Daily Market Analysis by ForexMart

EUR/USD Technical Analysis: February 3, 2017

The single European currency got some support from the decline of Spain’s Unemployment Change and it further benefited from the retracement of US dollar. Investor keeps their focus on Draghi’s announcement took place on Thursday.

The euro came in green versus its U.S rival and resumed its bullishness eventually. Traders drove the price to 1.0800 during the Asian hours and lead the level in the post-EU opening. The price rebounded in the 50-EMA as seen in the 4-hour chart. The EUR/USD progress on top of the moving averages. According to the 4-hour chart, the 50, 100 and 200-EMAs en route upwards. Resistance touched 1.0850, support entered 1.0800. The MACD is viewed as bullish and confined in the positive zone. The RSI consolidated in the overvalued territory and headed higher.

Based on the forecast, the EUR may obtain a bullish momentum granting that it hovered above 1.0800 resistance region. In line with this, the pair could expand its development towards the mark 1.8050. Sellers should lead below the area 1.0700 in to help ease the pressure while the 1.0600 handle manage to control.
 
NZD/USD Technical Analysis: February 3, 2017

The Kiwi against greenback trades with high volatility on Thursday trading session. The 0.7350 level stands as a minor resistance but levels below the 0.72 mark also gives support for the pair. For now, it is good to wait on the sidelines until the price breaks higher than the Resistance levels or to drop lower from the support to be more certain which seems about to happen today as the U.S. Nonfarm payrolls are about to be released.
 
EUR/GBP Technical Analysis: February 3, 2017

The EUR/GBP pair sits atop the 0.85 level that seems to be a strong support to form a bullish candle pattern. This signals the price could further go up which is favorable for buyers but there might be choppiness to linger in the upper channel. It may not be wise to sell the pair with 0.85 and below being a strong support but if the price breaks lower than the 0.8450 level, the pair could reverse and becomes a downtrend.
 
EUR/JPY Technical Analysis: February 3, 2017

The Euppy pair has been on a correction since last month in 2016 inducing high volatility in the market. Most of major economic events affect the Japanese yen with monetary policy statements and policy rates remain the same unlike in Euro. The BOJ is scheduled to have a meeting today which is described to be favorable for the yen against Euro in the succeeding trading days.

The Retails sales report for Euro is expected to have a result as much as 0.03% which is significantly greater than the former -0.04% while the Italian Preliminary CPI is anticipated to incur 0.02% less than the former 0.04%.

There is a high volatility present for the pair ranging between the 122.070 and 120.90 levels with false breakouts implying the uncertainty in the market. This cause indecisiveness even to bulls with impulsiveness of the bears taking over the market as it breaks lower than the 120.90 level. It is anticipated to close lower than the target towards the 118.50 level which is a probable strong support for the price after reaching the 120.90 level.

Despite its fall on Thursday, there seems to have a strong support which is around 120 handle that makes it highly plausible for the buyers to take over again the market. Hence, it is favorable to trade long positions but traders should be cautioned of choppiness in the market. Overall, if the price remains strong within the upper channel, then there would not much be of a problem and keep the pair steadfast.
 
USD/JPY Fundamental Analysis: February 6, 2017

The USD/JPY pair attempted to rally several times during the past week due to the positive feel of the US equity markets as well as its effect on the US carry trade but there was a shortage of buyers which could have fueled an upside follow-through. The USD/JPY pair finished the previous trading session at 112.551 points after dropping by -2.17% or 2.496 points. This movement in the currency pair was largely due to Trump’s comments in the past week as well as statements coming from both the Fed and the BoJ.

The FOMC maintained its current rates last week at 0.50%-0.75% and was generally expected by the majority of market players, but the bearish tone of the USD/JPY pair was also largely influenced by the Fed’s refusal to give out hints with regards to its next interest rate hike.

There are no major news releases coming from either Japan or US for this week, and this means that the market will be affected by events that will have a bearing on the current stance of the US dollar. Currently, Trump is aiming for a weaker USD value in order for him to upgrade his statements with regards to currency devaluations and other unfair trade policies. The charts are indicating that the USD/JPY pair could possibly rise up to 109.919 points if sellers of the pair would be able to put enough pressure on the market to march through 112.00 points.
 
