Daily Market Analysis from ForexMart

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GBP/USD Technical Analysis: May 16, 2017
The British pound surged during the beginning of Monday session. The 1.2940 level offers strong resistance but returned to 1.29 handle which is starting to position as a supportive level and the market tries to push the levels higher.
However, traders should expect high volatility amid the ongoing Brexit negotiations. Although, it is anticipated for the currency to improve and exceed expectations with the inflation hints seen recently. Both the CPI and PPP from Great Britain are about to come out that affect trading as a whole.
It would be good to form a long-term supportive candle at 1.29 level or even a breakout is much better. If the price break higher than the 1.30 level, the price could move towards the 1.3450 region as the peak of consolidation that the market is trying to gap. On the other hand, if a breakdown lower than the 1.2850 level, it could bring the price down towards the massive support at 1.2750 are down below.
Nevertheless, there will be high volatility in the next few months with the ongoing Brexit process. Overall, the market gives an uptrend direction while it is best to position long-term orders. Although, traders are dubious on the market.

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EUR/USD Technical Analysis: May 16, 2017
The EURUSD trailed upwards on Monday as the European yields gained much strength and drove the yield differential towards the EUR’s favor against the Treasuries which made it possible for the exchange rate increase.
Meanwhile, New York Manufacturing suddenly declines and Italy’s inflation is determined close to the target level of the European Central Bank. On the other hand, the GDP of Portugal bolstered and the economic ministry of Germany was positive based on the growth of the German nation.
The pair climbed higher touching the resistance within the downtrend sloping line found near the level 1.0990. The support came in at 1.0923 region which is the former resistance lies beside the 10-day moving average.
Further resistance is spotted at 1.0760 located within the 50-day moving average. The momentum appeared neutral since the moving average convergence divergence (MACD) histogram prints in a flat trajectory which indicates for a consolidation.
Moreover, the RSI bounced off to the 62 mark that is down to the current peaks of 70 and the oversold level 40.

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EUR/GBP Technical Analysis: May 16, 2017
The EUR/GBP weakened on Monday, however, found another leg around the level 0.8450. A rebound within that level had broken the 0.85 handle above. From there, a resistance is found and a decline is expected
As shown in the hourly chart, the stochastic oscillator touched oversold territory and began crossing and would likely require a pullback.
The pair is known to have limited moves in every single session and it does not surprise everyone, it further moves ahead of the 0.8460 region. The mentioned region is predicted to provide some support which could open doors for a short-term selling opportunity.
The Chunnel appeared to be volatile because of the discussions between the European Union and the United Kingdom.
An alternate scenario involves the breakout in the upside making a clear 0.8515 level which could possibly move higher until it reached the top of 0.86 handle. The market appeared to be choppy lately and we project for a trading opportunity.
A breakdown underneath the 0.8450 mark is negative. The market is viewed to be impulsive on some occasions, however, it offers various opportunities in trading.

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USD/JPY Technical Analysis: May 23 2017
The U.S. dollar against the Japanese yen broker in the lower channel during the early Monday session. Soon after, this was reversed and moved higher towards the 11.65 region. Recently, this has been the peak of consolidation and it not surprising that the fluctuation of moving up then moving down as the market has been tight.
Following pullback, the next support region settled at 111 level which is an area that appeals to buyers that are returning back to the market. Overall, the trading this pair would be choppy because of geopolitical concerns globally, most especially that this pair is highly sensitive to risks. With high volatility in the market, it is advisable to trade around 70 pips for the short-term range.
Traders should employ tight stops because of recent news that shakes the market. If the price breaks below than the 111 region, the next support level would go down towards the 110 handle. However, if the price breaks more than the 11.65 handle, this would rise higher towards the 112.50 level.
As anticipated because of high trading volatility, the price would move forward when it breaks higher than the 112.50 level. Although this will be applicable for long-term orders. For now, the market will most likely consolidate as how it was in the past few sessions. This could open short-term openings that traders could take advantage of.

