Daily Market Analysis by ForexMart

EUR/USD Technical Analysis: May 8, 2017

The EURUSD softened this week but it performed well on Thursday. It is because of the projection about the employment figures released on Friday. The number have been strong and triggered a “risk on” trades. With this, we have touched above the 1.10 mark, which is regarded a significant psychological level that provided a resistance and support previously.

This weekend talks about the election in France and possibility of the status quo candidate to be elected. This favors the Euro due to the fact that it constrains the concerns about France leaving the Europe.

The technicals showed the 1.10 region will offer a significant number of resistance but during the closing week, the market proved that they are ready for any challenge.

An ability to cut through over the mark 1.10 any time will bounce back to 1.12 area. There is also possibility to talk regarding the 1.15 handle

The EUR/USD established an uneven position lately and the current gap has to resume in order to prompt a bullish tone.

It is projected that a break will offer some support after any reversal or surprise announcement which indicates lots of buying pressure is anticipated within the handle 1.0750.

With that said, the buyers appeared to be in the driver’s seat, it further signaled for a move higher.
 
NZD/USD Technical Analysis: May 11, 2017

The New Zealand dollar surged during the Wednesday session with 0.69 level as the starting point. The 0.6950 gives a strong resistance and it seems that this will be followed by a consolidation. The market might need to push more but if this breaks higher than the 0.6950 level, then this could climb higher probably reaching towards the 0.70 and below.

Reversals might take long to occur despite that there is a high buying pressure below. Although the consolidation could stretch up to 0.6850 level and below matching the current trading levels.

The kiwi is highly sensitive to the commodity market which persists to be volatile. In turn, this also affects the New Zealand dollar. The kiwi is easier to monitor since there is a high demand for ETFs in the whole commodity market which is highly influential to the NZD/USD pair. If the pair breaks out and reach a new high, this opens more buying opportunities. Yet, there is a high volatility in the market that makes easier currencies are traded more in the market right now. The market waits for more blatant indicators in the market.
 
EUR/USD Technical Analysis: May 19, 2017

The greenbacks were able stabilized during Thursday session followed by an earlier downfall due to a weaker U.S. data coupled with the political unrest under Trump presidency allowing the common European currency to break out. The pull back resumed its uptrend action on the back of decline in yields, however, the EMU spreads expanded.

Moreover, the employment rate in France came in better than expected while the officials of the European Central Bank were on the tape knocking around the timing of the potential removal of the bias on easing policy.

The pair obtained a higher high and higher low and continued an ascending trend on price action. The resistance highlighted its peaks on November 8 seen at 1.1299 mark while the support lies around the 10-day moving average.

The exchange rate had broken out amid the week and approached its April highs found at 1.0990 level that go along with the 10-day MA.

The momentum appeared to be positive since the moving average convergence divergence (MACD) histogram formed a crossover signal to buy. It occurred due to the crossover of the spread on top the 9-day EMA. The MACD stirred towards the negative territory and moves to the positive area in order to confirm a buying signal. The index printed in the black alongside the accelerating momentum which drove close to a higher exchange rate.

The relative strength index (RSI) ended over the 70-overbought trigger region, however, were pulled back yesterday and had its position at 60 readings. As the RSI breaks out, it reflected an uptrend positive trajectory.
 
AUD/USD Technical Analysis: May 19, 2017

The Australian currency experienced a volatile session yesterday due to an initial shot higher with gold. But decided to sell off as the market needs for another leg found at the 0.74 handle, the support was found but rebounded.

The market appeared to be slightly mixed-up as of the moment and attempted to estimate the risk of the political uncertainties in Washington DC.

Based on a longer-term perspective, the market needs to maintain a bullish attitude only when the gold markets engage in the rally. It remains to have lots of noise though, a smaller position would be better while the Aussie continued to accelerate.

Meanwhile, charts showed some activity of buying on the dips which could be a good idea in trading in the market.

The level below 0.74 must provide a massive support because a breakdown under this range will generate a negative signal. Consider the potential gap within the upward bias, so it is advisable to hold for small positions on near-term charts generating short-term gains.

In case that we cut through above the mark 0.75, it will favor for a longer-term position. In this point in time, riding the market would let you experience emotional highs and lows.

As indicated in the previous charts and sessions, making money is easy in both directions but the market is currently choppy. It does not offer any signs as of now, causing the participant to endure difficulty in driving the market.
 
