIA.

Support levels: 21800.0, 21700.0, 21500.0, 21300.0, 21000.0, 20750.0, 20630.0

Resistance levels: 22060.0, 22177.0, 22300.0


Trading Scenarios

Buy Stop 22050.0. Stop-Loss 21950.0. Take-Profit 22177.0, 22300.0, 22350.0

Sell Stop 21950.0. Stop-Loss 22050.0. Take-Profit 21800.0, 21700.0, 21500.0, 21300.0, 21000.0, 20750.0

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

 

[TifiaFX]

GBP/USD: amid talks on Brexit

04/09/2017

Current dynamics

The GDP growth in the UK this year has significantly slowed. Economic growth in the 1st and 2nd quarters was half that of the last three months of 2016.

High inflation, exceeding the target level of the Bank of England, continues to reduce the disposable income of the British, which reduces domestic demand. The British economy, largely dependent on domestic consumption, grew by only 0.3% in the second quarter (+ 0.2% in the first quarter). In a situation of shrinking domestic demand, British companies will have to increase capital investment.

The decline in consumer spending and the slowdown in the UK economy, which are taking place against the background of Brexit, will help the Bank of England continue to adhere to extra soft monetary policy. As you know, last summer the Bank of England lowered the interest rate to a record level of 0.25%, the lowest for the last 300 years.

The slowdown in the UK economy, the protracted Brexit talks and the unclear prospects for the monetary policy of the UK central bank continue to have a negative impact on the pound quotes. It is likely that the pound will remain under pressure at the beginning of this week before the debate in parliament on Thursday.

On Friday (11:30 GMT + 3), the National Statistical Office of Great Britain will publish July data on industrial production and manufacturing in the manufacturing industry, which will allow us to assess the state of the British economy at the beginning of the third quarter. It is expected that the data will come with almost zero growth, which will also negatively affect the quotes of the pound.

Today, most of the US financial markets are closed due to the celebration of Labor Day. The low activity of traders and low trading volumes in the foreign exchange market are expected. The growth of volatility in the foreign exchange market will begin tomorrow, when during the Asian session (02:01 GMT + 3) the British Retail Consortium (BRC) will publish a report on retail sales for August, and at 07:30 (GMT + 3) the RBA will publish a decision on interest rate in Australia.

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


Support and resistance levels

Despite continued pressure on the pound, the pair GBP / USD remains positive, trading above support levels 1.2935 (EMA200 on the 4-hour chart, EMA50 on the daily chart), 1.2860 (EMA200 on the daily chart) in the uplink on the daily chart.

Breakdown of the local resistance level 1.2980 will create the prerequisites for the recovery of the mid-term upward correction trend. The closest target in this case will be the resistance level 1.3210 (Fibonacci level 23.6% correction to the decline in the GBP / USD pair in the wave, which began in July 2014 near the level of 1.7200). Levels of 1.3300 (the upper limit of the channel on the weekly chart), 1.3460 (July and September highs) will be the next growth target.

A fall below support level 1.2860 will strengthen the risk of GBP / USD returning to a downtrend.

Indicators OsMA and Stochastics on the 4-hour, daily, weekly, monthly charts were deployed to short positions.

Support levels: 1.2935, 1.2912, 1.2860, 1.2800

Resistance levels: 1.2980, 1.3000, 1.3100, 1.3210, 1.3300, 1.3400, 1.3460



Trading Scenarios

Sell Stop 1.2910. Stop-Loss 1.2990. Take-Profit 1.2860, 1.2765, 1.2700, 1.2640, 1.2590, 1.2550, 1.2365

Buy Stop 1.2990. Stop-Loss 1.2910. Take-Profit 1.3050, 1.3100, 1.3210, 1.3300, 1.3400, 1.3460

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

 

[TifiaFX]

NZD/USD: rebound from the support level of 0.7165

05/09/2017

Current dynamics

After yesterday, marked by sluggish dynamics and low volumes, today we see an increase in volatility and the resumption of a decline in the US dollar.

The continuing tension in the Asia-Pacific region continues to stimulate purchases of assets-shelters, such as gold, yen, and franc.

There is also an increase in the prices of oil and other commodities, along with which the quotations of commodity currencies are growing.

The New Zealand dollar is also growing today against the US dollar, despite a number of fundamental factors. This is the continuing commitment of the RBNZ to conducting soft monetary policy, the uncertainty surrounding the elections in New Zealand scheduled for September 23, geopolitical tensions in the region due to the continuing provocations by North Korea against the US and Japan.

For a stable recovery in the New Zealand economy and rising inflation, "a lower New Zealand dollar rate is needed", the RBNZ said recently.

We are waiting for today data from the auction of dairy products, the publication of which is scheduled for the period after 14:00 (GMT). The price index for dairy products, prepared by Global Dairy Trade, came out last time with a value of -0.4%. If the prices for milk powder decrease again, it will have a negative impact on the New Zealand dollar.