GBP/USD Fundamental Analysis: February 6, 2017
The GBP/USD pair has been entrapped in a wide range of 400-500 pips during the past few weeks in spite of the fact that the bulls should be well-fed due to the recent strength exhibited by the sterling pound. Unlike other major currencies, which perished instantly the minute the USD showed signs of weakness, the GBP was able to keep its head above water by some sheer innate force present within the value of the sterling pound.
The market is now getting closer and closer to the invocation date of Article 50, which will then commence the start of the Brexit process, and a lot of market players are very thankful that the workings of the Brexit process are now becoming clear as the invocation date draws nearer. This might not be entirely good news, but at the very least this clarity would lend some sense of direction especially for GBP/USD traders. This is one of the reasons why the sterling pound is doing relatively well against other major currencies who are bearing the brunt of the USD’s weakness. The GBP/USD pair briefly traded within its range highs but eventually dropped and closed last week’s session at 1.2500 points and could possibly weaken further although there might be some minor bounces at 1.2400 or 1.2300 points. Any large corrections within this particular currency pair would probably lead to selloffs since the UK’s economic fundamentals are still looking very positive as of the moment.
UK will be releasing its manufacturing production data this week, and the GBP/USD pair would most likely drop further towards 1.2400 and could even become weaker and reach 1.2300 where a reversion is expected in order to put the currency pair within the safe range.
 
USD/CAD Fundamental Analysis: February 6, 2017

The USD/CAD pair had to deal with a very dismal trading movement last week after its consistent uptrend was finally faced with some barriers. The currency pair dropped below 1.3000 for a short period but eventually reverted albeit much weaker than its expected reversions. The market is now becoming concerned that the USD/CAD was unable to fully regain its strength especially since this pair is expected to be subject to more pressure during this week.

This drop in the pair’s value can be largely attributed to the dollar weakness which has become evident in the value of the USD/CAD pair especially since Canada’s economy is well on its way to further improvement and oil prices are now starting to exhibit stability as the oil production cut agreement continues to bode well for all oil economies, particularly Canada. The US dollar has been negatively hit by the various policies implemented by the Trump administration. With Donald Trump now looking at the NAFTA agreement. If the NAFTA becomes suspended, then this would have a negative effect on the economies of all countries involved, such as Canada, Mexico, and even the US. This is one of the reasons why the currency pair’s support barrier at 1.3000 points has been in significant risk during the past week.

The market is now monitoring whether the bulls of this pair would still manage to maintain its hold on this particular barrier especially since the US average wages report came in with very weak readings last Friday which has caused the US market to slump. This week is the Canadian economy’s turn, since Canada will be releasing its employment data and this is expected to give clues on the current state of the Canadian economy. If the pair manages to break through 1.3000, then this could be seen as a reversal in the pair’s current uptrend.
 
AUD/USD Technical Analysis: February 6, 2017

The negative figures from the Chinese PMI affected the commodities declining demand which involves the commodity currencies such as the Aussie dollar. As the US treasury bond yields recovered, the greenbacks got some decent support from it on Friday.

The pair traded with a slightly bearish sentiment last February 3 and come close to its multi-month highs. Meanwhile, buyers found a predetermined level 0.7700 and unable to reclaim it. Therefore, bulls weren't able to sustain their gains and return to 0.7650. The region stalled the progress of the sellers as it secures the prize on its area amid the EU opening. The price slipped through the NY hours on the back of negating its losses on a daily basis. The AUD/USD is confined on top of the bullish moving averages mentioned in the 4-hour chart. Resistance settled near 0.7700, support entered 0.7650.

The MACD weakened which confirmed a weak position of the buyers. RSI consolidated around the overvalued territory. The pair should reach 0.7700 in order to alleviate the bearish bias. Contrarily, a downward movement would likely emerge when the AUDUSD had a dipped at 0.7650 level. A close below the aforesaid mark allows the pair to extend it declivity towards 0.7550.
 
GBP/USD Technical Analysis: February 6, 2017

The British currency was kept in the pressured area on the back of a downbeat data of Services PMI coupled with the stronger stance of the greens.

Th sterling had a steep decline on Thursday after gaining a decent support within 1.2500 level where traders stalled for a renewed market indicators during the Asian hours. A bout of renewed selling interest drove the spot towards a lower position during the post opening of London trades. The GBP moved ahead to 1.2450 after it broke the region 1.2500 amid the American session.

As shown in the 4-hour chart, the Cable leads the 50-EMA to a lower point. While the throughout the European hours, the spot is confined on top of the 100 and 200-EMAs. The 100-EMA advanced higher while the 200 and 50-EMA lies in the flat-lining. Resistance is at 1.2600, support touched 1.2500.

The MACD histogram sits in the centerline. An entry in the negative territory would signal for an increasing strength for the sellers. While, if it entered the positive area, buyers will dominate the entire market. RSI remained around the oversold zone near the neutral readings.

A break under 1.2500 is expected which would imply the continuing phase of a bearish outlook. Furthermore, a downward trend within the 1.2400 level is considered to occur.
 
EUR/USD Fundamental Analysis: February 6, 2017

The EUR/USD pair will undergo pressure this week. Moreover, the NFP report was positive as the average earnings positioned at 0.1% lower than the expected 0.3%. When at first, it is expected for the bulls to take over the market but the trend doesn't have enough momentum bringing the price towards the 1.0800 as a resistance level which was the prior region. The greenback is being swayed because of the uncertainty from Trump and his team to change the policies and cannot be determined the next move of Euro.