EUR/USD Fundamental Analysis: May 19, 2017

The greenback was able to take a breather during yesterday’s session as Trump’s issues stepped aside for the meantime, therefore enabling the US dollar to recover slightly across the board. The EUR/USD pair remains on the positive side of the chart, although the renewed strength of the dollar triggered some minor corrections in the overall stance of the currency pair.

During the past few sessions, the greenback has been under severe pressure after reports that Trump had interfered with Russian investigations, leading several officials to question his credibility as president. This triggered a large-scale selling pressure on the dollar and led to a dollar weakness, along with uncertainties on whether this would affect the country’s economic state as well. As the dollar fell, the market crashed as well. However, the market encountered a small reprieve yesterday after former FBI Director James Comey stated that Trump did not interfere with any aspect of the said investigations. This then triggered a greenback rally, causing the EUR/USD pair to drop by 100 pips from 1.1180 points down to 1.1080 points. This correction is fortunately just what the pair needed since the steady rise in the pair’s value could have become alarming if it did not stop. The pair has since then recovered and is now located at just over 1.1100 points.

For today’s session, there are no expected releases from both the EU and the US economy, and this is why the EUR/USD pair is expected to remain consolidating on both directions of 1.1100 points. The market is expected to remain ranging today as the market absorbs these developments which happened within the week.
 
GBP/USD Fundamental Analysis: May 19, 2017

The GBP/USD pair crashed in value during yesterday’s trading session after it dropped by 100 pips in just a few seconds. This then put to waste the bull’s efforts to maintain the sterling pound’s momentum for it to be able to surpass the 1.3000 range and possibly even 1.3030 points. The cable pair is now located at 1.2950 points, and the market is now monitoring how the cable pair will end its performance for this week. If it ends up on a much lower note, then the pair’s bulls might as well prepare themselves for a hard time next week.

The cable pair started out strong yesterday as the bulls did all their might to push the pair past 1.3000 points since they were basically running out of time and fuel. The UK retail sales data came out as highly positive, and this was enough for the currency pair to advance towards 1.3000 and was even able to reach 1.3030 points. The only thing left for the pair’s bulls to do now was to maintain its position above 1.300 points, but as the NY session began , the GBP/USD pair plummeted through 1.3000 and towards 1.2930 points within a few seconds of the session. Although the reason behind this sudden crash has yet to be determined, some market players are assuming that this could be due to a dollar rally after the market reacted to James Comey’s statement that Trump did not interfere with the ongoing Russian investigations. As of the moment, the cable pair is looking more vulnerable than ever and its bulls are having a hard time recovering its losses.

For today’s trading session, there are no major news releases coming from both the UK and the US economy but the market will be closely monitoring how the GBP/USD pair will be ending today’s session. If the cable pair closes down at under 1.2900 points, then the currency pair could be in for more selling pressure. On the other hand, if it will be able to go past 1.2900 points then the pair could possibly test 1.3000 points again in the short term.
 
USD/CAD Fundamental Analysis: May 19, 2017

The USD/CAD pair continues to exhibit a very steady trading manner during the previous session and seems to be largely unaffected by the currently very high volatility levels in the market. In spite of the recent turmoil affecting the US government and a spike in oil prices, the loonie seems to be unaffected by this and remains trading on both sides of 1.3600 points in a very choppy price action with no indications of a possible change in direction.

The recent surge in oil prices has kept the USD/CAD pair buoyant, and this is why the currency pair has stayed within the reach of 1.3550 points. The pair’s consolidation is expected to continue until the next few days since oil prices have already increased in the short-term. Meanwhile, the greenback could possibly backfoot across the board since the possibility of a June Fed rate hike has dimmed somewhat. If this indeed happens, then the 1.3550 range will become a very critical region to surpass and until the USD/CAD pair goes past this range, then it can be safe to say that the pair’s uptick is most likely to remain in the short-term. Otherwise, the currency pair could possibly revert to its previous range and could resort to a bearish consolidating price action.

For today’s session, the Canadian economy will be releasing its CPI data and retail sales data, both of which are expected to induce volatility in the pair’s price action.
 
NZD/USD Technical Analysis: May 22, 2017

The New Zealand currency experienced a volatile session amid Friday trades as it broke on top of the 0.69 handle. A grasp to the level 0.6950 was highly resistive which is better than all the range for the previous weeks.

A break on top this region is considered significant looking forward through the top of 0.70 mark, this also allows the market to drive higher.

Moreover, the market would likely maintain its volatility and choppiness. The kiwi was highly sensitive against the risk appetite which appeared to be unpredictable at this moment. With that being said, the thought that the NZD will be one of the complicated currencies to trade is possible. The “risk on” sentiment has returned in the market favoring the profits for the buyers.

