Daily Market Analysis from ForexMart

[luisforexmart]

GBP/USD Fundamental Analysis: May 26, 2017
The strength of the greenback has been the dominant market trend during the previous trading session. In addition, the bulls of the GBP/USD pair are also having a hard time with regards to keeping the value of the cable pair afloat, which is seen on how the bulls had repeatedly attempted and failed to break through 1.3030 points even though the USD has clearly dropped in value. This development shows just how the bears are slowly gaining the upper hand with regards to taking control of the cable pair.
But on the bright side, the drop in the cable pair’s value was not as much of a crash as initially expected since the pair’s drop has been somewhat slow and steady. But then again the corrections of the pair is now starting to get more significant, while its reversions are becoming more and more shallow, which is an indication that the pair’s bears are indeed taking over the currency pair. The GBP/USD pair was unable to even reach the 1.3000 range as the greenback starts to regain more strength due to the market re-pricing the interest rate hike next month.
For today’s trading session, the market is expecting the release of the Preliminary GDP data and the durable goods data from the US, while the British economy is not scheduled to have any economic releases for today. The GBP/USD pair is then expected to remain under pressure for the entirety of today’s trading session.

[luisforexmart]

EUR/USD Technical Analysis: May 29, 2017
The Euro paired against the U.S. dollar slumped after initially surged in the beginning. The volatility is anticipated to persist because of the possibility for the Federal Reserve to raise its rates. Moreover, the issue concerning Brexit is also problematic while the market is focused on easing of the European Central Bank.
The market will persist to have a choppy trading session although it is seen to consolidate between the 1.05 level as the base and 1.15 level as resistance. When a shooting star pattern is formed indicating a downtrend from here while expecting the 1.10 level to be supportive. There will choppiness in the market with minor consolidation for long-term.
With the presence of volatility, the market should be careful in placing orders and placing stops. The 1.1240 positioned to be resistive while directed to move downward for short-term.
It seems that there is high-frequency trading which is how it is to be in the future. It was one of the pairs that can be traded much easier, but over the past years, there is a lot of choppiness in the market. For the meantime, trading within range is advisable in trading this pair.

[luisforexmart]

GBP/USD Technical Analysis: May 29, 2017
The British pound dropped during the Friday session since nearing election. The election polls have an influence for this pair and there are concerns on how the Brexit will proceed. Nevertheless, this opens potential buying opportunities. There is a massive support found lower than the 1.2750 region which has been resistive before.
If the market was able to stabilize, the market would rush into the area and attempt to reach higher. For now, it seems that the market will go down while short-term surge offers selling opportunity. Short-term traders will have an easier position since the market is in a difficult situation.
The market will most likely move to and fro while the Brexit headlines will continue to be a major concern for traders and the British currency will be heavily impacted bringing volatility in the market. Although, this is somehow beneficial for traders.
Traders should monitor the major psychological levels particularly the 1.2750 level where long-term traders take over the market. There may be a lot of concerns making the market chaotic and traders should be careful not get agitated over this.
Overall, the market should see major volatile moves preceded by the major news. Hence, traders should be careful of their stop losses and reduce typical position size until the market steadies. Trade in small positions and adding more later which are advisable in trading this pair. If the pair breaks lower than the 1.2750 region, there is a possibility for buyers to dominate the market.

[luisforexmart]

GBP/JPY Technical Analysis: May 29, 2017
The British pound paired against the Japanese yen declined during the Friday trading session following the release of election polls much tighter than expected in Britain. Everybody expects the political route the way forward when it comes to leaving the European Union still leaves some doubt in the minds of the people.
The pair is usually sensitive to risk appetite that worsens the selling pressure. As the price breaks through the 143 level, the price would decline much lower towards the 142 handle as the market reaches to the support below. If the price surges from here, this would open more selling opportunities.
Traders should monitor the global risk appetite including the stock market, futures market and the condition of the British government and its currency, as these would affect the pair. As of now, the pair is moving downtrend searching for a significant level at 1.2750.
If the pair is able to stay in the upper region, the current trend could be reversed to find support below. Alternately, the price could decline towards the next significant support at 140 handle. Buyer should look to the long-term charts before placing orders. Overall, the market will be highly volatile and traders might want to consider major pairs related to the British currency for a faster turn around.