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AUD/USD Technical Analysis: May 23, 2017
The Australian dollar had a very active session on Monday and broke in the lower channel. It continued the downtrend and fill the gap and reversed after reaching the 0.7425 region and rallied uphill. As the sellers come back, there is a few pullback until enough volume and momentum are seen to break higher than the said level.
The currency is very sensitive to the gold market and it follows its movement over the long-term. However, pullbacks may offer some value as it reaches near the 0.7450 level which has been resistive for some time before. If the market breaks higher than the 0.75 handle, the trend would climb higher towards the 0.80 level although this may take some time.
On the other hand, if the gold market declines, then the next target region would be at 0.74 and below. Breaking this level could go even lower towards the 0.7350. As mentioned, the currency is highly sensitive to the market appetite for risks and traders should look out for it as other assets gains globally and Aussie is anticipated to follow.
There will be high volatility in the market while some traders avoid the U.S. dollar for short-term which would put bullish pressure in the market. Also, traders should anticipate choppiness in the market. A hammer pattern is seen in the weekly charts and is could position at the bottom in the charts.

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GBP/JPY Technical Analysis: May 23, 2017
The British pound against the Japanese yen broke lower but was reversed then directed higher towards the 145 handle. It is now positioned as significantly resistive and a break higher than this level indicates strengthening of the pair. There is a massive support found below which will most likely persist for some time in the long term and traders could gain buying opportunities to this. If the price breaks higher than the 145 handle, it could move higher towards the 146 level and gap again even higher towards the 147 region.
The pair is highly sensitive so traders should be careful and monitor the stock market. If the market moves higher then the pair will follow. If the trend of buying and selling activity rolls over in the stock market, this pair will most likely do so. There is a massive support down below.
If the price breaks lower than the 144 handle, the market could go lower towards the 143.50 level which is very supportive. Buyers could return anytime soon which could further strengthen the support and market becomes very choppy.
This market will be affected by the ongoing Brexit process and with all the ongoing reports. Usually, this pair follows other yen related pairs more than other currencies. Traders should also monitor the Japanese major currency pair to determine the next moves in the following trading sessions.

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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.

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GBP/USD Fundamental Analysis: May 23, 2017
The GBP/USD pair has still refused to join the tumult caused by other major currencies rallying against the greenback. In addition, the market was wrecked by news of a bombing at Manchester, which killed a total of 19 people and has injured over 50 people in its wake, in what has been confirmed as an all-out terrorist attack. Although the reaction of the sterling pound to this particular news has been somewhat muted, it has certainly caused the GBP/USD pair to drop in value, wherein it is not expected to become bullish since the Manchester bombings has made headlines today.
The GBP/USD pair started off yesterday’s session a weak note following reports that the UK government might cancel the Brexit negotiations if the EU officials would implement a lot of harsh conditions. These developments are all expected to maintain the downward pressure on the cable pair as the UK economy enters a very critical period next month due to the oncoming snap elections and the Brexit talks immediately after the elections. However, the cable pair did manage to make a slight recovery during the European session, with the pair reverting to 1.3000 and even managed to test 1.3030 points before being met with a lot of selling and correcting towards 1.3000 points following the news of the bombings. The GBP/USD pair is then expected to remain under downward pressure for the duration of today’s sessions.
For today, there are no major releases coming from the UK economy, while a couple of Fed officials will be making speaking engagements later in the day. Since the recent bombings at Manchester would most likely dominate the international headlines, the GBP/USD pair is expected to remain safely consolidating on both sides of 1.3000 points with bearish undertones.

