You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Daily Market Analysis by ForexMart
- Thread starter AppleFX
- Start date
GBP/USD Fundamental Analysis: November 23, 2016
The GBP/USD pair spent the majority of the previous trading session consolidating within the 1.2400 range as the USD kept on alternately losing and gaining its value for the past session. The value of the USD has been significantly uncertain for the past two sessions and this is an expected effect of a bullish market last Monday.
There are no major economic news releases expected for the latter part of November, and this is why a lot of currency pairs have been directed by option expiries and flows instead of fundamentals. The strength of the USD has been mostly attributed to the recent surge in US Treasury yields which was the result of Donald Trump’s victory in the US Presidential elections, but US Treasury yields have started tapering off its strength at the start of this week, causing the USD to lose some of its gains as well.
The minutes of the FOMC meeting are scheduled to be released later today, and this is expected to lend some measure of volatility to the GBP/USD pair even though the minutes are expected to confirm market speculations of an impending Fed rate hike this coming December, as well as give a general overview of the Fed’s future interest rate hikes. However, this could also induce a drop in the value of the USD once the minutes give the opposite of the market expectations.
The GBP/USD pair spent the majority of the previous trading session consolidating within the 1.2400 range as the USD kept on alternately losing and gaining its value for the past session. The value of the USD has been significantly uncertain for the past two sessions and this is an expected effect of a bullish market last Monday.
There are no major economic news releases expected for the latter part of November, and this is why a lot of currency pairs have been directed by option expiries and flows instead of fundamentals. The strength of the USD has been mostly attributed to the recent surge in US Treasury yields which was the result of Donald Trump’s victory in the US Presidential elections, but US Treasury yields have started tapering off its strength at the start of this week, causing the USD to lose some of its gains as well.
The minutes of the FOMC meeting are scheduled to be released later today, and this is expected to lend some measure of volatility to the GBP/USD pair even though the minutes are expected to confirm market speculations of an impending Fed rate hike this coming December, as well as give a general overview of the Fed’s future interest rate hikes. However, this could also induce a drop in the value of the USD once the minutes give the opposite of the market expectations.
EUR/USD Fundamental Analysis: November 23, 2016
The EUR/USD pair was expected to remain within the 1.0600-1.0650 trading range due to reports of large-scale options placed within this particular region and will remain until the options expire. The options within this range are scheduled to expire within the day and the minutes of the FOMC meeting are set to be released today, and the market is expecting an increase in the volatility of the EUR/USD pair which could possibly extend for the next few days.
There has been no major economic releases from the eurozone or the US from these past few days, and options players wielded their power during this period of low activity by attempting to control the financial market in order to safeguard their option entries. Unless other market players would have a good grasp on these very recent developments in the market, they might not be able to have a full understanding of the market movements during these past trading sessions.
For today’s session, the market is expecting quite a number of economic data to be released, such as the oil inventory data and unemployment claims data from the US. However, majority of market players are now waiting for the FOMC minutes which is scheduled to come out any time during the New York session. The market has a 95% expectation percentage for the December Fed rate hike, and the minutes from the FOMC is expected to confirm this particular speculation. Aside from confirmation of the rate hike, market players are also expecting to get hints regarding future rate hikes from the Federal Reserve. If the data fails to meet market expectations, then the USD could lose its strength and drop significantly.
The EUR/USD pair was expected to remain within the 1.0600-1.0650 trading range due to reports of large-scale options placed within this particular region and will remain until the options expire. The options within this range are scheduled to expire within the day and the minutes of the FOMC meeting are set to be released today, and the market is expecting an increase in the volatility of the EUR/USD pair which could possibly extend for the next few days.
There has been no major economic releases from the eurozone or the US from these past few days, and options players wielded their power during this period of low activity by attempting to control the financial market in order to safeguard their option entries. Unless other market players would have a good grasp on these very recent developments in the market, they might not be able to have a full understanding of the market movements during these past trading sessions.
For today’s session, the market is expecting quite a number of economic data to be released, such as the oil inventory data and unemployment claims data from the US. However, majority of market players are now waiting for the FOMC minutes which is scheduled to come out any time during the New York session. The market has a 95% expectation percentage for the December Fed rate hike, and the minutes from the FOMC is expected to confirm this particular speculation. Aside from confirmation of the rate hike, market players are also expecting to get hints regarding future rate hikes from the Federal Reserve. If the data fails to meet market expectations, then the USD could lose its strength and drop significantly.
USD/JPY Technical Analysis: November 23, 2016
The Japanese yen increased in value following the news release regarding the earthquake that hit the country, but quickly retreated after the Bank of Japan released a statement saying that the Japanese economy is still well on its way to improvement. The JPY remained within a tight trading range around multi-month highs during Tuesday’s trading session, with the pricing of the USD/JPY pair staying within the 110.00-110.50 region for the rest of the day. The currency pair was able to trade above its moving averages in its 4-hour chart, with the moving averages sustaining their bullish trend.