The current psychological level at 1.0800 is a significant region and a break in this region could further bring the price towards the 1.12 mark which has been the region for some time last week. The market is trying to break the EUR/USD in the midst of the weakened dollar. At the same time, the market aims to stabilize the current rates but there were not enough support from the administration and economic policy changes and the reports of the economic data.

Although, a majority of the support for the currency supported from the economic data or the administration and at the same time influence the next Fed rate hike. However, it seems that the wage earnings reports are on the lows which could delay the rate hike process. This would put more pressure to the dollar today and this whole week and it is still uncertain until when the dollar rates would hold.

As for today, there will be no major economic news from the Euro or from U.S. regions. It is expected for the price to EUR/USD to remain in consolidation with a bullish bias with chances of a breakout near the 1.0800 level.
 
NZD/USD Technical Analysis: February 6, 2017

The Kiwi against greenback declined on Friday's trading session. A strong support was found at 0.7250 level but was able to reverse the trend after forming a bullish candle while the resistance is found at 0.7350 level. If the price breaks higher than the psychological levels which will then result to a decline to the 0.71 level. Traders should expect high volatility in the market. Hence, fluctuations and rough trading for the pair.
 
USD/CAD Technical Analysis: February 6, 2017

The pair USD/CAD surged on Friday's trading session. It turned around finding a resistance towards the 1.30 level. The price could set into a new fresh low and this could further go down. However, if the price breaks higher than the candle pattern formed on Friday's session, there could be chances for buying opportunities. Traders should monitor the oil market as it has an influence to the Canadian dollar that usually affects the price inversely for the pair.
 
USD/CAD Fundamental Analysis: February 7, 2017

In the past week, the USD/CAD pair has been constantly struggling to hold its own footing in the face of a fast-deteriorating USD value as well as with the recent increase in oil prices. It was the only a matter of time when the currency pair hit the major support barriers of 1.3000, where the currency pair finally saw a reversal in its present trend. The USD/CAD bulls have taken immense advantage of this particular advantage since a lot of them immediately proceeded to defend their 1.3000 region positions.

However, since the value of the USD continued to be consistently weak during the past few days particularly against the Japanese yen, and with oil prices dropping during the previous trading session, the USD/CAD pairs again took advantage of this particular event by inducing the pair’s movement to surge by 100 pips within just a couple of hours, and even though the currency pair has finally settled and now trades just below 1.3100, the market’s outlook on the currency pair has completely turned around and a lot of investors are focused on the pair’s possible uptick, with the 1.3000 barrier becoming the determining point for the currency pair’s future movement.

For today’s trading sessions, the Canadian economy will be releasing its trade balance data and this is expected to inject additional volatility in the USD/CAD pair. However, the currency pair might be in for more ranging and consolidation as the market waits for the pair’s next concrete move.
 
GBP/USD Fundamental Analysis: February 7, 2017

Just like the euro, the sterling pound was also unable to capitalize on the pronounced weakness in the value of the USD even though the NFP report released last Friday disappointed a lot of investors and helped sustain the downward pressure on the US dollar. Under normal circumstances, other major currencies such as the euro and the GBP would have been able to increase their respective values as a response to the USD’s weakness, but then again both currencies are faced with their separate set of problems, from the UK’s impending Article 50 invocation and the Brexit process and the EU’s increasing political tension due to the upcoming French national elections. This has then caused the GBP/USD to drop further in value immediately after the release of the NFP report and has been unable to go past 1.2500 in the past 24 hours.

The sterling pound is expected to remain under immense pressure since the Brexit process is now starting to be implemented albeit slowly, and as May’s plans begin to take shape, a slew of various concerns and other such uncertainties are also expected to come through and put significant pressure on the value of the sterling pound up until the near future. The GBP/USD pair has not made any significant progress in the past trading sessions, and this is expected to remain to be the pair’s short-term outlook.

Since there are no major economic data coming out from both the US and the UK for today, the GBP/USD pair would most probably continue its ranging and consolidation activity with bearish undertones. Market players are advised to monitor the 1.2400 range since the pair could possibly reach 1.2300 if the pair manages to break within this range. Conversely, the 1.2500 should also be closely monitored by investors.
 
EUR/USD Fundamental Analysis: February 7, 2017

The EUR/USD pair maintained its ranging and consolidation activity with a range of 100 pips after it was unable to make a clean break on either sides of the chart. The USD had a weak trading activity yesterday after the NFP report disappointed the majority of investors and erased hopes of the Fed hiking up its interest rates in the near future. This, along with immigration-related problems surrounding the Trump administration has been very vital in affecting the weakening value of the US dollar.