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EUR/GBP Technical Analysis: May 26, 2017
The Euro against the British pound had a very choppy trading during the Thursday session as the market is attempting to push the price higher which could eventually break later on. There are also some pullbacks seen in the short-term which supports the current trend and gather enough impetus and volume to reach higher levels. If the price breaks higher than the 0.8675 region, the current trend will move upward reaching the 0.88 level that is relevant for long-term as shown in the charts.
Those reversals would gain more appeal to the buyers as it closes near the 0.86 support level which was supportive in the past. There’s an option to wait for a breakout first to lift it higher which implies bullishness in the trend which is beneficial for buyers.
The market is choppy influenced by the two economies and commentaries from both countries bringing a lot of noise in the market. Yet, the trend remains resilient as it is directed upwards although there are pullbacks every now and then. If the price breaks lower than the 0.8550 region, the market is anticipated to roll over. This is most probably because of major events which are usually unexpectedly fast when it happen. Overall, the buyers seem to dominate the market.

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GBP/JPY Technical Analysis: May 26, 2017
The British pound and Japanese yen pair had a volatile trading during the Tuesday session. It broke higher in the beginning but stopped at 145.50 resistance level followed by a decline as it reached the lowest level for the day before stopping by another level.
The market is having a difficult time trading even scalping for 2 pips and it’s nearly impossible to hold onto trade for an indefinite period of time until a new psychological level has been reached. There is a significant barrier seen at 145.50 region so a break higher than the said level would bring optimism for the pair.
In the past few week, the market is trying to reach new highs. A new breakout is needed to lay off the bullish pressure but for now, it is uncertain on what this pair would bring to the table. Hence, traders should be cautious with their next move.
For the long term, there is a bearish pressure, especially for weekly and monthly traders. Recently, the yen related pairs rallies which could affect the overall trend but it is really poor at the beginning as usual but this would switch later on to the upside when traders gain enough momentum.
This pair is anticipated to be choppy and lingers in consolidation between the 144.50 and 145.50 region in the upper side. Short-term trades will be preferred and drive the whole trend. Hence, it is advisable to place orders in smaller positions until a significant break has been achieved when the market activity becomes volatile because of several factors, mainly for geopolitical reasons.

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USD/CAD Technical Analysis: May 26, 2017
The U.S. dollar against the Canadian dollar declined in the beginning of Thursday trading session. The OPEC announcement has been released saying the production cute has been extended for another nine months. Although this is already expected, the downtrend occurs because of the possibility for a sell-off in the oil market as reflected in the hourly chart.
A break higher than the 1.35 region would induce this pair to move higher reaching up to 1.36 handle. Yet, if an exhaustive candle is formed, the market would proceed to a sell-off. The next few sessions are relevant to determine what happens in the future o f this pair.
The OPEC was not as aggressive as expected but the production cut decision is in line with the market’s expectation. Long-term traders would see a buying opportunity to the current condition of the oil market. However, it is safer to wait for a longer rally for the day before doing so, Overall, the market is moving uptrend for long-term which has had a rough trading last week.
It may be best to wait on the sidelines for the next 1 to days before trading this pair. The Moving Averages were not doing well but there is a chance for loonies to soften in the long-term. The 1.36 level is a significant psychological level for long-term to put on hold long-term orders and traders should wait until the current trend has been settled before placing orders.

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AUD/USD Technical Analysis: May 26, 2017
The Australian currency endured an extreme volatility amid session on Thursdays, making a gapped through the top of 0.75 handle and fell lower. In the past few days, it appeared to be interesting due to the weakening of the ascending momentum. With this, the risk of the decline is within reach and in case that the gold markets are able to keep the support around $1250 level, it will accelerate the downtrend.
The market is currently following an uptrend line which positioned under the actual pricing. The market broke underneath the ascending line which could be one of the reasons to extend the decline. When this happens, the level below 0.74 is expected to set off a positive target for many traders.
Moreover, the commodity market should be taken into consideration when it comes to Aussie which includes the copper and gold. The previous volatility of the AUD makes it difficult to hover within this position, it requires a break on top of the current highs or a significant breakdown in order to set actual money to work.
The choppiness is also extended since traders dominate the overall place with regards to the projections on the interest rates in the United States while Asian appeal for base metals from Australia.
A breakdown underneath the 0.7440 range will confirm for a roll over which signaled for a lower pricing, nevertheless, the noise prevails that causes the market to be a tough one to engage with.