Resistance levels for the USD/JPY pair are expected to be at 112.00 points, while support levels for the pair are expected to come in at the 111.00 trading range. The MACD indicators for the currency pair weakened, indicating a drop in buyer positions. Meanwhile, its RSI indicators remained within the overbought territory. If the USD/JPY pair manages to sustain its bullishness, then the next short-term aim for the pair is located at 112.00 points. If the USD/JPY pair manages to go beyond this particular level, then the currency pair is expected to extend its gains towards the 113.00 trading range.
The Japanese yen increased in value following the news release regarding the earthquake that hit the country, but quickly retreated after the Bank of Japan released a statement saying that the Japanese economy is still well on its way to improvement. The JPY remained within a tight trading range around multi-month highs during Tuesday’s trading session, with the pricing of the USD/JPY pair staying within the 110.00-110.50 region for the rest of the day. The currency pair was able to trade above its moving averages in its 4-hour chart, with the moving averages sustaining their bullish trend.
Resistance levels for the USD/JPY pair are expected to be at 112.00 points, while support levels for the pair are expected to come in at the 111.00 trading range. The MACD indicators for the currency pair weakened, indicating a drop in buyer positions. Meanwhile, its RSI indicators remained within the overbought territory. If the USD/JPY pair manages to sustain its bullishness, then the next short-term aim for the pair is located at 112.00 points. If the USD/JPY pair manages to go beyond this particular level, then the currency pair is expected to extend its gains towards the 113.00 trading range.
EUR/USD Technical Analysis: November 24, 2016
The EUR lost some of its value as the US dollar continued its strengthening streak especially after the release of the minutes of the FOMC meeting, which indicated a heightened possibility of a Fed rate hike in December. The euro continued weakening during Wednesday’s trading session but experienced a slight surge and tested at the 1.0650 during the Tokyo session. However, the EUR/USD pair experienced added downward pressure prior to the London session, where the pair’s value declined towards 1.0600.
The EUR/USD pair has managed to break through its 50 and 100 EMAs in its 4-hour chart but encountered rejections immediately after going through its moving averages. The 50 EMA for the EUR/USD pair remains in the neutral territory, while the 200 and 100 EMAs were able to sustain its bearish stances within the trading session. Resistance levels for the EUR/USD pair is currently at 1.0600 points, while support levels are expected to appear at 1.0550.
The MACD indicators for the EUR/USD pair weakened, indicating a strengthening on the part of sellers. Meanwhile, its RSI indicators dropped as a result of the pair’s decreasing movement. Bears will have control over the EUR/USD until it is able to sustain the 1.0650 level, which is also the current bearish target. If the pair manages to go beyond 1.0650, then this could induce an upward direction for the currency pair.
The EUR lost some of its value as the US dollar continued its strengthening streak especially after the release of the minutes of the FOMC meeting, which indicated a heightened possibility of a Fed rate hike in December. The euro continued weakening during Wednesday’s trading session but experienced a slight surge and tested at the 1.0650 during the Tokyo session. However, the EUR/USD pair experienced added downward pressure prior to the London session, where the pair’s value declined towards 1.0600.
The EUR/USD pair has managed to break through its 50 and 100 EMAs in its 4-hour chart but encountered rejections immediately after going through its moving averages. The 50 EMA for the EUR/USD pair remains in the neutral territory, while the 200 and 100 EMAs were able to sustain its bearish stances within the trading session. Resistance levels for the EUR/USD pair is currently at 1.0600 points, while support levels are expected to appear at 1.0550.
The MACD indicators for the EUR/USD pair weakened, indicating a strengthening on the part of sellers. Meanwhile, its RSI indicators dropped as a result of the pair’s decreasing movement. Bears will have control over the EUR/USD until it is able to sustain the 1.0650 level, which is also the current bearish target. If the pair manages to go beyond 1.0650, then this could induce an upward direction for the currency pair.
GBP/USD Technical Analysis: November 24, 2016
The USD continued its strengthening streak during Wednesday’s trading session, which put additional downward pressure on the GBP which still has yet to recover from the negative blows of the Brexit. Wednesday’s trading session saw sellers dominating the overall market, with traders immediately reaching support levels of 1.2400 and went beyond the support levels after the opening of the London session. Sellers then induced the pricing of the GBP/USD pair to further drop and hit its current support levels of 1.2300.
As exhibited in the 4-hour chart of the GBP/USD, the price of the currency pair reverted from its 100 EMA and was able to go beyond its 200 EMA. The 50 and 100 EMAs for the GBP/USD is pointing towards a downward direction, while the 200 EMA remains in the neutral territory of the 4-hour chart. Resistance levels for the currency pair are expected to be found at 1.2400, while support levels are expected to be at 1.2300.
The pair’s MACD indicators weakened, showing an increase in the strength of sellers. Meanwhile, its RSI oscillators are currently directed downwards. If the GBP/USD would be able to consolidate below the 1.2400 trading range, then its extensions are expected to go towards 1.2300.
The USD continued its strengthening streak during Wednesday’s trading session, which put additional downward pressure on the GBP which still has yet to recover from the negative blows of the Brexit. Wednesday’s trading session saw sellers dominating the overall market, with traders immediately reaching support levels of 1.2400 and went beyond the support levels after the opening of the London session. Sellers then induced the pricing of the GBP/USD pair to further drop and hit its current support levels of 1.2300.
