Daily Market Analysis from ForexMart

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EUR/USD Technical Analysis: May 2, 2017
The EUR/USD pair kept the currency pair the same during the European holiday. A bullish pattern is seen although they might wait for the second round of French elections before the pair reaches new highs. The support moves in a downward sloping trend as it reaches the previous breakout level close to 1.0823 level and 10-day Moving average.
The Euro paired against the U.S. dollar hovered with the local lows during the Monday session. The spot declined during the night trades as sellers broke over the 1.0900 support level but failed to pull out off the region. The Technical indicators showing mixed market reactions.
The Resistance level is seen at 1.0900 while the support positioned at 1.0850 level. The EMAs indicates a positive signal to buy this pair while both MACD and RSI reversed. There is an immediate risk found in the lower channel but it would be best to wait to close in a daily level lower than the 1.0850 level before selling the pair.
There is a positive impetus seen in the moving average convergence divergence (MACD) giving a black index print in an upward sloping trajectory reflected. This means the exchange rate will be priced higher supported by the upward momentum RSI and the print at 65 lingers in the upper end of the neutral range that equates to a higher exchange rate.

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GBP/JPY Technical Analysis: May 2, 2017
The British pound against the Japanese yen continues to ascend higher with the risk sentiment moving stronger. The trend moves in an upward direction towards the next target of 145 handle and higher. These figures are significant that moves with a bearish pressure, as the market retest it expecting the price to reverse and buyers waiting in the lower channel unsurprisingly. It may not be favorable to sell this pair since buyers could return in the market anytime to dominate the market. Hence, price reversals could indicate buying opportunities.
The market broke higher than the 145 level gives a positive indication reaching the 150 level for a long term. Although, traders should be cautious of the sensitivity of the pair and high fluctuation that makes long-term trades to be more practical but with higher returns if you think about it especially in a longer duration. The 143 level resides to be a massive support and a reversal that is very advantageous to pose bigger orders. A break higher than the 145 handle is much awaited which would signal a momentum in the pair.

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GBP/USD Technical Analysis: May 2, 2017
The British pound dwindled on its previous highs followed by traders’ decision to sell its stock with higher to value to gain profits. The major declined towards 1.2900 region where the downturn stopped afterwards. The technical indicators showed mixed signals.
Furthermore, the 50, 100 and 200-EMAs exhibited buying signal. The RSI and MACD are trading in the downside. Resistance approached near the 1.3000 level, support touched 1.2900 range.
According to predictions, a break under 1.2900 will generate an area for further negative movement. In line with this possible scenario, sellers are expected to drive the spot towards 1.2800 mark.

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USD/JPY Technical Analysis: May 2, 2017
The USD/JPY provided a bullish sentiment on Monday. A bounced off from the level 111.20 pushed the spot outside the red.
The pair tends to increase throughout the night until the morning. It further moves near 112.00 during the middle part of the day.
Meanwhile, technical indicators owned a positive stance. The 50-EMA have seen to cross upwards the 100-EMA. The RSI together with the RSI increased, en route northwards.
Resistance plunge in the 112.00 mark, support lies at 111.00 region.
Forecast says, maintaining an upward pressure could lead to a breakout within 112.00 region making 113.00 level, the next target of the traders.

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NZD/USD Technical Analysis: May 2, 2017
The New Zealand currency was able to gain higher against its U.S peer during Monday trades, however, encountered some sort of trouble over the 0.69 handle. The market continued to turn around causing a possible drop below the region 0.69 and a long-term downtrend has to remain. Otherwise, a break on top of the 0.6933 mark will lead the market towards 0.6950.
The market decided to sell off but it seems unsustainable which could possibly make a strong rebound.
The NZD appeared to be highly sensitive with regards the general sentiment of the commodity markets. While a cut through over the region 0.6950 would push the market near 0.70 mark but the possibility of this to happen is much lower.
A sharp and temporary pace is probable and part of it came from the May Day celebrations while volumes were light. Considering this, a door for selling opportunity has opened prior the kiwi was beaten up
A monumental risk on rally within the globe is required for a convincing power that this pair could show a buying signal at any moment.