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GBP/USD Technical Analysis: May 26, 2017
The British currency ride out a volatile session amid Thursday trades, reaching the top of 1.30 region in the day and rolled downwards substantially. Further support can be found in the uptrend line which reflects for another round of rally.
The market could likely offer buying opportunities for the GBP/USD, however, the actual signal intended for the long-term trading that suggests a move over the mark 1.3050. This implies that the trend will continue until the 1.3450 area that would be the top of the former consolidation region towards the weekly charts in the long-term.
Buying the dips could possibly remain to exist along the way while the trading position shall maintain as small as possible. Since the market will continue to be highly volatile due to remarks from the UK and EU people privy to the British exit.
As things go because of volatility, dealing with the market will going to be delicate and it is important to sustain a small position. This way could be the best idea to go up against any types of risks we may face.
It is recommended to cut in half anything you feel you are comfortable with, so you can employ twice the stop loss. This could help you to stay in a market where uncertainties are extraordinary, however, it appears that buyers in the longer-term will extend its involvement with the Cable as the sterling became oversold at some point.
As the volatility continues, we should initiate to build up higher highs once more including a long position as well. Selling still not an option as we deemed that the absolute floor can be found at 1.2750.

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EUR/USD Technical Analysis: May 26, 2017
The EURUSD is trading in sideways trying to move near the resistance region at 1.1265 mark, however, failed to take its position and plunged amid North American trading hours.
The jobless claims showed tight data during its Thursday’s release and were offset through a dovish tone indicated from the minutes of FOMC meeting issued on Wednesday by the Fed.
The predictions failed to some extent which triggered the Fed to make its final decision on Friday while Fed funds continued to have a strong expectation that the bank will take action.
The pair keeps forming a bull flag pattern which acts a pause to refresh. The price consolidated under the resistance level at 1.1299 near its November 8 highs.
The support approached 1.1132 area close to the 10-day moving average. The momentum appeared to be neutral while the MACD histogram moved downwards indicating a down sloping positive momentum. The RSI further trailed lower from the overbought territory as it prints 67 reading. This is the upper end of the neutral range which suggests for a consolidation.

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USD/CAD Fundamental Analysis: May 26, 2017
The USD/CAD pair has been projected to be highly dependent on the state of oil prices as well as the OPEC meeting held yesterday, and in fact, the loonie skyrocketed in value as the OPEC meeting concluded yesterday’s meeting on a somewhat dismal note as far as the markets were concerned.
The market had initially hoped that the OPEC members would approve an extension of the production cuts since the majority of them are expecting deeper production cuts in the future. However, what the OPEC members did was to extend the production cut deal for another 9 months, with both Iran and Libya given an approval to maintain its current status quo. This turned out to be a huge disappointment for the market in general, and this caused oil prices to drop after a large selloff occurred. This was then especially unfavorable for the Canadian dollar, particularly for the Canadian economy as its fate relies on oil prices. As of the moment, the USD/CAD pair has reverted by 80 pips as the loonie starts to drop in value. The currency pair was also propped up even more by the dollar strength and now the pair is back at its support-turned-resistance level of 1.3500 points. The market will now be monitoring how this pair closes down this week’s session since if it manages to close down at over 1.3500 points, then this is an indicator that the bulls have regained control of the pair and the USD/CAD could possibly be poised for more increases. On the other hand, if the pair closes down at under 1.3500 points, then this means that the bears are now dominating the pair and the market might have to brace themselves for more selling at least in the short-term.
The US economy will be releasing its durable goods data and its Preliminary GDP data within the day, although traders are advised to sit back and wait for the session to close down before making any significant moves.