Daily Market Analysis by ForexMart

EUR/USD Technical Analysis: June 20, 2017

The EURUSD traded sideways during Monday’s trading session, however, there would be a massive decline when American traders regain the driver’s seat and test the 1.1150 region below. There is a sufficient noise underneath which has to trigger support for short-term market players, at least. A breakdown beneath the region 1.11 appears to be supportive. A cut through down that area indicates the market is able to move downwards reaching the 1.10 mark eventually.

Otherwise, a rebound from this level would search for the next range which 1.12. Be mindful that the pair is expected to be volatile due to some reasons, especially the issue regarding Brexit negotiations.

Different factors affect the single European currency and the pair has high chance to slide down, even if the greenbacks weren't involved. Contrarily, there are rising concerns about the interest rate hike imposed by the Federal Reserve and it remains uncertain but it looks like they will pursue this rate increase. The market is still surrounded by many bits and pieces, hence the choppiness will remain. Ultimately, the focus will shift to near-term trading only, applied in both directions, apparently.

As the EUR/USD continued to be choppy, the pair appeared to unattractive to trade with. But every region could have brought effect towards the market and if you feel impetuously determined to employ this pair, you should be aware of that levels.
 
USD/CAD Fundamental Analysis: June 20, 2017

The USD/CAD pair continues to consolidate within its range lows as the loonie makes another attempt to recover its losses and possibly trigger a bounce in its value. Now that the Bank of Canada is more than eager to help the Canadian economy make a 360-degree turn, the pair’s bulls will be in for a hard time as it tries to induce any kind of price bounce. Should the pair manage to create a bounce, then this should be viewed as a selling opportunity and should not be taken as a trend adjustment.

On the other hand, oil prices are still trading within its bottom rungs and remains weak as of the moment, however the CAD seems to be unaffected by this and has still managed to look very positive and has remained trading in a very positive manner. The CAD will only be able to gain some measure of short-term strength if the oil prices will be able to recover in the short run, and if this happens, then the USD/CAD pair might be able to make a substantial attempt to go beyond the critical range of 1.3000 points. The currency pair has weakened significantly ever since it surpassed 1.3500, with this region signalling a trend shift. The fact that the currency pair is still doing very well in spite of a drop in oil prices and dollar strength just goes to show how much of a change has happened within the price action of the USD/CAD pair. Meanwhile, the economic releases from the Canadian economy has showed consistently positive readings, with the BoC announcing its plans to help keep the country’s economy on the upside.

For today’s trading session, there are no major releases from the Canadian economy, and the USD/CAD pair is expected to range and consolidate on both directions of 1.3200 points.
 
GBP/USD Fundamental Analysis: June 20, 2017

In spite of the Bank of England lending some much-needed support in order to prevent the sterling pound from having a total breakdown, the market is expecting the cable pair’s downturn to return soon since the GBP is currently being surrounded with lots of ambiguity due to the Brexit negotiations. This was what the GBP/USD pair exhibited during the previous session as the cable pair managed to go past 1.2800 points, although a sudden dollar-buying surge caused the currency pair to crash and retreat under the 1.2750 trading range, with the pair now expected to maintain its very weak stance at least in the short term.

As of the moment, the sterling pound remains to be surrounded with high volatility levels, and while the institution of a new form of government is starting to gain some clarity including how the Brexit talks will be panning out, there are still several uncertainties which might not have a definite resolution in the near future. Since the market is very averse to any kind of ambiguity, this put severe downward pressure on the sterling pound. Moreover, the dollar strength has been further augmented by the Fed’s hawkish stance and the recent rate hike, and all of this has put the GBP/USD pair on the brink of crashing. The BoE is currently doing its best to help the pound keep its head above water via hawkish stances, but then again the central bank can only do so much to influence the value of the GBP/USD pair as the pair is still very much dependent on economic and political factors. This is why the cable pair’s recent downturn is regarded as somewhat normal by the market, since the sterling is surrounded by a lot of ambiguity as of the moment. Any reversion in the pair’s value should then be seen as a sell opportunity and should not be immediately taken as a trend shift.

For today’s trading session, BoE’s Carney will be delivering a statement, where he is expected to be very hawkish as part of the central bank’s attempt to support the cable pair. If Carney comes out as dovish, then the pound could possibly become affected by the dollar strength and the GBP/USD pair could sink towards its support range at 1.2650 points.
 