As exhibited in the 4-hour chart of the GBP/USD, the price of the currency pair reverted from its 100 EMA and was able to go beyond its 200 EMA. The 50 and 100 EMAs for the GBP/USD is pointing towards a downward direction, while the 200 EMA remains in the neutral territory of the 4-hour chart. Resistance levels for the currency pair are expected to be found at 1.2400, while support levels are expected to be at 1.2300.
The pair’s MACD indicators weakened, showing an increase in the strength of sellers. Meanwhile, its RSI oscillators are currently directed downwards. If the GBP/USD would be able to consolidate below the 1.2400 trading range, then its extensions are expected to go towards 1.2300.
GBP/USD Fundamental Analysis: November 24, 2016
The sterling pound continues to be the sole currency that has survived the far-reaching effects of the USD’s recent surges since the GBP has continuously inched higher against the US dollar even during the US elections. The GBP/USD pair consolidated and range for the majority of yesterday’s sessions but the USD further increased during the opening of the New York session as economic releases from the US such as the Durable Goods data came out exceeding initial market expectations.
The GBP/USD pair initially plummeted towards 1.2350 points but recovered immediately and broke through 1.2400 and is currently resting just below the 1.2450 region. The GBP is currently on the strong side and should the USD exhibit weakness in the coming days, then the GBP/USD is expected to rise to 1.2600 and could possibly go higher.
The FOMC meeting minutes were released yesterday and has confirmed the possibility of a Fed rate hike this coming December especially since its members talked about the urgent need to increase interest rates as soon as possible. The minutes did not add much volatility to the market since it met initial market speculations. For today’s trading session, there are no important economic releases expected from both the US and the UK, and the currency pair is expected to further consolidate with bullish biases enabling it to sustain its position over 1.2400. Market players are slowly regaining their confidence in the sterling pound, and is expected to further increase in the coming sessions.
The sterling pound continues to be the sole currency that has survived the far-reaching effects of the USD’s recent surges since the GBP has continuously inched higher against the US dollar even during the US elections. The GBP/USD pair consolidated and range for the majority of yesterday’s sessions but the USD further increased during the opening of the New York session as economic releases from the US such as the Durable Goods data came out exceeding initial market expectations.
The GBP/USD pair initially plummeted towards 1.2350 points but recovered immediately and broke through 1.2400 and is currently resting just below the 1.2450 region. The GBP is currently on the strong side and should the USD exhibit weakness in the coming days, then the GBP/USD is expected to rise to 1.2600 and could possibly go higher.
The FOMC meeting minutes were released yesterday and has confirmed the possibility of a Fed rate hike this coming December especially since its members talked about the urgent need to increase interest rates as soon as possible. The minutes did not add much volatility to the market since it met initial market speculations. For today’s trading session, there are no important economic releases expected from both the US and the UK, and the currency pair is expected to further consolidate with bullish biases enabling it to sustain its position over 1.2400. Market players are slowly regaining their confidence in the sterling pound, and is expected to further increase in the coming sessions.
USD/JPY Technical Analysis: November 24, 2016
The stock exchange in Japan was close due to the celebration of the Labor Thanksgiving Day. Furthermore, the market was influenced by external factors. The pair kept intact in an ascending channel pattern. The buyers were able to touch the 111.0 level, stopped and moved higher during the mid-EU session. The Gopher pushed the 111.0 region and bounced towards 112.00.
After the testing the aforesaid level, the price headed to the mark 113.00.
According to in the 1-hour chart, the price hovered on top of the 50-EMA throughout the trading day. The 50-EMA established a neutral stance, whereas both 100 and 200 EMAs moved upwards. Current resistance is found at 113.00, support hit the 112.00 level. The MACD indicator is placed at the midpoint. Should the histogram pierced the negative zone and implied the strengthening of the sellers. If the indicator returned to the positive territory, buyers have the power to dominate the market. RSI remained around the overbought readings.
When the USDJPY pair failed to extend its gains, there is a tendency for the risks to maximize where correction is really necessary. In line with this, seller's are able to stir prices near the 109.00 and 110.00. The further occurrence of the ongoing upward pressure will test the 113.00 level soon.
The stock exchange in Japan was close due to the celebration of the Labor Thanksgiving Day. Furthermore, the market was influenced by external factors. The pair kept intact in an ascending channel pattern. The buyers were able to touch the 111.0 level, stopped and moved higher during the mid-EU session. The Gopher pushed the 111.0 region and bounced towards 112.00.
After the testing the aforesaid level, the price headed to the mark 113.00.
According to in the 1-hour chart, the price hovered on top of the 50-EMA throughout the trading day. The 50-EMA established a neutral stance, whereas both 100 and 200 EMAs moved upwards. Current resistance is found at 113.00, support hit the 112.00 level. The MACD indicator is placed at the midpoint. Should the histogram pierced the negative zone and implied the strengthening of the sellers. If the indicator returned to the positive territory, buyers have the power to dominate the market. RSI remained around the overbought readings.
When the USDJPY pair failed to extend its gains, there is a tendency for the risks to maximize where correction is really necessary. In line with this, seller's are able to stir prices near the 109.00 and 110.00. The further occurrence of the ongoing upward pressure will test the 113.00 level soon.
