EUR/USD: holiday lull
Current trend
Since Monday the currency pair EUR/USD has traded in the upper band of the indicator “Bollinger bands” (1.3720-1.3670). The beginning of the holiday week has had soothing effect on the pair, which continues to trade in flat. The US data on number of orders for durable goods in November will become known today. It is expected that the index will increase by 1.7%, which can lead to the decline of quotes of the pair up to the lower limit of the range (1.3670).
Support and resistance
On the four-hour chart technical indicators demonstrate mixed signals, which is typical for the quiet market. Bollinger bands are getting horizontal. MACD histogram is in the negative zone, its volumes are decreasing. Stochastic lines are directed downwards.
Resistance levels: 1.3720, 1.3770 and 1.3810.
Support levels: 1.3670, 1.3620 and 1.3580.
Trading tips
In the current situation it makes sense to open short positions at the current price with profit taking at the level of 1.3670.
Dmitry Zolotov
Analyst of LiteForex Group of Companies
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USD/JPY: the pair reaches new highs
Current trend
Due to holidays in Japan and the U.S., market volatility is low. The pair USD/JPY failed to leave the limits of the channel of 104.11-104.42. Although US statistics can affect further movement in the pair, leap in price is not expected. The Yen is still under pressure from “super” soft monetary policy of the bank of Japan. USD/JPY rate has reached the five-year highs and the “bulls” will need strong fundamentals factors in order to raise the rate higher up.
Support and resistance
On the four-hour chart technical indicators give mixed signals. Bollinger bands are in the sideways, indicating calm market. MACD histogram is in the positive zone forming a weak buy signal. Support levels are 103.75 and 103.45. Resistance levels are 104.40 and 104.65.
Trading tips
In case of conservation of the current trend, it is recommended to open short positions from resistance levels of 104.40 and 104.65 with the targets of 103.75 and 103.45.
Vadim Smarzh
Analyst of LiteForex Group of Companies
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