[luisforexmart]

NZD/USD Technical Analysis: May 29, 2017
The New Zealand dollar against the U.S. dollar has had a flat trading in early Friday but when the buyers returned, the price rose towards the 0.71 handle and above. Short-term pullbacks offer value in the market as the market tries to reach higher levels.
The 0.70 level gives off massively supportive until the price breaks lower which makes it complicated selling. Buyers will proceed with going long as the market is open climb higher although the pair is still involved with high risks. It is anticipated that the pair will most likely decline from here onwards that makes the pair more susceptible to risks.
There is a strong upward pressure for this pair and volatility would increase even more. The New Zealand dollar is highly sensitive to the overall commodity market that makes is important to monitor the commodity market not necessarily a certain commodity market.
There is high volatility in the market which will reflect in trading this pair. With the political concerns from the Washington, D.C., the pair is expected to be influenced despite its almost daily occurrence. Hence, traders should still be cautious that makes short-term trades more advisable to trade to make through the current problems concerning this pair.

[luisforexmart]

USD/JPY Technical Analysis: May 29, 2017
The U.S. dollar against the Japanese yen declined during the Friday session. It reached the lowest level of 110.80. If it bounced back, this will signal a bullish trend but this would not be easy to attain as there is high-risk appetite especially for this pair. The 110 level gives off a massive support but is the pair breaks lower, the next level would be at 108 region at a quicker pace because there is a still remaining gap that has not been filled.
In the long-term, this pair will most likely go higher although it may take some time since the 112.50 is strongly resistive. A break higher than this region would be beneficial for scalpers to take advantage of bulls interested in the U.S. dollar.
Traders of this pair should monitor the S&P 500 index as this would have a big influence to the pair. If the index rises, this pair follows. Moreover, the chances for a Fed rate hike puts a bullish pressure for the pair. If it did not take place, it might be a problem for the pair although it is most likely that this would happen with its stature at stake.
Pullbacks every now and then offer long-term opportunities but for short-term, this gives off bearish volatility/ This could persist for some time especially with the major events concerning geopolitical problems occurring from Europe and the U.S.
Overall, the pair moves in an uptrend from 110.23 level and a decline from 112.13 will indicate a correction. It is expected to rise again following the correction towards the 113.50 level. The near-term resistance is found at 111.70 and a break to this level would mean a continuation of the uptrend. On the other hand, the support region is positioned at 110.80 and 110.23 and a break from these levels would push the price back again from 114.36 level.

[luisforexmart]

USD/CAD Fundamental Analysis: May 29, 2017
Last week was a very essential week for the USD/CAD pair as the currency pair crashed through 1.3500 points last week. The upward trend of the currency pair started out late last year after the loonie was subject to significant pressure following a drop in oil prices and a slew of lackluster economic data from the Canadian economy. During these past months, the uptrend of the USD/CAD pair was able to resist all the various geopolitical events happening within the international economy and even managed to go past its medium-term target of 1.3500 points.
The currency pair’s next target was then 1.4000 points, but the currency pair only went as far as 1.3800 points before it was met with several selloffs, causing it to retreat to 1.3500 during the past week, which was mostly due to an oil price surge and a returning positivity in the Canadian economy. Although oil prices did drop just before last week came to a close due an OPEC-related disappointment in the market, the Bank of Canada made things a bit better by painting a somewhat positive picture of the Canadian economic outlook, which helped in further augmenting the value of the CAD. The USD/CAD pair was then able to surpass its support levels at 1.3500 and managed to close down the previous week before its support levels morphed into a resistance range. The currency pair is then expected to remain under pressure at least in the short-term period.
For this week, Canada will be releasing its Trade Balance data as well as its GDP data, both of which are expected to give an efficient gauge of the country’s current economic status. The US will also be releasing its NFP report and are all expected to induce volatility into the currency pair which is expected to trade with bearish undertones.

[luisforexmart]