EUR/USD Fundamental Analysis: June 20, 2017

The EUR/USD pair underwent a severe crash during the previous trading session as it was unable to bear the brunt of the dollar bulls’ activity. For the longest time, the USD’s bulls were very reticent and had instead focused on maintaining the value of the dollar as the market kept its attention on both the sterling pound and the euro. The bulls then took advantage of the Fed rate hike which was announced last week.

Although the Federal Reserve has already implemented a rate hike, this has been pretty much priced in by the market and this is why it had a minimal effect on the market in general. However, what set the traders and investors’ teeth on edge was the overall hawkish stance of the entirety of the Fed, including Yellen. This can be clearly seen in the rate announcement of the FOMC, wherein the central bank chose to ignore the recently very disappointing US data and instead concentrated on the country’s economic status. This triggered a large-scale dollar buying spree, although it was unable to reach its peak as the succeeding economic data from the region still disappointed the market, particularly the housing data and retail numbers data. Yesterday’s session was marked with several Fed officials making statements pertaining to a higher chance of the central bank implementing another rate hike just before the year ends. These Fed officials also indicated their support to the ever-improving economic state of the US while choosing to brush off the recent dips in economic readings as minor glitches. This pleased the hawks and the dollar bulls took this as a sign to initiate a dollar buying. This caused the EUR/USD pair to sink from its previous range highs at 1.1215 points to settle at just under 1.1150 points.

For today’s trading session, there will be more Fed officials with speaking engagements later in the day. Aside from that there are no expected releases from both the US and the EU economy. As such, the EUR/USD pair is expected to range and consolidate with bearish undertones at over 1.1100 points.
 
EUR/USD Technical Analysis: June 21, 2017


The EUR/USD traded downwards as it was influenced by the sluggish report from the German PPI along with the tightening of the current account of EMU. Meanwhile, the European Union and the United Kingdom came to agree with the timetable of Brexit talks.


Eric Rosengren, chief executive of Fed Reserve in Boston, further studies about the urge to increase rates.


The pair headed lower, producing a toping pattern which is similar to the head-and-shoulder reversal formation. Prices cut through the trend line support that shifted as a resistance found at the level 1.1165 close to ascending trend line.


An additional level of resistance lies at 1.1187 around the 10-day moving average. While the support entered 1.1109 region shown near the lows of May 29. Moreover, the momentum came in negative and dive lower seeing the Relative Strength Index (RSI) broke down. As the current reading of the index is 48 positioned in the middle of the neutral range.
 
AUD/USD Technical Analysis: June 21, 2017


The Australian currency attempted to initiate a rally amid the day and reversed to sell off. The 0.7575 mark was being tested due Aussie’s actions, hence, it provides a significant amount of support. In case that a breakdown occurred beyond that point, the market will be pushed down through 0.7550 region which is an interesting area in the past.


The market will keep on reaching the 0.765 handle when a bounce happen and when it break into the upside will drove near the region 0.7750.


At the end of the day, the market will continue following its risk appetite and traders should watch closely what will happen within that point. The central bank of New Zealand is expected to release a statement about interest rates scheduled today while the Aussie dollar will seek the same path.


Moreover, gold markets remain to be in a downbeat which can be felt by the AUD as well. With this, players should search for a support below prior the rebound. As the market still have challenging nature to deal with because of the many bits and pieces moving around, particularly the plan of the Fed Reserve to increase rates.
Above all, the pressure brought by the precious metal, gold paired with the general outlook on risk tolerance is projected to wrought a chaotic situation over the market.

In this event, it is complicated to determine where to go next as the consolidation is anticipated to keep going.
 
GBP/USD Technical Analysis: June 21, 2017


The sterling pound traded sideways amid Tuesday’s session and slide downwards reaching the level 1.26. Having said that, the support appeared to large, round and psychologically significant figure. It appeared that the market has the tendency to made a bounce from that area and possibly searching for opportunities to sell around upper regions.


The volatility will continue within this market since news releases are expected to issue from the divorce proceedings of the European Union that will influence many moving pieces in Britain.


At the end of the day, the market will be driven by headlines which seem unpredictable and ineffective while the selloff was fairly drastic, therefore a rebound would likely happen.
A break on top of 1.28 handle enables the market to resume over the 1.30 mark. Despite all of the things that happened, the volatility still has a strong stance and at the same time, lots of question are still hanging on what would happen after.


The British currency would have been influenced by the proceeding making it a complicated environment to deal with. However, as the Fed Reserve will implement interest rate hike further placed bearish pressure on the market. In spite of everything, always maintain a very small position when trading.