Moreover, the market will remain choppy and volatile for the next hours and the 0.6880 region below contains a massive support.

The “buy on the dips” will further extend, however, headwinds on top of it are within reach. In this case, the market has to provide lots of trading opportunities intended for the scalpers but the short-term traders will remain to draw attention towards this.

There will be some struggle that longer-term traders will experience, in order to search for a suitable position. Therefore, holding a trade for a lengthy period is difficult as there could probably some real size ongoing.
 
GBP/USD Technical Analysis: May 22, 2017

During the Friday session, the pair GBPUSD remarkably did well since an extreme and rapid price decline occurred on Thursday. While an uptrend is tested, however, a turnaround was carried out promptly.

As the traders calm down, the market eventually break out in the upside hitting the top of the 1.30 region. In the previous trades, a renewed highs were formed and the Britain’s currency would likely look forward through the 1.3450 area that has consolidated in the longer term.

A break on top of the range 1.30 seems significant and the flash crash happened on Thursday still not clear which brought fears to many people. Moreover, the uptrend line amid that sudden drop matters a lot and it appears that the 1.29 mark can be the acting basement of this market.

The choppiness was still expected to continue but the market may indicate a bullish attitude.

The pullback eyes some support within the level 1.30 but a breakout towards a fresh peak would trigger a buying behavior.

The GBP attempted to change its general trend in the upside which could go a long way throughout establishing trend confidence.1

In addition, the uptrend will continue since the moving averages drove to the upside and selling is not an option at all. While a move forward would pave the way for the “buy on the dips”.
 
EUR/USD Technical Analysis: May 22, 2017

The EURUSD ride out a strong Friday session as it broke on top of the mark 1.12. This signaled for a bullish indicator while U.S traders started to buy again the common currency. It further illustrate confidence for the euro, as the “risk on” trade is expected to extend along with the buying dips with a noise identified above it.

Based on the long-term, the market is projected to move forward the 1.15 region, however, we anticipate for some pullbacks. It shows that the market are apt to resumed pushing upwards.

The final session appeared to absolutely bullish for the EUR which probably be the overall trend and had to cool off this territory in the near-term.

The strategy of buying on the dips should be implored since the run-off seems pretty well and this sets the momentum on the buyers’ side, however, the impetus did not last long.

After the pullback, it would likely provide few area where buyer could make a return. The 1.11 and 1.1150 is considered an ideal levels. With this, the activity amid Asian trades has to be seen and we suppose each time a pull back is done, a significant amount of value will be collected within the market.

A break over the 1.15 range is hoped for considering it's the leading among the ree-year consolidation area that have been traded in.
 
USD/JPY Technical Analysis: May 22, 2017

The U.S. dollar against the Japanese yen broke in the upper than stabilize the currency pair during the Friday session. This indicates that the market had adjusted with the minimal risk this weekend which is a positive thing.The trading has been strong which is being monitored by traders and they try to bring the price higher than the 112.50 level. Although, as of the moment, the trend is currently in accumulation. If the market could break higher than the 112.50 level would give a bullish tone in the market and would move the price continue to 114 level. This would even go higher when the Federal reserve decided to bring the interest rates higher and this possibility of raising rates caused selling early this week.

The U.S. jobless claims declined which is one of the major directives of Federal reserve that would most likely impede the interest rate hike. Others would want to be dovish or totally forget about it but it is not plausible to do so as the U.S. has eased monetary for the past years and is not exemplifying expected results. On the other hand, the employment is being tight indicating the strengthening of the economy which would bring the interest rates higher as expected.
 
AUD/USD Technical Analysis: May 22, 2017

The Australian dollar against the U.S. dollar started quite low on Monday sustained trading within the trading range on Friday reflecting uncertainty and approaching volatility. The price closed at .7454 and today’s trading will depend on market activity reacting to 50% at the same price. There are no major reports from Australia and U.S. that caused less activity in the market hoping news that would elicit volatility.

The major trend is moving on the downside as shown in the charts. This would reverse once the market breaks over the .7556 level while a move towards .7329 level signals completion of the downtrend.

The AUD/USD pair is recovering coming from lows on May 9 at .7329 region but hampered by the major retracement area. It is too early to tell that is moving higher following a rally for nine consecutive days.

The main trading range is seen between .7558 to .7329 with a retracement zone from .7442 to .7469. The major 50% level is found at .7454 as it is purchased at a fixed price. The market reaction will determine who dominates the market, either the buyer or seller trying to reach a secondary support level.