NZD/USD Technical Analysis: November 24, 2016
The New Zealand currency appeared to be sluggish compared to its American counterpart. The greenbacks moved higher on the back of the latest data that indicated further strengthening of the United States economy.
The pair maintained a near-term bearish outlook. Sellers secured the 0.7100 region as it rejected prices downwards each time it tries to move on the upper side. Withdrawing from its daily high the kiwi had a downturn close to the 0.7050 region amid the post-European session on Wednesday.
The level run low towards the downward momentum shortly and it eventually breaks. The 50-EMA dropped the price as shown in the 4-hour chart. The moving averages is moving downbound. Resistance is found at 0.7050, support touched the 0.7000 level. The MACD histogram settled at the center point. If the indicator that enters the positive area, it implies improving the strength of the buyers. Contrarily, the negative territory will indicates sellers ability to handle the overall market.
RSI established within the neutral area. The NZD/USD is able to preserve a negative trend as long as it is placed down from the 0.71000. In case that the NZ currency jumped to 0.7050 the price is able to expand its gains reaching the 0.7100 region.
The New Zealand currency appeared to be sluggish compared to its American counterpart. The greenbacks moved higher on the back of the latest data that indicated further strengthening of the United States economy.
The pair maintained a near-term bearish outlook. Sellers secured the 0.7100 region as it rejected prices downwards each time it tries to move on the upper side. Withdrawing from its daily high the kiwi had a downturn close to the 0.7050 region amid the post-European session on Wednesday.
The level run low towards the downward momentum shortly and it eventually breaks. The 50-EMA dropped the price as shown in the 4-hour chart. The moving averages is moving downbound. Resistance is found at 0.7050, support touched the 0.7000 level. The MACD histogram settled at the center point. If the indicator that enters the positive area, it implies improving the strength of the buyers. Contrarily, the negative territory will indicates sellers ability to handle the overall market.
RSI established within the neutral area. The NZD/USD is able to preserve a negative trend as long as it is placed down from the 0.71000. In case that the NZ currency jumped to 0.7050 the price is able to expand its gains reaching the 0.7100 region.
USD/JPY Fundamental Analysis: November 25, 2016
The USD had already hit its highest levels in eight months against the JPY after investors are still making adjustments to higher interest rates in the US, a booming economic market and market speculations that Donald Trump’s fiscal policies will cause inflation to surge, prompting the Federal Reserve to have interest rate hikes on a much frequent basis this coming 2017.
The increase in interest rates are expected to help in increasing the gap between the interest rate differentials of the US Treasury Bonds and Japanese Government Bonds, therefore making the USD more appealing for investors.
The USD/JPY pair closed down the previous trading session at 113.313 after increasing by +0.73% or 0.822 points. Thursday was a bank holiday for the US, and volumes clocked in at below average rates. This muted market volume is expected to be sustained until Friday since a lot of the major market players are not yet expected to return to the market until next week.
Since the USD/JPY pair closed off the Thursday session on a highly positive note, the currency pair is expected to continue its increase up until Friday. However, selling pressure could be limited since US banks are expected to remain spectators as of the moment.
For economic releases from Japan, the Tokyo Core CPI is expected to clock in at -0.4%, the same as last month’s data. Meanwhile, the National Core CPI is expected to come in at -0.4%, which is slightly lower than its previous reading of -0.5%. SSPI data is expected to remain at 0.3%, while the Bank of Japan Core CPI is expected to experience a slight increase of 0.3% as compared to last month’s reading of 0.2%. Major economic releases from the US include the Goods Trade Balance data, Flash Services PMI, and Preliminary Wholesale Inventories.
The USD had already hit its highest levels in eight months against the JPY after investors are still making adjustments to higher interest rates in the US, a booming economic market and market speculations that Donald Trump’s fiscal policies will cause inflation to surge, prompting the Federal Reserve to have interest rate hikes on a much frequent basis this coming 2017.
The increase in interest rates are expected to help in increasing the gap between the interest rate differentials of the US Treasury Bonds and Japanese Government Bonds, therefore making the USD more appealing for investors.
The USD/JPY pair closed down the previous trading session at 113.313 after increasing by +0.73% or 0.822 points. Thursday was a bank holiday for the US, and volumes clocked in at below average rates. This muted market volume is expected to be sustained until Friday since a lot of the major market players are not yet expected to return to the market until next week.
Since the USD/JPY pair closed off the Thursday session on a highly positive note, the currency pair is expected to continue its increase up until Friday. However, selling pressure could be limited since US banks are expected to remain spectators as of the moment.
For economic releases from Japan, the Tokyo Core CPI is expected to clock in at -0.4%, the same as last month’s data. Meanwhile, the National Core CPI is expected to come in at -0.4%, which is slightly lower than its previous reading of -0.5%. SSPI data is expected to remain at 0.3%, while the Bank of Japan Core CPI is expected to experience a slight increase of 0.3% as compared to last month’s reading of 0.2%. Major economic releases from the US include the Goods Trade Balance data, Flash Services PMI, and Preliminary Wholesale Inventories.