A rebound is expected to occur within the 1.26 region in the near-term and appeared to provide support once again like it had done in the past that gave a significant amount of resistance.
 
GBP/JPY Technical Analysis: June 21 2017


The British pound against the Japanese yen moved laterally during the early Tuesday session, followed by a decline reaching the 140.50 level below. This is suggestive to become a relevant psychological level. However, sellers are waiting for a technical breakdown as the market fills the gap in the past few weeks.


The general sentiment of commodities and the stock market should be taken into consideration of the market. If this collapse, this will put a bearish tone in the trend. A breakdown lower than the 140.50 region give a negative implication as it extends towards the 139 level. Volatility will still persist in the market and start to enter the oversold area in the short-term. Overall, the market is currently in a perilous state and requires patience from traders to gain profit in either direction.


This pair is sensitive to risk appetite that makes it important for traders to observe the trend in the stock market and commodities. Furthermore, concerns in Brexit will generate more noise to the British currency as a whole which will have repercussions on the market afterward that should not be neglected. If the pound appreciates, the trend will then be reversed moving to the upper channel.


However, if the currency falls instead, this further weaken traded against the Japanese yen, being the safety currency. Overall, there will be choppiness in this market and traders could get hints on what will happen next through other financial markets.
 
NZD/USD Technical Analysis: June 21, 2017


It’s been a volatile session for the New Zealand currency on Tuesday amid the rally happened, touching the region 0.7270.


The market has to keep on searching for some noise in the market while buyers apparently came back which shows that the grind to the upside will resume in the near future. The market is starting to tighten up and should anticipate for an impulsive trend. This market appears to be very difficult to deal with in the short-term, however, you could perform a different move which is to sell.


After some time, the Kiwi reflects for an impulsive trend which could be difficult to settle funds within the marketplace which contains high risk. Upon getting an important trend, it would be much easy to identify what move should the players will follow.


The range bound market must be maintained as the level below 0.72 offers the bottom and 0.73 above. A slice over the top area would drive the market to an upwards directions and near 0.75 which is the target in the longer-term

A gapped underneath 0.72 handle cause the market to trailed downwards reaching 0.70 mark. Otherwise, the market will just go with the low to the extent that the risk tolerance globally is far concerned, specifically the commodity markets.


Having said that, we should watch closely the general tone of overseas traders along with the very important announcement of New Zealand regarding interest rate statement. In case the result will be hawkish, the market has the tendency to climb upwards.
 
GBP/JPY Technical Analysis: June 27, 2017

This week started with a high volatility in trading the British pound against the Japanese during the Monday session. It climbed in the upper side towards the 142.40 level in the beginning of the session. It seems that the 24-hour exponential moving average is being supportive, however, the volatility of the stock market countered the move that caused the pair to drop.

There is a significant support level found close to the 141.50 region that makes it highly probable for the buyers to return in the market or in the sidelines. On the other hand, the 142.50 level offers a relevant resistance level and it won’t take long before the price breaks out. If the market successfully climbed to the upside, then the next target of the pair will most likely be 145 handle.

Regardless of what happens, there are minor signs of volatility moving forward and open more opportunities with the current buying value. The market is anticipated to break out eventually although there are a lot of factors to consider that makes it complicated to trade this pair.

Not to forget, there are a lot of important factors that influence the British currency such as the ongoing negotiation between the U.K. and the E.U. Moreover, major news will have a big say to the market, influential enough to move the market and bring buying pressure to the market. A pullback from the recent level could further bring tension in the market when buying opportunities arise. It could reach up to 145 handles although, it might take some time to reach the said level.
 
EUR/USD Technical Analysis: June 27, 2017

The EURUSD is trading sideways during Monday’s session, however, met the resistance level at 1.12. A breakdown below that point and touched under the region 1.1175, then spotted a slightly bullish pressure. A cut through on top of the 1.12 handle and a pulled back from that point will see for another support.

With this, the pair is inclined to continue its ascending trend or maybe tried to touch the 1.13 mark in the longer term.

Volatility is still high in the market which would likely cause the single European currency to remain a market that is not easy to trade with, therefore, buying is our only choice.

The “fair value” is found at the 1.12 area and this point should be maintained. Buyers are starting to dominate the market, and there is no reason to stop moving near the 1.13 mark again.

It is possible that the market will continue to provide lots of buying opportunities on the dips in the short-term at least.

The market appeared to be crucial when imposing a sell signal unless we break the region under 1.1170. Ability to breakdown will lead the market towards 1.1125 handle.