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


Support and resistance levels

Today, NZD / USD is trading in the range between support levels of 0.7165 (EMA200), 0.7190 (EMA144 on the daily chart). A breakthrough in one direction or another may determine the direction of further medium-term movement of the NZD / USD pair.

The fastening above the levels of 0.7240 (the Fibonacci level of 38.2% of the upward correction to the global wave of decline of the pair from the level of 0.8800, which began in July 2014, the minimums of December 2016), 0.7270 (EMA200 on 4-hour, weekly charts) will confirm the return of the upward dynamics.

In the alternative scenario and in case of a breakdown of the level 0.7165, a further decline to the support levels 0.6860 (Fibonacci level of 23.6% and the lower limit of the range located between the levels of 0.7550 and 0.6860) is possible. A break at the level of 0.6860 will mean the end of the upward correction, which began in September 2015, and a return to the downward trend.

Indicators OsMA and Stochastics on the daily, weekly charts recommend short positions.

Support level: 0.7165

Resistance levels: 0.7190, 0.7240, 0.7270, 0.7300, 0.7320, 0.7455, 0.7500, 0.7550



Trading Scenarios

Sell Stop 0.7170. Stop-Loss 0.7210. Take-Profit 0.7160, 0.7100, 0.7000, 0.6860

Buy Stop 0.7210. Stop-Loss 0.7170. Take-Profit 0.7240, 0.7270, 0.7300, 0.7320, 0.7455, 0.7500, 0.7550

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

 

[TifiaFX]

DJIA: US stock markets remain under pressure

06/09/2017

Current dynamics

Received yesterday, during the US trading session, weak macro data on the US contributed to a sharp intraday decline in major US stock indexes.

The US Department of Commerce on Tuesday reported that production orders in July fell 3.3% compared to June, while orders for durable goods fell by 6.8% compared to the previous month.

The aggravation of geopolitical tension after North Korea's nuclear tests on Sunday, as well as the new hurricane "Irma" that is approaching Florida, also have a negative impact on US stock markets. The Dow Jones Industrial Average index fell by 234 points yesterday, the S & P500 - by 18 points, Nasdaq Composite fell by 59 points.

Shares of financial companies became outsiders in the S & P500. So, JP Morgan shares lost 2.4% yesterday, Bank of America - 3.2%. Shares of technological company United Technologies in the structure of DJIA on Tuesday fell by 5.7%.

The ICE dollar index closed Tuesday at around 92.25, the lowest level since August 29.

Today, US stock markets remain under pressure. Again, the increased demand for assets-seekers - yen, franc, gold. Gold futures on COMEX are traded with an increase of 0.3%, at 1340 dollars per troy ounce, reaching an annual maximum.

Recently, trades are taking place with sharp fluctuations. Investors are increasingly worried about how long the bull market will last. While the market outlook is generally positive, there are many risk factors. This is the preservation, and even growth, of the geopolitical confrontation between the United States and North Korea, the domestic political problems in the US and the White House, the weak macro data coming from the US. In the United States, Hurricane Harvey has not yet recovered from Hurricane Hurricane as he races on Florida, another powerful hurricane, Irma, is approaching.

Thus, the propensity of investors to buy risky assets noticeably decreases, which is reflected in the decline in major US stock indexes.

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


Support and resistance levels

Today, the DJIA index is trading in a range between two important levels, the breakthrough of which can determine the direction of the further movement of DJIA in the short term. In case of breakdown of the support level 21720.0 (EMA50 and the bottom line of the ascending channel on the daily chart), one can consider the possibility of opening medium-term short positions.

The target of the decrease may be support levels 20810.0 (EMA200 on the daily chart), 20630.0 (Fibonacci level 23.6% correction to the wave growth from the level of 15660.0 after recovery in February of this year to the collapse of the markets since the beginning of the year.The maximum of this wave and the Fibonacci level 0% is near the mark 22177.0).

Breakdown of key support levels 20750.0, 20630.0 significantly strengthens the risks of completion of the long-term bullish trend of DJIA.

At the same time, DJIA maintains positive long-term dynamics, trading in the uplink on the daily chart, the upper limit of which passes through the mark of 22350.0. Here, the upper border of the channel passes on the weekly chart. In case of the breakdown of the nearest strong short-term resistance level of 21810.0 (EMA200 on the 4-hour chart), the growth of DJIA will resume, and the targets will be the levels of 22060.0, 2177.0 (highs of the year and August), 22350.0.

Support levels: 21720.0, 21500.0, 21300.0, 21000.0, 20810.0, 20630.0

Resistance levels: 21810.0, 22060.0, 22177.0, 22350.0



Trading Scenarios

Buy Stop 21850.0. Stop-Loss 21690.0. Take-Profit 22060.0, 22177.0, 22350.0

Sell Stop 21690.0. Stop-Loss 21850.0. Take-Profit 21500.0, 21300.0, 21000.0, 20810.0, 20630.0

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