GBP/USD Fundamental Analysis: November 25, 2016
The GBP/USD pair continued its consolidation and has remarkably sustained its momentum in the face of the USD’s constantly increasing value. Yesterday’s session saw the USD surging even higher as the market speculations for a Fed rate hike increased by up to 100% and has also begun to look ahead for 2017 when it comes to the frequency of interest rate hikes from the Fed. However, since these rate hikes will be dependent on the incoming government, the fate of the US market is yet unsure especially since the market has yet to see how the Trump administration would be handling things in the future.
The UK Autumn statement was released during yesterday’s session and has generally predicted a grim economic outlook for the UK for the next two years since this would be the period where the effects of Brexit would be largely felt by the economy. The growth forecast for the UK market was listed at 1.4% for 2017 and 1.7% for 2018 even though some market players are expecting the actual numbers to be much lower than expected.
The resilience of the GBP will be tested today since the UK GDP data is scheduled to be released during the European session and is expected to have a reading of 0.5%. Once the GDP data either exceeds or matches market expectations, then the GBP/USD could possibly break through 1.2500 and could easily test the 1.2600 region. However, if the data comes out on a much lower range, then the currency pair could drop to 1.2300 and could be subject to significant pressure from the market.
The GBP/USD pair continued its consolidation and has remarkably sustained its momentum in the face of the USD’s constantly increasing value. Yesterday’s session saw the USD surging even higher as the market speculations for a Fed rate hike increased by up to 100% and has also begun to look ahead for 2017 when it comes to the frequency of interest rate hikes from the Fed. However, since these rate hikes will be dependent on the incoming government, the fate of the US market is yet unsure especially since the market has yet to see how the Trump administration would be handling things in the future.
The UK Autumn statement was released during yesterday’s session and has generally predicted a grim economic outlook for the UK for the next two years since this would be the period where the effects of Brexit would be largely felt by the economy. The growth forecast for the UK market was listed at 1.4% for 2017 and 1.7% for 2018 even though some market players are expecting the actual numbers to be much lower than expected.
The resilience of the GBP will be tested today since the UK GDP data is scheduled to be released during the European session and is expected to have a reading of 0.5%. Once the GDP data either exceeds or matches market expectations, then the GBP/USD could possibly break through 1.2500 and could easily test the 1.2600 region. However, if the data comes out on a much lower range, then the currency pair could drop to 1.2300 and could be subject to significant pressure from the market.
EUR/USD Fundamental Analysis: November 25, 2016
The euro bulls made some strategic movement on Thursday and appear to keep on moving as of this moment. The U.S Thanksgiving celebration aided the euro since US traders were not present, the euro is able to execute their plans. The EUR bulls guarded the 1.0500 with all their strength in spite of the continuous strengthening of the dollars.
Subsequent to the presidential elections, the single currency was heavily hit by the power of the greenbacks as it made a downturn from its highs specified at 1.12 and lows are close to 1.05.
According to yesterday’s readings, the region centrally located in 1.0500 and 1.0060 is the most reliable support although the 1.0500 were already broken. In view of this, the investors, treasury and investment partnerships tend to secure the 1.05 area since a clear break were not able to perceive as the consolidation phase is expected to continue on top of the aforesaid region
Furthermore, there is no major economic news for today within the U.S and European regions and the EURUSD would keep a bullish sentiment throughout the day.
The euro bulls made some strategic movement on Thursday and appear to keep on moving as of this moment. The U.S Thanksgiving celebration aided the euro since US traders were not present, the euro is able to execute their plans. The EUR bulls guarded the 1.0500 with all their strength in spite of the continuous strengthening of the dollars.
Subsequent to the presidential elections, the single currency was heavily hit by the power of the greenbacks as it made a downturn from its highs specified at 1.12 and lows are close to 1.05.
According to yesterday’s readings, the region centrally located in 1.0500 and 1.0060 is the most reliable support although the 1.0500 were already broken. In view of this, the investors, treasury and investment partnerships tend to secure the 1.05 area since a clear break were not able to perceive as the consolidation phase is expected to continue on top of the aforesaid region
Furthermore, there is no major economic news for today within the U.S and European regions and the EURUSD would keep a bullish sentiment throughout the day.
USD/CAD Technical Analysis: November 25, 2016
The USD/CAD made an attempt to extend its gains in order to move higher to the 1.37 level and when a reversal occurred, the channel will breakdown to a lower side. The pair further rebounded from the psychological 1.3500 area as shown in the 1-hour chart. Therefore, this event arise the possibility for retesting the 1.3400 level of support and the hope for the dollar bulls to reacquire their position and pushed for a breakout on top of the trading range. The SMAs prevented the bears from moving forward.
The USD/CAD made an attempt to extend its gains in order to move higher to the 1.37 level and when a reversal occurred, the channel will breakdown to a lower side. The pair further rebounded from the psychological 1.3500 area as shown in the 1-hour chart. Therefore, this event arise the possibility for retesting the 1.3400 level of support and the hope for the dollar bulls to reacquire their position and pushed for a breakout on top of the trading range. The SMAs prevented the bears from moving forward.
EUR/GBP Technical Analysis: November 25, 2016
The pair EUR/GBP has been on a lows for short-term trading. It testing within the range support that may rebound to the resistance level at .8560 level.