A cut through over 1.13 mark, the market will drive going to the top of 1.15 range which is a strong barrier as indicated on the longer-term charts. As consolidation between the bottom of 1.05 and top of 1.15 continues in the past three years.
 
GBP/USD Technical Analysis: June 27, 2017

The sterling pound broke higher during Monday opening and touched the 1.2750 region. A pulled back is done to some extent and eyes support around 1.27 mark. The market, in general, is moving sideways. This could be the scenario for this moment due to lots of concerns about the market, particularly with the British currency along with the negotiations between the European Union and the United Kingdom.

The market has many reasons to become volatile, hence, traders should be extra cautious. A break to the upside will drive the market near 1.28 handle, either way, a cut through on top of it would probably move the market towards the 1.30 area.

In the longer-term, there is a possibility to have a rally but the market should remain its choppiness so the opportunity to move near to the upside could often introduce itself.

At the end of the day, the market has the tendency to aim for the 1.3450 mark, however, it requires some momentum building to went through that range.

Reaching the target in the longer-term has to offer lots of opportunities to obtain short-term dips with value, as well as to acquire benefits from the hawkish tone of the Bank of England.

The market should keep on offering plenty of short-term trading, and maybe the ability to establish a certain type of core position.

The GBP is best in longer-term and it is still best for the pound to take the small position in order to steer clear from a severe dilemma.
 
NZD/USD Technical Analysis: June 27, 2017

The New Zealand currency had declined to a certain extent amid session on Monday but was able to have a great increase upon breaking the top of 0.73 handle. A gapped higher indicates a good sign by which enable the market to continue going upwards.Eventually, we will reach the 0.7350 mark or 0.75 handle.

It is possible that the Kiwi dollar will remain volatile but have an upward bias. The commodity market could support this matter since the NZD serves as a barometer for some types of market, however, the Kiwi appeared to outperform due to various reasons except the slightly positive carry strategy that the market take advantage of.

We continue to search value and pullbacks within this market. After some time, we will move closer the 0.75 region which is considered a long-term psychological Ievel whereas sellers could possibly arrive, however, a slice above that area enable players to ascend reaching 0.80 in the longer term.

Selling the market seems not an option at this moment, particularly after the Monday trading which showed a massive amount of an upward momentum and other resources as regards with this currency.

Trading recommendations

The greenbacks are the most engaging among other currency but pairing it with the NZD is the least thing as this could result in the resumption of finding buyers in the near future which could also push the market higher. Selling is not the first concern when it comes to this scenario.
 
EUR/GBP Technical Analysis: June 27, 2017

The Euro paired against the British pound broke in the channel underneath in the beginning of the Monday session. It gapped the 0.8770 region and rebounded towards the 0.88 level in the afternoon. If the price breaks over the peak for the range of the day, the next target would be at 0.8850 level.

The pair will presumably proceed with the long-term uptrend and if it breaks out to highs for the Monday session, the market could extend another 30 pips quickly. The long-term target would be at 0.90 and higher. Overall, there will be choppiness especially since it is the center of forex traders regarding the Brexit negotiation.

The pair is presently in a long-term uptrend. There will be support levels every so often that makes shorting a bit difficult to push through. A formation of a negative weekly candle would signal the chances for selling this pair since the market has been bullish for quite a long period of time. The uptrend will most likely be favored with the European Union leading against the United Kingdom.

Hence, to buy the dips would be the ideal thing to do and add later on in smaller trades. It accounts short-term trades to be more valuable. Overall, it is anticipated to have difficulty in trading this pair.
 
GBP/JPY Technical Analysis: June 28, 2017

The British pound against the Japanese yen moved sideways during the Tuesday session. It declined a few levels to reach the 142 handle. A break above the 143 level implies bullishness and opens more buying opportunities. The pullback can be beneficial which will most likely proceed to the upside while the Japanese yen is in a sell-off.

After some time, the 145 handle could be achieved which becomes a significant level. A break from the said level will give rise to a more bullish tone in the market but, for now, this is the primary target of the pair. The 142.50 is still supportive and if this is sustained then the trend will even move higher.

There is still volatility in the market but the global risk appetite affects the pair. Also, the pair is inclined to react in a strong stock market, as well as the commodity market. Hence, it seems that the stock market will proceed to increase which makes it more advantageous to go long in this pair.