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GBP/USD Fundamental Analysis: May 2, 2017
Yesterday was a very slow trading day for the GBP/USD pair as the market holidays in Europe and Asia left several trading desks vacant, thereby decreasing the amount of market volatility. The currency pair had briefly attempted to test its range highs at 1.2945 points but then eventually dropped in value as the day progressed before finally closing down yesterday’s session at 1.2900 points.
There is little market volatility nowadays in spite of Trump being as crass as usual with regards to his public comments on Twitter regarding US relationships with other countries such as Russia and China, mostly because market players have somehow gotten used to the President’s attitude. As a result, the GBP/USD pair was largely affected since it still has no definite course of action as of late. However, it is only a matter of time before the expected surge of economic data which usually occurs during the first week of a new month. The GBP/USD pair is expected to exhibit more consolidation until all the scheduled economic reports are released within the week, starting from the FOMC minutes this coming Wednesday.
For today’s session, the UK economy will be releasing its Manufacturing PMI data during the EU session, with the said reading expected to follow the recent slew of positive economic data from the region during these past few months. If this indeed happens, then the cable pair could possibly test its range highs yet again within today’s session.

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EUR/USD Fundamental Analysis: May 2, 2017
The EUR/USD pair exhibited a ranging and consolidation during the duration of yesterday’s session. It was a market holiday yesterday in several parts of Europe and Asia, and this is why the market volatility and liquidity levels were on a low during the previous session. In addition, traders are also proceeding with caution since the first week of the month is usually characterized by an influx of economic readings from last month.
These factors were the main reason why the currency pair consolidated within a small range of less than 50 pips. Today could be considered as the legitimate start of the week, and now that there is an expected surge of data coming from last month, the market is expected to undergo some significant volatility for today. The EUR/USD pair ran at 200 pips during the previous week following the results of French national elections, and this is why the currency pair could possibly be subject to corrections, although it has yet to be seen just how significant these corrections would be. The 1.0850 trading range is expected to ward off any corrections at least for the time being while the market waits for the release of economic data this week. The FOMC meeting minutes, the NFP report, and a speech from Yellen will be released within the week which could induce volatility in the pair. However, the market will be looking out for any hints of a Fed rate hike this June and if this does not happen, then the EUR/USD pair could possibly test the 1.1000 trading range.
For today’s session, there are no major economic releases from both the EU and US economy for today, and the EUR/USD pair is expected to undergo a consolidation with bearish undertones for the rest of today’s session.

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USD/JPY Fundamental Analysis: May 2, 2017
Investors on the USD/JPY pair chose to pay no mind to the relatively weak economic data coming from the US and instead shifted its focus on the recent increase in the demand for high-yield assets such as stocks, as well as an increase in the yields of US Treasuries. The USD/JPY pair closed down the previous session at 11.824 points after increasing by +0.30% or 0.335 points.
A drop in the US economy’s inflation and factory rates has put out any possible expectations for an interest rate hike this coming June from the Fed. Meanwhile, the PCE index dropped by 0.1 points last March, the index’s largest decrease ever since September 2001. In addition, the Core PCE Price Index increased by 1.6%, which is its smallest gain since July 2016. US Treasury yields surged yesterday after the US government managed to avoid a possible shutdown after clinching a deal for government funding. Equity prices also managed to climb higher, which also heightened the demand for high-risk assets and diminished the demand for the Japanese yen.
The USD/JPY pair could possibly find more support just as long as there is a demand for high-yield assets. However, the currency pair quickly became range-bound since investors are now bracing themselves for the Fed’s interest rate decision this coming Wednesday. As of the moment, the Federal Reserve is not expected to implement an interest rate hike this coming Wednesday, however the USD/JPY could possibly be influenced by the central bank’s statement tomorrow. Traders are advised to look for any clues with regards to the Fed’s next timing for its interest rate hike.

