8 December, 2014
At the beginning of the last week the USD had considerably weakened against the major currencies; however favourable US labor market data provided support to the American currency. Nonfarm payroll has exceeded the forecast and the pair GBP/USD fell to the key support level and the local lows of 1.5600. Last week trading session closed at the level of 1.5570. At this week opening session the pair continued to move down by inertia and is now trading at the level of 1.5550. We do not expect any important UK or US news today, which news that the pair will consolidate and high volatility is unlikely.
Levels of support and resistance
It is expected that the pair will undergo minor upward correction and then will move in the sideways channel. Next key support level is 1.5410, which is also a bottom limit of the downward channel and the local lows of August 2013. In the medium-term it is likely that the pair will go down to the target levels of 1.5410 and 1.5275.
Support levels: 1.5550, 1.5500, 1.5470, 1.5410, 1.5300 and 1.5275.
Resistance levels: 1.5600, 1.5630, 1.5670,1.5720, 1.5750, 1.5790, 1.5875 and 1.5910.
In the current situation it makes sense to open short positions with stop-loss above the level of 1.5600 and take profit at 1.5410.
Analyst of LiteForex Investments Limited
US stock indices went up on Wednesday after the release of the minutes of the US Fed meeting in January, which was devoted to the US monetary policy. Dow Jones Industrial Average rose by 1.6%, Nasdaq Composite - by 2.2%.
Past week was marked by a two-day speech of Janet Yellen, the head of the US Fed. Mrs. Yellen did not give a straightforward answer regarding the interest rate increase at the US Fed meeting in March...
On Thursday, the price of gold strengthened by 4% and reached its year highs. The price has been growing amid an increase in demand for safe-haven assets, such as gold and the Yen...
Yesterday, US Ministry of Energy announced about unexpected decline of oil and oil products reserves by 754 million barrels over the last week. Spot-price of crude oil Brent has grown over 31.80 USD per barrel...
Over the past 2 weeks the Yen has significantly strengthened its positions against the USD due to the increasing demand for the safe-haven currency. Mixed macro-economic data on the US economy has decreased a chance that the US Fed will tighten monetary policy...
The currency pair is traded at the strong level of 1.0960 –1.1060. In case of maintenance and testing of the level and respective confirmation (for example, a pattern Price Action), we recommend to open long positions. Stop order can be placed below the signal line...
Despite that fact that the data on Non-FarmPayRolls was below the forecast (151 000 against the forecast of 190 000 and 262 000 new jobs in December), the USD has grown against the major currencies. The rise was caused by the other data on the US labor market in January...
While market participants are waiting for the release of NFPR (Non-Farm PayRolls), oil prices are gradually declining since the opening of the trading day and at the beginning of the European session...
API (American Petroleum Institute) report, released this Tuesday, showed that last week US oil stocks rose by 3.8 million barrels. Obviously, it was a bad news for oil prices, as heavy stocks of oil in the USA creates situation when supply outruns demand in the world market...
|8||Fort Financial Services||67%|