Moreover, the British pound responds to the major events from London especially when the Brexit negotiation ended. Traders should anticipate more activity and high volatility in the market because of various sudden news across the globe. Nevertheless, the market is gravitating to move uphill instead because of the bullish tone in the trend.
 
EUR/USD Fundamental Analysis: July 3, 2017



The EUR/USD slowed down this morning which anticipates a renewed week this Monday morning. As the week started, it established lots of consolidation, in general, and moving over the pairs while traders will go back to work after the weekend, preparing themselves for a fresh start.


It is expected for an interesting week since this is the first week of July and another month usually contains plenty of data from different countries. During the second half of the week, it is scheduled of many upcoming reports including the NFP and FOMC.

Since the US market has the most number of data to be issued within this week, the dollar is currently in the center of attention. While the market expects to witness some development in data.


The US statistics in the past few months were actually weak as the market assumed that the Federal Reserve will not increase rates last month. However, the Fed choose to continue their plan and ignored the sluggish data. But this time, when the data remained weak, further rate hike might not be possible to implement. As the focus turned to the US dollar, the single European currency let the dollar to take the driver’s seat.


Apparently, the EUR is bullish followed by the increasing data within the euro region along with some strong implications regarding the QE tapering of the European Central Bank (ECB). Taking into account these data, the central bank might consider the tapering in a short while. This could also probably maintain a well bid position for the euro for this day and in the subsequent days.


The level around 1.0440 is possible to generate a strong resistance and was able to hold the price in the near-term. Ultimately, the ISM Manufacturing PMI data issued by the United States will set the week and consolidation should be expected, ranging from the pair on either side of the region 1.04 amid the day.
 
GBP/JPY Technical Analysis: July 05, 2017

The British pound stirred sideways against the Japanese yen during the Tuesday session with the 72-hour exponential moving average has become the floor of the trend. The support level is positioned at 146 region that could extend up to 145 handle. There is a higher chance for buyers to present below as they take advantage of the pullbacks. The 145 level will most likely be supportive in the channel and as long as this level above is maintained, it is probable to continue to move towards the 150 handle which is the next target in the long-term.

Alternatively, a break below the 145 level would push the price lower in the direction to the 144 handle and even much further down to the 140.50 level.

This would be concurrent to the decline of the British currency and a general “risk off” attitude which would add a downward pressure on the market since the commodities also go downhill. Also, this pair is immensely sensitive to the global risk appetite.

Volatility is already assumed from this pair as it is called “the Dragon”. This choppiness could be translated into an advantage after given some time to gain bigger profits. Following the breakout, it is favorable to have an uptrend although pullbacks are also advantageous since the pair moves sideways. This gives a sudden profit from the buildup of momentum over long-term.
 
EUR/GBP Technical Analysis: July 05, 2017

The Euro against the British pound moved laterally during the Tuesday session as it moved to and fro in a calm trading environment. There is not much activity until a new headline has been release from Brexit negotiations that put uncertainty in the market influencing it to move in a single direction on either side.

The 0.88 level moves above the massive resistance and if the market breaks in the upper channel and closes it higher in the daily chart, the next target would be at 0.8875 level and above. However, if the reversal from breakdown from the 0.750 level then towards the 0.7 handle. This market is anticipated to have choppiness because of numerous pressure that affects both currencies.

There is a high level of risk in the market that brings in both buyers and sellers in the market after the reports from Brussels and London. This makes it difficult to hold long-term trades that is assumed to continue its movement in 50 pip increments which are what the market wants to benefit from those levels.

The short-term trading is currently in a fine condition but would be quite harder to hold either bought or sold positions. All things considered, it is best to move at a faster rate and heedful in trading. Small positions are more suitable to trade right now in this market since there is still uncertainty which will most likely continue in the succeeding months.
 
EUR/USD Technical Analysis: July 5, 2017

The euro-dollar pair resumed its downfall while the U.S. yields were able to make further progress on the back of the stronger-than-expected result of the ISM Manufacturing report issued on Monday. The US market was closed on Tuesday due to Independence Day holiday, however, there are few catalysts that stimulate the EURUSD amid balance of the week which includes the United States’ Payroll report on Friday.

The pair headed lower and bound to test the support close to the 10-day moving average found at 1.129. The exchange rate eased from the 1.14 handle which is considered the 1-year high and stayed around 1.1350 region near the peaks of August 2016.

The resistance highlighted the 1.1444 mark. Momentum came in neutral while the moving average convergence divergence (MACD) histogram prints in the black linked with a flat trajectory which suggests some consolidation.
 
You must log in or register to reply here.
Back
Top