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USD/JPY Fundamental Analysis: May 2, 2017
Investors on the USD/JPY pair chose to pay no mind to the relatively weak economic data coming from the US and instead shifted its focus on the recent increase in the demand for high-yield assets such as stocks, as well as an increase in the yields of US Treasuries. The USD/JPY pair closed down the previous session at 11.824 points after increasing by +0.30% or 0.335 points.
A drop in the US economy’s inflation and factory rates has put out any possible expectations for an interest rate hike this coming June from the Fed. Meanwhile, the PCE index dropped by 0.1 points last March, the index’s largest decrease ever since September 2001. In addition, the Core PCE Price Index increased by 1.6%, which is its smallest gain since July 2016. US Treasury yields surged yesterday after the US government managed to avoid a possible shutdown after clinching a deal for government funding. Equity prices also managed to climb higher, which also heightened the demand for high-risk assets and diminished the demand for the Japanese yen.
The USD/JPY pair could possibly find more support just as long as there is a demand for high-yield assets. However, the currency pair quickly became range-bound since investors are now bracing themselves for the Fed’s interest rate decision this coming Wednesday. As of the moment, the Federal Reserve is not expected to implement an interest rate hike this coming Wednesday, however the USD/JPY could possibly be influenced by the central bank’s statement tomorrow. Traders are advised to look for any clues with regards to the Fed’s next timing for its interest rate hike.

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USD/CAD Technical Analysis: May 3, 2017
The U.S. dollar against the Canadian dollar broke at 1.37 level during the Tuesday session. The oil market is not performing well which pulls the Canadian dollar along. The psychological level between 1.3.63 and 1.37 is strongly resistive as seen in the weekly chart which may not be favorable in selling the pair.
Besides oil concerns, the Canadian housing market is along being problematic particularly in Toronto and Vancouver area. There is a bubble market over the summer housing market with some of the shadow lenders starting to be affected as it drops to lows. This put the currency under pressure added to the oil market which complicates the situation further.
Pullbacks in the trend could open buying opportunities for the pair with the target of 1.40 level and may reach even up to 1.45 which is already expected for this summer.
However, if the pair breaks lower than the 1.36 handle, it is a sign to sell the pair but could be far from happening. Traders should catch on pullbacks which is would be a wise decision for this pair considering the oil market to trigger the pair to break lower.

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USD/CAD Technical Analysis: May 4, 2017
The U.S. dollar against the Canadian dollar rose on the 4-hour chart and continues to go uphill from 1.3223. If this is sustained, the drop from 1.3757 can be considered an uptrend consolidation and could move even higher towards the 1.3800 region following the consolidation. The major support is found at 1.3630 level and a break in the said level would indicate completion of the uptrend.

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USD/JPY Technical Analysis: May 4, 2017
The U.S. dollar paired against the Japanese yen moved in a bullish tone coming from 108.13 moving towards 112.89 level. If the current uptrend continues then the bullish trend will also persist aiming towards the next target of 114.00 region. The current key support is found at 111.75 and a break lower than the said region would complete the trend. The initial resistance level is seen at 112.90 then 113.30 up to 113.80 while the support level is at 112.45 then 112.00 down to 111.60.
The pair rallied up to 112.64 level as it highest on March 21 and lingered a few pips below the current region. This was supported by the high U.S. data published in the morning this day while the U.S. Treasury yields also rose for few gains. Also, the positive ADP survey that meets market’s expectations and a sustained growth in the U.S. sector maintained a significant level higher than 112.00 when the day started. Although trades has been a little muted in the past sessions, yields rose after Fed’s announcement. The 10-year benchmark rate recovered the 2.30% threshold.
The momentum halted after reaching the 112.60 mark similar to the 100-DMA. The price continuously drops lower than the indicators since the middle of March and recovery in the upper channel would bring higher gains in the next sessions. The RSI indicator held at 74 as seen in the 4-hours chart as it goes upward and sustains higher than the mid-line. The 200-SMA surpassed the 100-SMA but both still lower the current psychological levels.