The 200-SMA was calculated to be higher than the 100-SMA that shows the lowest resistance is close to the bottom which could be set as Short-term resistance in the future.
The Stochastic indicates the buyers to be dominating the price trend but this can be reversed when it goes lower and entered the overbought area. Another consequence is the when the price breaks lower than the support level.
The Euro zone is performing well for this week as shown by the economic data where most results such as flash manufacturing and services PMIs gave positive numbers even higher than the target except for the German Ifo business climate that remains the same with 110.4 result lower than the target increase of 110.6.
The Autumn Forecast statement of the government has given a positive outlook for the investors in the middle of Brexit process. Furthermore, the chancellor has given a promising statement saying the pension benefits would not be released while there will be more infrastructure spending.
The U.K. second estimate of GDP will be publicized today and is expected to give the same output of 0.5%. Additionally, the preliminary business investment data will be released today and if there is a decline of 0.2% then this would not be good for the pound. However, if the numbers are high then this would be beneficial for the economy of U.K.
The pair EUR/GBP has been on a lows for short-term trading. It testing within the range support that may rebound to the resistance level at .8560 level.
The 200-SMA was calculated to be higher than the 100-SMA that shows the lowest resistance is close to the bottom which could be set as Short-term resistance in the future.
The Stochastic indicates the buyers to be dominating the price trend but this can be reversed when it goes lower and entered the overbought area. Another consequence is the when the price breaks lower than the support level.
The Euro zone is performing well for this week as shown by the economic data where most results such as flash manufacturing and services PMIs gave positive numbers even higher than the target except for the German Ifo business climate that remains the same with 110.4 result lower than the target increase of 110.6.
The Autumn Forecast statement of the government has given a positive outlook for the investors in the middle of Brexit process. Furthermore, the chancellor has given a promising statement saying the pension benefits would not be released while there will be more infrastructure spending.
The U.K. second estimate of GDP will be publicized today and is expected to give the same output of 0.5%. Additionally, the preliminary business investment data will be released today and if there is a decline of 0.2% then this would not be good for the pound. However, if the numbers are high then this would be beneficial for the economy of U.K.
GBP/USD Fundamental Analysis: November 28, 2016
The GBP/USD exhibited a generally bullish stance last week as the sterling pound continued to counter the recent strengthening of the USD, with the GBP the lone currency that has held its ground against the ever-increasing value of the USD. The strong stance of the GBP is reflective of the currency settling as the invocation of Article 50 draws nearer and after a positive reaction from the markets after the high court has ruled that the Parliament will have to go through a debate and discussion before pushing through with the said article. This has resulted into the market receiving assurance that the UK economy will be well taken care of as the region goes through the Brexit process.
This has caused the GBP/USD pair to continuously consolidate on both sides of the 1.2500 region in spite of the added strength of the USD. The GBP did not experience much volatility for the past week as the Hammond Autumn statement predicted a somewhat negative forecast for the UK economy for the next two years, thereby meeting general market expectations.
However, for this week, the currency pair is expected to experience added volatility as currency flows are more likely to have an effect on the value of the sterling pound. The NFP employment report from the US is also expected to determine whether the Fed will be increasing the frequency of its rate hikes this coming 2017.
The GBP/USD exhibited a generally bullish stance last week as the sterling pound continued to counter the recent strengthening of the USD, with the GBP the lone currency that has held its ground against the ever-increasing value of the USD. The strong stance of the GBP is reflective of the currency settling as the invocation of Article 50 draws nearer and after a positive reaction from the markets after the high court has ruled that the Parliament will have to go through a debate and discussion before pushing through with the said article. This has resulted into the market receiving assurance that the UK economy will be well taken care of as the region goes through the Brexit process.
This has caused the GBP/USD pair to continuously consolidate on both sides of the 1.2500 region in spite of the added strength of the USD. The GBP did not experience much volatility for the past week as the Hammond Autumn statement predicted a somewhat negative forecast for the UK economy for the next two years, thereby meeting general market expectations.
However, for this week, the currency pair is expected to experience added volatility as currency flows are more likely to have an effect on the value of the sterling pound. The NFP employment report from the US is also expected to determine whether the Fed will be increasing the frequency of its rate hikes this coming 2017.
USD/JPY Technical Analysis: November 28, 2016
The USD has just clinched its highest trading range for eight straight months against the JPY after the US bond yields continued to surge during the Asian trading session after the US market holiday. The ascending trend for the currency pair continued, with the price of the pair extending beyond its upper limit at 114.00 points before inching lower. The downward direction of the pair caused it to lose momentum at the 113.00 trading range during the start of the London session and remained until the end of the session. The pair’s 1-hour chart encountered its barrier at the 50 EMA, lending a strong support for the currency pair.
The moving averages for the currency pair maintained its bullish stance within its set timeframe. The pair’s resistance levels are expected to be at 114.00, while its support levels are expected to be at 113.00. The MACD indicators for the currency pair weakened, indicating a decrease in buyer positions. Meanwhile, its RSI indicators have already left the overbought range.
The USD/JPY is expected to go beyond the upward channel if the pair would be able to go lower than 112.00. In order to diminish the effect of the present upward pressure, sellers will have to induce the pricing of the pair to go lower than 111.00. Or else a move towards 113.00 will cause a positive reaction and could trigger the pair to reach the 114.00 trading region.