If the price moves beyond the .7454 level implying the presence of buyers which could result in a surge for short-term with a Fibonacci level at .7469. Surpassing the said level would elicit further uptrend towards the down trending angle at .7468 that will probably position as a resistance level. It could move towards .7509 then .7521 level.

On the other hand, a sustained move below the .7454 regions implies the dominance of seller. The primary target in the lower channel is at .7442 50% level and a break into this angle would push the price towards .7419 level.

The .7419 level is the major level directing the pair to move higher comes. However, if the pair failed to maintain the level, it would fall towards the .7384 Fibonacci level. Traders should monitor the .7454 region to monitor the price action and determine who leads the market.
 
GBP/USD Technical Analysis: May 23, 2017

The GBPUSD go through a very volatile session during Monday trades, seeing the market to rise and fall due to the large-scale headlines that continually have divergent opinions.

The issue regarding the withdrawal of Britain from the European Union persist and dominates throughout the market, so we should further expect some volatility.

The region 1.3050 above offers some resistance in the near-term, however, there is a possibility that the Cable will be pushed in the longer term. Pullbacks should still be expected but should provide some value. While the level 1.2975 is becoming the support as it keeps on grinding upwards. A cut through on top of the 1.3050 mark signals for the continuous uptrend in the market which also shows that the momentum is already starting. this could be a complicated action however the buyers are currently in the driver’s seat. The choppiness will remain alongside with a bit of an upward bias which could offer an advantage.

Through employing the short-term pullbacks intended for buying opportunities is suitable to gain an edge over the bullish pressure and this could also be the way to reaching the top level of the consolidation area that lies at 1.3450.

Apparently, the market is too delicate to deal with as of the moment and yet, an ascending triangle shows up which mean that there a significant amount of bullish pressure starts to develop.

Recommendations say that the market should refer towards the area 1.32 or much more move near the longer-term charts. Additionally, selling is not a thought by this point in time.
 
EUR/USD Fundamental Analysis: May 23, 2017
The EUR/USD pair has maintained its current price action during the previous trading session as the USD remained on the backfoot yesterday. The EUR/USD pair encountered some minor correction during the course of yesterday’s session and this caused the pair to retreat towards 1.1200 points for a couple of hours, although it eventually became clear that both the market traders and investors were preparing themselves instead for a bullish action in the pair instead of any major correction in the pair.
The pair’s movement towards 1.1200 points remained for a few hours into the trading session yesterday, but then the pair eventually moved out of this particular range and had begun to surpass 1.1200 points in time with the opening of the European session. Germany’s Merkel also made a speech during the session wherein she expressed her concern regarding the weakness of the euro, which has caused a drop in the value of Germany-based goods. However, this was not a surprising fact for investors as this has been the country’s stance for so long with regards to their monetary policy. But investor sentiment is not what the market is focusing on these days since the current market trend is now what the general market sentiment is. This was then seen as a trigger for a surge in the value of the euro, and such, this was followed by a euro buying which enabled the EUR/USD pair to advance towards 1.1250 and even managed to reach 1.1263 points, where it was met with a large-scale selloff. The currency pair remains trading within this particular range, with 1.1300 as the pair’s next medium-term target.
For today’s session, the market is expecting the release of the Flash PMI data as well as the German IFO Business Climate data from the German and French economy, while a couple of Fed officials will be involved in some speaking engagements, wherein they are expected to say that the rate hike schedule next month is off the charts for now. The EUR/USD pair is then expected to trade with a bullish undertone and could possibly test the 1.1300 trading range.
 
USD/CAD Fundamental Analysis: May 23, 2017

The USD/CAD pair has been exhibiting a very disappointing price action ever since it was able to test its range highs at 1.3800 points during the start of this month. The currency pair has been suffering from the repercussions brought about by the greenback’s weakness and the strength of the loonie which was mostly due to an oil price surge. This oil price increase was able to cover up the actual occurrences within the Canadian economy and has provided enough leverage for the loonie to advance, and this is why the USD/CAD pair has been consistently dropping value during the last two weeks.

As of the moment, the currency pair is now within a very critical region of 1.3500 points, where it continues to look very weak. The weakness of the greenback has been the dominant market trend as of the moment, with the dollar getting adversely affected by Trump’s political woes, which in turn has affected the US economy as well as its monetary policy. The market had initially priced in a rate hike this coming June, but with the recent slew of dismal events, it looks like the market’s players might have to put off this interest rate hike at least for now. In addition, the rising oil prices has helped the loonie to retain its positive image amidst Canadian banking concerns, wherein the majority of Canadian banks have been given the thumbs-down by ratings agencies. The loonie strength has also helped to offset the concerns surrounding the HCG and the housing sector.