GBP/USD Fundamental Analysis: May 29, 2017
The sterling pound remains to be the weakest in a sea of major currency pairs during the past week after the GBP/USD pair failed yet again to break through the very crucial region of 1.3030 in spite of several attempts to do so. The currency pair remains on the backfoot and has been unable to make any significant progress in spite of a string of very positive economic data from the UK economy during these past few months.
There were no significant economic readings from the UK economy last week and this helped in steadying the value of the sterling pound, although the GBP/USD pair remained under pressure due to the strength of the greenback, which only accelerated throughout the course of last week as the market attempted to re-price the June rate hike from the Fed. The FOMC then tried to augment this positivity by stating that the rate hike was still in the table as far as the Fed is concerned, provided that the US economy continues to throw up some good readings for the market. This was more than enough for market traders, who immediately delved into dollar longs as preparation for a possible interest rate hike in spite of the fact that this will be dependent on the results of the month-end flows for the US economy. The GBP/USD pair remained under constant pressure last week, and its attempts to go past 1.3030 were all immediately met by large-scale selloffs. The currency pair eventually dropped down to 1.2900 and even 1.2800 points before finally settling at just over 1.2800 points.
For this week, the market will be bracing itself for the month-end flows as we enter a new month. This could potentially affect the value of the GBP/USD pair and could even be subject to additional pressure once the UK and the US economy releases a series of essential economic data such as the NFP report and the PMI data. The pair is expected to continue to be under pressure during the first half, while the pair’s value on the second half would most likely depend on the value of the US dollar.

[luisforexmart]

NZD/USD Technical Analysis: June 2, 2017
The Kiwi dollar declined in the day during Thursday trade while testing the mark 0.7050. Despite the choppiness of the market, the New Zealand currency have the possibility to beat the Australian dollar. It does not mean that the market will establish an optimistic stance, rather it will become more resilient. The market will search the level below 0.70 because this holds a nice large figure, however, the release of US employment figures on Friday involves plenty of noise. The market will found the resistance on top of the 0.71 handle and the rally will soon fade away because the mentioned region seems resistive. As indicated on the higher level of the chart, some type of channel are trying to develop.
The NZDUSD is not easy to deal with because it is the least liquid among major pair and when the announcement is made, it would likely to have a violent move. With this, it is suggested to steer clear from the commodity-linked pair as this could lead you to pain if you did not take proper caution. The ability to break down under 0.70 region would break down significantly. It signals a longer-term indicator, either way, it could toggle continually moving a gradual ascending grind.
As the market maintain a choppy stance, lots of opportunities were also offered.

[luisforexmart]

GBP/USD Technical Analysis: June 2, 2017
The GBPUSD tumbled down instead of being tough amid session on Thursday and eyes some support around 1.2825 region and bounced reaching 1.29 handle. The area offered a bit of resistance as it appeared large, round and psychologically significant figure. As shown in the chart, we established a higher low, attempting to make a higher high. A successful move will then enable the market to grind through 1.3050 mark above.
The US jobs number is expected to be release today that could bring a massive amount of choppiness and volatility, therefore, market players should be cautious in any positions they select.
Moreover, patience and small-sized are needed as the market would likely be choppy and might take an unexpected trend due to the announcement. With this, the two mentioned factors can help you withstand and ease off damage. An abrupt market move could extremely hurt the traders since the job figures will either will light or flat. A break over 1.3050 level would reflect another leg or maybe if we touched 1.3450 range. But the market should make an extra effort to gain the area.
In spite of all obstacles, the market will be volatile and stop losses should stand out within the market. Imposing a selling position is ruled out since the region below 1.2750 remains the massive floor of the market.

[luisforexmart]

EUR/USD Technical Analysis: June 2, 2017
The EURUSD slowdown on Thursday, but met some support around 1.12 region to reversed and bounced. The market appeared to acquire support beneath the level causing buyers to bounced back. We further anticipate for the release of job figures from the United States later this day which probably impacts the current condition.
The ability to hover on top of 1.12 handle, the market would move ahead of the 1.13 mark, en route 1.15 eventually, this is the top of the longer-term consolidation level. A breakdown below 1.12 handle enables the market to meet a support underneath 1.1160 range.
Many were confused whether the market will offer some value around the current levels, however, the answer is that the range in the past 3 years suggests that there is still the need to edged higher. Having said that, the market had pullback on the back of the rally and it appeared to be cautious due to employment number because the release is unusual.
After the announcement, we expect for a significant trend in a single direction and it requires keeping up small positions just before the market climb down.

[luisforexmart]

USD/CHF Technical Analysis: June 14, 2017
The U.S. dollar paired again the Swiss Francs has a bearish sentiment in the market. It moves sideways close to the EMA-50 and will maintain a bearish tone when the price lower than the 0.9700 is held steady for the day. The next target would be at 0.9578 level.
However, if the market breaks at 0.9700 level, the price level 0.9812 will be tested and reach towards the 0.9864 region before it moves downward again. The trading range will range between 0.9720 resistance level and 0.9600 support level with an overall bearish trend.

