Daily Market Analysis from ForexMart

[luisforexmart]

USD/JPY Technical Analysis: October 21, 2016
The USD/JPY pair is currently trading at 104.13 points after increasing by 0.18% during the last session and has recorded a session high of 104.18 and a session low of 103.91 points. The currency pair is already losing its Asian session bid after the USD finally regained some of its lost value. The Bank of Japan’s Sakura Regional Economic Report has expressed possibilities of the yen increasing its pressure and has decreased the economic assessment for the Tokai region.
Analysts are noting how the USD/JPY pair has remained stable all throughout the yield curve control set by the Bank of Japan, with all major Japanese markets such as JPY yields, Nikkei stock index and the USD/JPY experiencing relatively low volatility during the past trading sessions. The lower range for the USD/JPY pair might also be supported by the simultaneous selling off by Japan-based investors.
Since the current trading value for the USD/JPY is at 104.13 points, resistance levels are expected to be at 104.18 points and 104.20 points. Meanwhile, support levels are expected to come in at the 104.14 range and 104.12 and could possibly drop further to 103.89.

[luisforexmart]

GBP/USD Fundamental Analysis: October 28, 2016


The GBPUSD demonstrated an active and ongoing trades on Thursday along with the UK GDP Data release. The GDP release was highly anticipated by profuse investors and the market generally since this quarterly basis is a primary indicator of the economic decline after the referendum was ratified.
Upon the issuance of the data, the pound and greens established a straight route approaching the 1.2240 range. The economic health indicator presented a better-than-expected 0.5% value compared to 0.3% which enable the pair to push towards 1.2270.
The bulls assumed that they could break the above level of 1.2270 but failed to do so. According to forecasts, resistance sits at 1.2280 but there is a tendency that it could manage to its daily high at 1.2273 or the possibility to made an immediate fallback.

[luisforexmart]

EUR/USD Fundamental Analysis: October 28, 2016
The EURUSD pair considerably established a price condition that swings up and down during Thursday trading. The current consolidation period was caused by the waxing and waning of the USD stability. The pair ranges within the 1.0880 and 1.0940 levels which is considered as a decent range characterized by volatility gaps.
Moreover, the pair traded close on its lows at 1.0890 and continuously accumulate its strength as of the previous day. It further broke the 1.0900 level and headed towards the mark 1.0920 hence demonstrated a constant trading proven by negative data of US durable goods.
As the month end flows approaches in the US session , the price made a breakthrough near the 1.0940, the end flows occurred simultaneously with the London Spot fix which is concerned to its remuneration hence the euro and pound coalesce the current situation.
When the London price fixed come off it would cause for the USD stability. The pair were not able to break the 1.0940 level thus it dropped nearly 1.0920. The bonds also mitigated which mainly affected the euro, the EUR plummeted through the 1.0900 and 1.0880 is the worse case possible before it regain its strength and settled at 1.0901.

[luisforexmart]

EUR/USD Technical Analysis: October 28, 2016

The center of attention of the market is on the Initial Jobless Claims and Durable Goods Orders releases. For that reason, there was no major event scheduled in the European Union as per the market calendar.

The pair established a sluggish condition amid the Asian session yesterday. Meanwhile, the price reached the 1.0900 level by which the downward momentum subside. It further strengthens as the pair plunged off the region, enabling the EURUSD to regain its profits during the European trades.

It was shown in the 1-hour chart that the price maneuvered on top of 100-EMA where the euro meets a solid support. The 50 and 100 EMAs kept intact on its recent position while 200-EMA headed southward. Resistance arrived at 1.0950 region, support approached the 1.0900.

MACD expanded and demonstrated weakening against the seller’s strength. RSI prevail in the neutral position.

[luisforexmart]

USD/AUD Fundamental Analysis: October 28,2016
The Aussie is weakening against U.S. dollars because of higher bond yields. Despite the turn of events , domestic deflation was not levied because of the results of CPI were positive and met the expectations even though there was a break in the mean that hampered the downtrend. The miss in the CPI and the October’s domestic employment rate to be announced next week will be considered by the Reserve Bank of Australia while the RBA rate cut next week is almost impossible close to nil.
Aussie is left in an consolidated state because of the expected rate cut which has declined recently added by the desire to shift the U.S. curve higher. Another factor is the presidential election in U.S. which induces potential risks and most likely the Australian dollar will be affected and be strained in the next near term.

[luisforexmart]

USD/CHY Fundamental Analysis: October 28,2016
The price activity of the pair USD/CHY is giving a negative outlook as it forms a steep curve of its market yield beyond the 1.8% critical level of 10-year U.S. Treasury Yield. Following the tangent of the chart, it is expected for an increment in volatility since USD broke higher than the physiological levels overnight.
The People’s Bank of China has a relevant role with the pricing. To search higher numbers to go short should not be the mindset of investors like a game. The market looks like it will be tested at 6.80 level with the target level at 6.7858 that indicates weak longs to end the position. However, sway down to 6.79 support level was seen.