For today’s session, there are no major news releases coming from both the US and the Canadian economy, although some Fed officials will be making statements today with regards to the US monetary policy. All these are expected to add downward pressure on the USD/CAD pair and cause the pair to test its support levels.
 
EUR/USD Technical Analysis: May 24, 2017

The EURUSD attempted to move through the higher region on Tuesday, however, failed to maintain its gain upon reaching the level 1.1268. When the profit taking started the pair was pushed beneath the 1.12 handle.

Meanwhile, the stronger report of GDP and sentiment data buoyed the EUR/USD and the yields turned up in Europe as relating to its American counterparts. Moreover, the PMI readings kept unchanged in the month of May, as the German nation lead the charge that reflects towards a strong growth.

The major pair touched the higher high as it eclipses the prior day high using 5 pips. The resistance is found at 1.1299 level close to November 8 highs and in case the level will be broken, it would lead to testing 1.1365 region near its August highs in 2016.

The support entered the mark 1.1603 around the 10-day moving average. Momentum is slow-moving, seeing the moving average convergence divergence (MACD) print in the black together with a descending trajectory that drives towards the consolidation.
 
GBP/USD Technical Analysis: May 24, 2017

The GBPUSD appeared to be weak amid Tuesday’s session, however, met some buying pressure below the area 1.30 which helped for the pair to move ahead. The 1.3050 level have a significant amount of resistance and a break on top if it will continue the longer-term trend.

The British currency looks like having an attempt to develop a momentum in the upside but the risk appeared to remain above. Plenty of moving pieces exists around it which could probably allow the headlines to persist moving in the market. With this, it is best to pay no attention towards these headlines and just continue to trade in a market with a technical outlook because this could help you to remove few of the noise. While smaller positions appeared to be necessary unless a “buy on the dips” were offered under this kind of circumstances.

A break over the 1.3050 significant handle will enable the market to trail towards the 1.3450 region considered as a major resistance barrier which can be found in the longer-term chart.

The choppiness should remain as the market will behold the news to be released and it is important to employ stops most of the time, it is also vital to maintain your position size lower.

As of this writing, the sellers are starting to push back. The Cable have witnessed to be a highly volatile pair which might hurt the market.

It is recommended to maintain a small position size and be active since a tough situation may occur every now and then. Selling is ruled out.
 
NZD/USD Technical Analysis: May 24, 2017

The national currency of New Zealand attempted to rally on Tuesday, however, it rolled over. As of this writing, it starts to move near the 0.70 region. In case that the area will be dropped, the market will tend to had a significant roll over while the shooting star begins to form on the daily chart. Having said that, the breakdown beneath the level 0.6980 would likely breakdown the mark 0.6980 below. The NZD will roll over and look for the 0.6925 eventually.

On the other hand, a break on top of the high during the session will indicate a bullish signal as expected, as the market tend to move near 0.7250 area. Alternatively, the market is having a volatile environment as it bears a shaky ride.

The New Zealand dollar is highly sensitive to the commodities and you should be cautious to the general market sentiment because it points further directions.

As the market prepares to conduct a determined plan and you should place a trade based on the breakout on top of the daily range or a breakdown underneath the 0.6980 mark.

Moreover, the Aussie were seen to move on the same path just like the other two pairs which favors the idea of trading with the breakout. And this suggests that it is much easier to drop lower because going up would mean dealing with lots of confusing underlying trends.
 
AUD/USD Technical Analysis: May 24, 2017

The Australian currency against the U.S. dollar broke above the 0.75 level but was also reversed soon after. If the price breaks lower than the 0.7450 region, the price would further decline. This is also similar for the long-term trades.

The gold market directly influences the pair including the risk appetite for these trades. However, it seems that the gold market is not performing well. The raw material trades from Australia supplied within Asia is also falling since there is low demand for copper and iron which are the fundamental trades of the country.

In a long-term trend, it seems that the market sustains the current trading condition. Its downtrend could attain up to 0.70 level for long-term. If the price breaks higher than the 0.7525 region, it could reach its way about the 0.7750 level for a longer term.

However, reaching the said level won’t be easy. Although, the market usually change position in a bullish pattern and makes it more complicated when the market worries. This is what anticipated to happen when the price soars that makes pullbacks not surprising anymore. The uptrend line is noticeable on the hourly chart and a break lower than the 0.7450 level would bring the price down with an increase in bearish pressure.
 
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