[luisforexmart]

USD/CAD Fundamental Analysis: June 14, 2017
The USD/CAD pair exhibited a very weak price action during the previous trading session as there were no fundamental releases which could help in propping up the status of the currency pair. However, the currency pair might be able to redeem itself within the day once the FOMC releases its rate announcement and statement later on, although this could possibly be more of a downward movement for the pair.
As of the moment, the USD/CAD pair could possibly continue its bearish price action at least until the medium term after the Bank of Canada declared that it will be making adjustments with regards to its overall outlook on the country’s economic and fiscal policies. Moreover, the central bank also hinted at a shift in its outlook with regards to its rates after the BoC decided to resume increasing its interest rates, which is a complete reversal of its current policy of cutting back on its rates. This recent move from the BoC shows the bank’s confidence with regards to the overall state of the Canadian economy. This is also a manifestation of the recent slew of Canadian economic data which all showed a marked improvement within the country’s economy. Although there were some concerns with regards to housing and banking, these were handled almost immediately and has enabled the country’s central bank to maintain its focus on the state of the economy. This has all contributed to the bullish undertone of the Canadian dollar and has caused the CAD to surge in value in spite of a recent drop in oil prices.
For today’s session, the market will be focusing on the FOMC rate announcement, and a hawkish statement from the Fed could cause the USD/CAD pair to correct towards 1.3300 points, although it is likely that this move would be a mere bounce and the currency pair could resume its downward price action with 1.3100 as its next short-term goal.

[luisforexmart]

GBP/USD Fundamental Analysis: June 14, 2017
The GBP/USD pair was finally able to make some significant headway amidst a highly volatile trading session yesterday after suffering from the adverse effects brought about by the results of the UK snap elections. As the Conservative bloc failed to get the number of majority they initially aimed for, this created uncertainties and risks within the market and has put the cable pair under severe downward pressure.
But yesterday’s session served as a breather for the GBP/USD pair as uncertainties within the country’s government formation are now starting to get sorted out, thus enabling the cable pair to push past towards 1.2700 points. The talks between the DUP and the Conservatives has so far produced positive results, and it seems now that this alliance will be maintained at least until the Conservatives need to work on several issues, including government formations. One such issue is the looming Brexit talks, with Theresa May staying defiant and believing that she will be able to push through with the Brexit talks in spite of political turmoil and calls for her resignation from her current post as UK Prime Minister. However, May still has to prepare herself as she will possible be faced by several hostile EU leaders who will want to take advantage of May’s position as well as the UK’s current international standing. In addition, Scotland is again on the brink of instigating another independence referendum, and all of these risks are expected to weigh on the sterling pound both in the medium term and long term. down
For today’s session, the market will be focusing on the Fed’s next move with regards to its planned interest rate hike. If the Fed pushes through with its rate hike, then the market will be looking at the FOMC statement next in order to look for clues with regards to the schedule of the next rate hike. If the statement comes out as bullish, then the dollar could further increase in value and the sterling pound might again drop and could possibly revert to its range lows.

[luisforexmart]

EUR/USD Fundamental Analysis: June 14, 2017
The EUR/USD pair merely continued its tight trading action during yesterday’s session as the market braces itself for the announcement coming from the FOMC scheduled for today. The currency pair had initially attempted to move towards the bottom if its range but was immediately met with some large-scale buys in the 1.1160-1.1180 range, prompting the currency pair to revert to its original range.
During the previous session, the most important region for the pair’s bulls and bears was the 1.1200 trading range, with the currency pair managing to close down yesterday’s session at just over this particular range. However, this would all be futile if ever the Fed decides to implement another interest rate hike and release a very hawkish statement. As of the moment, the market has priced in a 90% possibility of rate hike, with the Fed neither confirming nor denying rumors of a possible interest rate hike. The market has taken this as a positive signal from the Fed as far as the rate hike is concerned, and this is one of the reasons why the EUR/USD pair is now trading within its range lows paired with somewhat tame bounces in between as the USD continues to hold on to its current value. Now that the rate hike is already priced in, the market will now be shifting its focus towards the FOMC statement, where the central bank is expected give clues with regards to the next rate hike. The next scheduled rate hike was initially scheduled to be implemented this coming September, however a series of negative data from the US economy has caused doubts on whether the central bank will be indeed pushing through with the next rate hike.
Aside from the FOMC rate announcement, the US economy will also be releasing its retail sales data and CPI data, both of which are expected to induce volatility levels into the EUR/USD pair. However, since the market will be focusing today on the rate announcement, a volatility surge is expected right after the release of the FOMC statement.