[luisforexmart]

USD/JPY Fundamental Analysis: October 28,2016

The USD/JPY moves in the market following the U.S. yield curve. Investors swiftly reacted causing yen to meet the 105 level with not much of a resistance after the U.S 10-year Treasury yield rallied overnight. A strong gap is being formed between yen and dollar.

Fed pending December rate hike pushed the pair on lows all week. It is possible for the pair to move higher reaching the 104.75 to 105.75 short-term range. However, a break at 106 level is far from happening because of the concerns with Fed rate hike. Weighing the risk-reward, investors are more likely to prolong the dips at support levels within the range of 104.75 to 105 levels.

However, a recovery could happen shortly after it repositioned because of GDP data to be released tomorrow. Economists expect a hike to 2.6% and dollar to remain strong. It is possible for Fed hikes to get lower when unexpected outside forces come in which will have a significant changes to its pricing.The data of core CPI and Unemployment rate had not much of an effect to the pricing. Majority of the price activity will still depend on Central banks of Japan and America.

[luisforexmart]

GBP/USD Technical Analysis: October 28, 2016
The sterling pound was able to acquire some measure of support following the release of a highly positive GDP report for the region. The GBP has now significantly increased in value. However, further profits for the sterling pound was restrained after the USD was able to recover its previous losses.
The GBP/USD remained a few points away from its current support level of 1.2200 during Thursday’s session, with its most recent reversion stalling within the 1.2150 range which caused the pair’s price rate to drop. Meanwhile, the GBP stayed within the 1.2200 range and increased in value during the London session, but the GBP/USD pair slightly weakened during the New York session. The GBP reverted from the 50-EMA within the 1.2200 range and was able to break through the 200-EMA in its hourly chart. The 200 EMA is is exhibiting a downward trend, while the 50 and 100 EMA is currently at the neutral territory. Resistance levels for the GBP/USD is at 1.2300, while support levels for the pair are expected to be at 1.2200.
The MACD technical indicator for the pair is currently at the middle, and an increase in buyer strength is expected once the histogram indicator moves to the positive side of the chart. However, once the MACD enters the negative side, then this will signal a market takeover by sellers. If the sterling continues to weaken, then the GBP/USD pair is expected to go below 1.2200, wherein sellers are expected to move the currency’s value further into 1.2100. On the other hand, the downward pressure on the sterling might be lessened if the pair goes beyond the 1.2300 range.

[luisforexmart]

USD/JPY Technical Analysis: October 28, 2016
The USD was able to maintain its three-month price advantage against the JPY after a positive US Treasury yields data and growing positive expectations with regards to the Fed rate hike in December. Thursday’s session saw the USD increase further in relation to the Japanese yen, with the USD/JPY bouncing back from its previous losses during the last trading session.
The pricing for the pair remained on the positive territory and was able to reach the 105.00 range during the rest of the trading session. The currency pair was able to go beyond its current moving averages and is currently pointing on the higher side of its hourly chart. Support levels for the currency pair is at 104.50, while resistance levels are set at 105.00.
The MACD indicators for the pair is expected to increase, while the RSI indicator for the pair is currently consolidating within its overbought trading range. The USD/JPY pair will have to maintain its value above 104.50 points in order to retain its bullish stance and create more gains for the pair. Meanwhile, if the pair closes down the trading session at 104.50, then the pair is expected to go even lower at 104.00 points.

[luisforexmart]

USD/JPY Technical Analysis: November 2, 2016
The assumptions regarding the delay of the monetary policy of BoJ were bygone just as the regulator made a reduction according to inflation forecasts. The recent news made an insignificant effect against the pair. The upward notion suddenly lose impetus and the pair also dropped its latest highs, making trades within the 105.00 major level amid the EU session.
The price toggle on every level and tried to reach an upside potential causing the sellers to keep an eye over the 105.00 region. Moving averages plummeted according in the 1 hour chart. The price break the entire moving averages then settled in a lower direction within the same chart.
Resistance rested at 104.50 level, support sustained the 104.00 region. MACD lies in the positive territory. The histogram declined which attest a weak position for the buyers. RSI occupied the oversold area.

[luisforexmart]

AUD/USD Technical Analysis: November 2, 2016
As of yesterday, the Reserve Bank of Australia decided to retain its current rate at 1.5% causing the Aussie to reinforce. The regional bank also expected that the economy of the country will further improve for next year. The AUD retaliated over the USD. The price were able to made an increase from 0.7600 reaching until 0.7675. Moreover, the pair had tested the 0.7675 level and headed in the upward which caused for a rate decrease. The price successfully broke the marks 0.7625 along with 0.7650. All moving averages ascended as shown in the 1-hour chart. The 50-EMA intersected the 100 and 200 EMAs in the same chart.
Resistance is seen at 0.7675, support established its position in the level 0.7650. MACD heightened and signaled strength for the buyers. RSI is found in the overbought zone.