Market analysts had been saying during the past sessions that the EUR/USD pair would continue consolidating unless it manages to go beyond 1.0800 since this will be the only time that the EUR/USD would be making substantial progress. In the past 24 hours, both the US and the European Union were facing their own problems, from Trump’s immigration policies and the Eurozone’s increasing political tension especially with the impending French national elections, with some French parties stating their plans to separate France from the EU once they get in power. This is why the EUR was unable to take advantage of the dollar weakness which could have made some large-scale gains given a wholly different political atmosphere.

There are no major news releases expected to come out from the EU today so the EUR/USD would most likely continue its ranging and consolidation trend for today. The euro would most likely continue to remain stagnant until such time that it manages to make a clean break through 1.0800 points.
 
NZD/USD Technical Analysis: February 7, 2017

The NZD/USD continued to move through the rising channel yesterday. The NZD traded on its recent highs and stayed on top of the 0.7300 level throughout the day.

The 4-hour chart mentioned that the pair rebounded to the 50-EMA and kept intact overhead the moving averages. The MAs (50, 100 and 200) maneuvered an upward direction as shown in the aforesaid chart. Resistance touched 0.7350 region, support pierced 0.7300.

MACD histogram is bullish. It further hovered within the positive zone. RSI continually sits around the overvalued territory.

A bullish outlook dominated on Monday with a primary target 0.7350. A break in the 0.7350 mark generates a possible extension towards 0.7400 range.
 
GBP/USD Technical Analysis: February 7, 2017

The British currency continued to gain losses on Monday on the back of BoE’s no rush decision regarding rate hikes coupled with the Inflation Report since the previous week

The sterling had a mixed trades yesterday. Moreover, the GBP/USD weakened during the morning trades and continued to move downwards.

A renewed buying interest occurred amid opening of EU trades which further provided support to the spot. The cable got a stable position throughout the European session and hold a few pips under the region 1.2500 prior to the onset of NA trading. As shown in the 4-hour chart, the price drove the 50-EMA lower and hovered on top of 200 and 100 EMAs. The 100-EMA is moving northbound while the 50 and 200-EMAs stayed in the neutral stance mentioned in the same timeframe. Resistance is at 1.2500, support sits close the 1.2400 handle.

The MACD approached the negative zone, sustaining this position would indicate a stronger position for the sellers. RSI is confined around the oversold area near the neutral readings.

In spite of the decline that recently occurred, the bullish trend was able to maintain its progress. A close under the mark 1.2500 would signal a renewed bearish outlook and has the possibility to advance towards 1.2400 hurdle. Contrarily, a close on top of 1.2500 would retake a bullish sentiment to the cable pair. The spot is possible to recover in the short-term 1.2600.
 
EUR/USD Technical Analysis: February 7, 2017

The greenbacks brought an impact against the single European currency on Monday. The EUR/USD softened on the back of US recovery following a recent sell-off. Meanwhile, the euro take no attention towards the upbeat figures of the German Factory Orders.

The EUR came in negative subsequent to Monday opening. In case, a break on top of the 1.0800 mark backslid, a profit-taking could take place which would push the spot downwards. The price rebounded the 1.0800 barrier and reached 1.0750 amid EU session.

Sellers were able to resume its gains throughout the North American session. According to the 4-hour chart, the pair tested the 50-EMA. All moving averages (50, 100 and 200) seems bullish. Resistance is found at 1.0750 level, support entered 1.0700 region.

The MACD declined which confirmed weak buyer’s position. RSI moved southward after it departed from the overvalued territory

Technicals manifested a near-term bearish picture and fixate at 1.0700. The 1.0650 support region emerge after the level broke. A break down to 1.0650 could sway an unfavorable market sentiment. However, a positive outlook can be sustained upon a break lower than the aforementioned predetermined level.
 
USD/CAD Technical Analysis: February 7, 2017

The U.S. dollar surged paired against the Canadian dollar on Monday’s trading session as it climbed up to 1.31 handle. The price turned around heading downward from 1.3387 level after it climbed from 1.2968 level which is a form of consolidation for the price. If the price was able to stay below the said level, this signals the downtrend to continue towards the 1.2800 mark.

The uptrend will most likely continue for some time particularly in the short term. The current psychological levels brings a strong support and if the market is able to break below this, the outcome would not be favorable for the greenback. Hence, traders should expect high volatility in the market.
 
EUR/GBP Technical Analysis: February 7, 2017

The Euro against the British Pound declined on Monday. Despite the downfall, the price enough support in the 50-EMA to recover the price trend giving a positive outlook. If the market is able to break higher than the candle formed in the trading session, the price could move again in the upside. Short-term pullbacks may be used as buying opportunities that may switched to a bullish pressure in the market later on. The next target of buyers will be at 0.8850 level.
 
You must log in or register to reply here.
Back
Top