The USD has just clinched its highest trading range for eight straight months against the JPY after the US bond yields continued to surge during the Asian trading session after the US market holiday. The ascending trend for the currency pair continued, with the price of the pair extending beyond its upper limit at 114.00 points before inching lower. The downward direction of the pair caused it to lose momentum at the 113.00 trading range during the start of the London session and remained until the end of the session. The pair’s 1-hour chart encountered its barrier at the 50 EMA, lending a strong support for the currency pair.
The moving averages for the currency pair maintained its bullish stance within its set timeframe. The pair’s resistance levels are expected to be at 114.00, while its support levels are expected to be at 113.00. The MACD indicators for the currency pair weakened, indicating a decrease in buyer positions. Meanwhile, its RSI indicators have already left the overbought range.
The USD/JPY is expected to go beyond the upward channel if the pair would be able to go lower than 112.00. In order to diminish the effect of the present upward pressure, sellers will have to induce the pricing of the pair to go lower than 111.00. Or else a move towards 113.00 will cause a positive reaction and could trigger the pair to reach the 114.00 trading region.
GBP/USD Fundamental Analysis: November 29, 2016
The GBP/USD pair was subject to downward pressure during the previous trading session as monthly cash flows combined with a slight increase in the USD triggered the pair to drop from its highs of 1.2500 to just below 1.2400 points. Every month, the market always expects added selling pressure for the GBP since the UK pays its EU membership fees every month. As a result, the value of the EUR/GBP increases, and the GBP becomes subject to significant losses.
There are also some speculations that the Brexit process will be subject to a number of legal challenges which could cause the process to be delayed altogether, and the schedule of events for the Brexit process could possibly go haywire. The UK government is also questioning the decision of the High Court for a Parliament debate first before pushing through with the Brexit process, while the Parliament is already preparing for the said debate just in case that the High Court refuses to overrule its previous decision on the Brexit process. The strength of the GBP would definitely be affected by these expected delays in the Brexit process and could have an adverse effect on the UK economy in general.
For today’s trading session, there is no major economic news expected from the UK. However, the US will be releasing its Advanced GDP data and this could increase the market volatility, with a consolidation possibly happening together with a bearish stance.
The GBP/USD pair was subject to downward pressure during the previous trading session as monthly cash flows combined with a slight increase in the USD triggered the pair to drop from its highs of 1.2500 to just below 1.2400 points. Every month, the market always expects added selling pressure for the GBP since the UK pays its EU membership fees every month. As a result, the value of the EUR/GBP increases, and the GBP becomes subject to significant losses.
There are also some speculations that the Brexit process will be subject to a number of legal challenges which could cause the process to be delayed altogether, and the schedule of events for the Brexit process could possibly go haywire. The UK government is also questioning the decision of the High Court for a Parliament debate first before pushing through with the Brexit process, while the Parliament is already preparing for the said debate just in case that the High Court refuses to overrule its previous decision on the Brexit process. The strength of the GBP would definitely be affected by these expected delays in the Brexit process and could have an adverse effect on the UK economy in general.
For today’s trading session, there is no major economic news expected from the UK. However, the US will be releasing its Advanced GDP data and this could increase the market volatility, with a consolidation possibly happening together with a bearish stance.
EUR/USD Fundamental Analysis: November 29, 2016
The EUR/USD pair met market expectations and was able to increase under low market liquidity, with the buyers still in total control of the currency pair as of the moment. A lot of banks are also reportedly reversing their calls on the EUR, with majority of them now speculating that the euro’s value will increase in the short-term in spite of the scheduled Fed meeting in a few weeks.
ECB’s Draghi made a speech yesterday which highlighted the bank’s monetary policy. However, Draghi failed to mention anything that was not already known by the market in general, and the market’s reaction to his speech was somewhat muted and did not induce much volatility. The pricing of the EUR/USD pair increased by up to 1.0670 during the Tokyo trading session and dropped to 1.0565 as the USD rallied but the pair has since then managed to inch up beyond 1.0600 points.
For today’s trading session, the market is not expecting any major economic data to be released from the eurozone. However, the US is scheduled to be releasing the Advanced GDP data and the market is expecting an increase in volatility once this particular information is released. The bullish stance of the pair is expected to continue for today, with trading limited to within the 1.0670-1.0570 region since the price of the pair could be dominated by currency flows. Although the euro has significantly dropped in value during the past sessions, its reversions are noticeably increasing in frequency and more buyers are expected to come in if the EUR/USD manages to sustain its place in the 1.0500-1.0600 trading range.
The EUR/USD pair met market expectations and was able to increase under low market liquidity, with the buyers still in total control of the currency pair as of the moment. A lot of banks are also reportedly reversing their calls on the EUR, with majority of them now speculating that the euro’s value will increase in the short-term in spite of the scheduled Fed meeting in a few weeks.
ECB’s Draghi made a speech yesterday which highlighted the bank’s monetary policy. However, Draghi failed to mention anything that was not already known by the market in general, and the market’s reaction to his speech was somewhat muted and did not induce much volatility. The pricing of the EUR/USD pair increased by up to 1.0670 during the Tokyo trading session and dropped to 1.0565 as the USD rallied but the pair has since then managed to inch up beyond 1.0600 points.