[luisforexmart]

EUR/USD Fundamental Analysis: November 2, 2016
The EURUSD is in upbeat momentum while accomplishing its goal to attain more than 100 pips through its daily range. Many factors are to be considered on this major breakthrough including the US Presidential elections, risks in the Fed hike and the upcoming data of the European region which is expected to be positive. However, it is much reliable to entrust technical and fundamental essentials.
In the previous weeks, the pair established bullish tone even it is situated in the consolidation stage. While the assumption about the pair’s maturation came to light yesterday, seeing the euro and dollar earn more than 100 pips within the day. Greater accession happened during the time of US session which is caused by the funds rate hike.
The market also expecting for Hillary’s victory against Trump, in view of the fact that the Democratic Party nominee lead over according to various pollsters.

[luisforexmart]

AUD/USD Fundamental Analysis: November 2, 2016
The Reserve Bank of Australia was hawkish with its monetary policy yesterday while greenback weakened in value influenced by the release of economic data from China and changes in policies of the Bank of Japan. The target of RBA remained at 1.5% which is in line with the current Economic growth and quelled inflation target while the labor market gives melded reports.
The U.S. dollar is on a consolidated state since Friday and was deeply under pressure because of the upcoming presidential election. Moreover, the recent news regarding the emails concerning Hilary Clinton being the U.S. Democratic presidential candidate is allegedly under investigation.
Next week the release of U.S. Federal Reserve is anticipated which is significant as it will be the basis for changes in monetary policies and its the interest rate decision at 1800 GMT. However, it is expected for the interest rates to remain unchanged but will indicate the date of the next rate hike which is said to be in December.
The upcoming presidential election keeps the U.S. dollars to be uncertain and should be monitored closely. The latest polls show that the gap between the Republican candidate Donald Trump and the Democratic candidate Hillary Clinton has lessened which will greatly influenced the market activity which will be bullish whence Clinton won the election as she is being favored by the financial market
The Building Approvals report has been released as 0030 GMT with the target at -2.8% lowered than the prior 1.8%.

[luisforexmart]

USD/CAD Fundamental Analysis: November 2, 2016
The pair USD/CAD remained in the 1.3400 level ranging from 20 pips yesterday’s price activity. There is not much driving force that left the pair to be consolidated in that region. Despite the news regarding the polls of the U.S. presidential election with Clinton leading the the election, the U.S. dollars depreciated while the Canadian remained resilient.
The reports of Canada’s GDP has met expectations at 0.2% although it is lower than the previous month. Since there is not much activity in the market, it moves near the 1.3400 level moving up and down all throughout the day. The Governor of Canada gave a talk yesterday during U.S. session but the topic about monetary policy was not tackled which did not cause much volatility.
Today, the U.S. oil inventory data will be released and everybody is waiting whether the oil manufacturers reduced its production which has been announced by OPEC to happen. This will have an impact to the Canadian economy hence, its currency will also fluctuate.
The Federal Open Market Committee (FOMC) would release its statement which is substantial in the financial market as it will affect its volatility most especially of the potential rate hike this December. These major events keeps the investors from being cautious as they wait and see of indicators in the market activity.

[luisforexmart]

GBP/USD Fundamental Analysis: November 2, 2016
The pair GBP/USD swayed higher than the top physiological range and remained in consolidation with the next move questionable. Despite the weakening of U.S. Dollar against Euro, it is not enough to set momentum for the pair GBP/USD to move uptrend.
The Manufacturing PMI was released yesterday that met the expected numbers but did not affect much the volatility. The pair rallied to 1.2300 level trying to break but remained static at 1.2280 region. There is not much price activity the whole day yesterday and even this morning. The potential risks in the U.S. Presidential election has raised concerns seriously on who will win thus, causing the greenback to depreciate. As for the pair GBP/USD, it remained lower than the 1.2250 mark and could not make it higher.
The disclosing of the Federal Open Market Committee (FOMC) statement would have a significant impact to the financial market as well as the Construction PMI is expected to be released today during the Euro session which is expected to affect the volatility of the market but not as much as the FOMC statement. It is awaited by the market as this would hint on the upcoming rate hike this December.
The pair remains to move in a bearish trend and it is more advantageous to take on a short position when it continues to rally. The market is expected to be volatile with the Brexit concerns and U.S. Presidential election. It is much more practical for traders to be careful with its positions and losses instead of trying to make sense of the volatility.