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AUD/USD Technical Analysis: May 4, 2017
The Australian dollar against the U.S. dollar declined during the Wednesday session as it dropped a whole level. The 24-hours exponential moving average (EMA) dropped abruptly while the 48-hour EMA broke lower than the 72-hour MA which signals a change of the trend in the market. There is a little interest in the market and the trend will most likely go downward. The short-term rally indicates signs of exhaustion close to the 0.7475 level. Traders could wait for an exhaustive candle to form since the pair seems to be oversold in the short term.
The pair dropped as big as an entire level for a straight run which is a pessimistic sign and it is not advisable to buy this pair for now. A fresh new low may form reaching a new low with the market eyeing at 0.75 level in the long-term. Gold market may have an influence over the currency as it moves ahead and traders try to break below the latest support level. The pair could go lower because of the gold market with the $1240 as the ultimate psychological level.
If the pair breaks lower, the Australian currency would drop very low while the greenback rallies that is favorable for most traders. This puts bearish pressure in the market and this could be reversed when it breaks the 0.750 level later on, but not soon.
The trend initially leveled at 0.7310 expanded to as low as 0.7414. A continuous decline could still take place towards the next target at 0.7300 region. The short-term resistance level positions at 0.7465 with the major level seen in the downtrend channel on the 4-hour chart. A break higher than the resistance level indicates completion of the downtrend.

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EUR/USD Technical Analysis: May 9, 2017
The EUR/USD edged lower yesterday at the rear of the anticipated results in the Presidential Elections in France wherein Macron got the victory. While the right-wing candidate, Marine Le Pen got 35% electorate votes.
The drop-off continued in spite of the higher than expected data for German manufacturing and European sentiment. The ECB council still discusses the need for normalization while on the tape.
Moreover, the consumer credit in the United States surge and Fed Evans further tackled the urgency for the reserve system to reach its objectives in inflation.
The pair moved downwards having touched its six-month high last Friday prior the French election. The exchange rate drove back under the current breakout region which is close to 1.0950 and appeared to be the near-term resistance, however, the 10-day moving average was held at the mark 1.0922.
Another resistance was identified within its previous week’s high found at 1.0999. The momentum have seen neutral while the Moving Average Convergence Divergence (MACD) decline which probably indicates a descending positive impetus and consolidation
According to the hourly chart, the major will eased back towards the breakout level, plus testing a down-sloping trendline. The hourly momentum was still negative as the hourly MACD were printed in the red showing a decelerating sloping trajectory that pointed to lower prices.

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GBP/USD Technical Analysis: May 9, 2017
The sterling dealt with some volatile session yesterday after a slash within the top of 1.2950 region and resumed to cut lower. In light of this, the market could possibly pull back through 1.29 handle wherein a significant support level can be found. Further move below will reach the mark 1.2850 and the chance for a selloff remained short.
An ability the break over the region 1.2950 would likely cause the market to make an attempt reaching 1.30 area in the longer term.
Pullbacks are considered as the potential buying opportunities but the significant support is required and the market does not have any reason of not finding the buying pressure in the lower grounds.
The British currency appeared to be bullish while the volatility had a little impact to prevent the longer-term trader in the near future.
A break on top of the 1.30 range will trailed to the longer-term target which is 1.3450 area. Contrarily, expect more as the direction could drive towards a bumpy road.
Moreover, the buyers push the pair near its renewed peaks within 1.3000 amid European and Asian hours. The technicals seem positive as displayed in the 4-hour chart.
Resistance plunge at 1.3000, support entered 1.2900.
Buyers may not be able to advance the GBPUSD higher. Therefore, a side-trend is projected which means short weakening prior the bulls to acquire enough strength intended for another support. A breakout at 1.3000 would set us through 1.3100.