For today’s trading session, the market is not expecting any major economic data to be released from the eurozone. However, the US is scheduled to be releasing the Advanced GDP data and the market is expecting an increase in volatility once this particular information is released. The bullish stance of the pair is expected to continue for today, with trading limited to within the 1.0670-1.0570 region since the price of the pair could be dominated by currency flows. Although the euro has significantly dropped in value during the past sessions, its reversions are noticeably increasing in frequency and more buyers are expected to come in if the EUR/USD manages to sustain its place in the 1.0500-1.0600 trading range.
GBP/USD Fundamental Analysis: November 29, 2016
The GBP/USD pair was subject to downward pressure during the previous trading session as monthly cash flows combined with a slight increase in the USD triggered the pair to drop from its highs of 1.2500 to just below 1.2400 points. Every month, the market always expects added selling pressure for the GBP since the UK pays its EU membership fees every month. As a result, the value of the EUR/GBP increases, and the GBP becomes subject to significant losses.
There are also some speculations that the Brexit process will be subject to a number of legal challenges which could cause the process to be delayed altogether, and the schedule of events for the Brexit process could possibly go haywire. The UK government is also questioning the decision of the High Court for a Parliament debate first before pushing through with the Brexit process, while the Parliament is already preparing for the said debate just in case that the High Court refuses to overrule its previous decision on the Brexit process. The strength of the GBP would definitely be affected by these expected delays in the Brexit process and could have an adverse effect on the UK economy in general.
For today’s trading session, there is no major economic news expected from the UK. However, the US will be releasing its Advanced GDP data and this could increase the market volatility, with a consolidation possibly happening together with a bearish stance.
The GBP/USD pair was subject to downward pressure during the previous trading session as monthly cash flows combined with a slight increase in the USD triggered the pair to drop from its highs of 1.2500 to just below 1.2400 points. Every month, the market always expects added selling pressure for the GBP since the UK pays its EU membership fees every month. As a result, the value of the EUR/GBP increases, and the GBP becomes subject to significant losses.
There are also some speculations that the Brexit process will be subject to a number of legal challenges which could cause the process to be delayed altogether, and the schedule of events for the Brexit process could possibly go haywire. The UK government is also questioning the decision of the High Court for a Parliament debate first before pushing through with the Brexit process, while the Parliament is already preparing for the said debate just in case that the High Court refuses to overrule its previous decision on the Brexit process. The strength of the GBP would definitely be affected by these expected delays in the Brexit process and could have an adverse effect on the UK economy in general.
For today’s trading session, there is no major economic news expected from the UK. However, the US will be releasing its Advanced GDP data and this could increase the market volatility, with a consolidation possibly happening together with a bearish stance.
USD/JPY Technical Analysis: November 29, 2016
The USD further dropped in relation to the JPY due to ambiguities surrounding oncoming economic events such as the release of the Non-farm Payrolls data and the minutes of the OPEC meeting, prompting a lot of investors to clamp down on their deals. The pricing of the USD/JPY pair sustained its upward direction during Monday’s trading session but remained within its lower levels and made small reversions during the Tokyo session. However, as the European session opened, the currency pair started speeding up its increase and ultimately reverted back to 113.00 just before the start of the New York session.
The hourly chart of the USD/JPY pair showed that its pricing was able to go beyond the 100 EMA during the middle of the London session and tested the 50 EMA towards the closing of the London session. The currency pair’s 200 and 100 EMAs went up further while the 50 EMA slowly went towards the neutral territory in the same chart. The resistance levels for the USD/JPY is expected to be at 113.00, while its support levels are expected to be at 112.00.
The MACD indicators for the currency pair inched higher, indicating an added strength in buyer positions. Its RSI indicators also moved upwards. For this week, the USD/JPY is expected to make a comeback, with the first bull target slated to be at 113.00 points. If the pair manages to reach this level, then the pair could possibly extend its gains toward 114.00 points.
The USD further dropped in relation to the JPY due to ambiguities surrounding oncoming economic events such as the release of the Non-farm Payrolls data and the minutes of the OPEC meeting, prompting a lot of investors to clamp down on their deals. The pricing of the USD/JPY pair sustained its upward direction during Monday’s trading session but remained within its lower levels and made small reversions during the Tokyo session. However, as the European session opened, the currency pair started speeding up its increase and ultimately reverted back to 113.00 just before the start of the New York session.
The hourly chart of the USD/JPY pair showed that its pricing was able to go beyond the 100 EMA during the middle of the London session and tested the 50 EMA towards the closing of the London session. The currency pair’s 200 and 100 EMAs went up further while the 50 EMA slowly went towards the neutral territory in the same chart. The resistance levels for the USD/JPY is expected to be at 113.00, while its support levels are expected to be at 112.00.
The MACD indicators for the currency pair inched higher, indicating an added strength in buyer positions. Its RSI indicators also moved upwards. For this week, the USD/JPY is expected to make a comeback, with the first bull target slated to be at 113.00 points. If the pair manages to reach this level, then the pair could possibly extend its gains toward 114.00 points.