Daily Market Analysis by ForexMart

[Luis ForexMart]

Technical Analysis USD/JPY: September 28 2016

The announcement made by Haruhiko Kuroda caused the Japanese yen to make a firm trend. Kuroda talked about the availability of the tool in order to gain the additional 2% inflation rate while the central bank ascertained that they approved the implementation of the stimulus increase if necessary.

The ascending movement run down in a moment reaching the 101.00 by which brought a price change. The pair had declined that also affected to lose its previous gains. The dollar and yen made another attempt to suspend the 100.40 level. As shown in the 4 hour chart, USD/JPY is under the selling pressure of the 50-EMA, at the same time, moving averages are in a lower position of the same chart. Resistance can be seen over the 101.40, support is identified in the 100.40 level.

MACD strengthened the sellers strength though it sustained its previous status. RSI is consolidated in the negative area.

 

[Luis ForexMart]

Technical Analysis AUD / USD: September 28, 2016

The AUDUSD remained under pressure since Monday whereas the trading price had an upward slope from 0.7612 to 0.7698. The buyers were able to control the market with more than 80 pips. This development aided the bullish investors to supplement profits.

At present, the price bounced off to 0.7672 by which derived within the 0.7649 level. This appreciation is the major turn of the pair that is a positive indication granted for the buyers so that they can have much control to optimize prices.

Predictions about the stochastic oscillator that established a bullish trend around the 40 level has greater possibility to happen. It is recommended that buyer's next target will be in the level of 0.7709 seeing that the pair recently had a price hike.

 

[Luis ForexMart]

EUR/GBP Technical Analysis: September 28, 2016

The price channel of EUR/GBP pair is getting stronger shown by statistics last week. Both Stochastics and EMA moved relatively and a fairly strong reversal is expected to happen. This gives a positive outlook to the currency pair.

The pair moves upward even higher than the past few weeks and this is expected to keep on. Although, it seems that the reversal has already began that could result to a gush on sentiments by the second half of this week. The recent bearishness pushed the H4 Stochastic oscillator into the oversold area and the EMA lingers to be bullish. Hence, the selling pressure was reduced early this week and to continue to move upward. The H4 chart is hinting a recent downtrend implies that there is still a plausibility to gain momentum.

It could reach as high as 0.8760 level while if it goes a low as 0.8721 indicates an agile resistance. Fundamentals are relevant to move beyond the zone of resistance and investors should be careful with this when it reaches the 0.8721 mark.

The technical bias for this pair should remain a bullish trend from short to long term as well as the anti-GBP sentiment because of Brexit. However, a major change in sentiment could take place after the scheduled commentary from the European central bank.

 

[Luis ForexMart]

GBP/USD Fundamental Analysis – September 28, 2015 - Forecast

The GBP/USD had a significant dip of 27 points while the U.S dollar continually ascends. The price of the pounds is 1.5214 but no good to climb over the greenback that is much stronger as of today. The dollar established its stronger position after the speech of Yellen held last Thursday. On the other hand, the sterling pound had a positive improvement compared to its previous two-week low against the dollar, though the GBP loss 2 percent as of this week.

Among other main central banks, the Bank of England almost rack up the Federal Reserve since they don't have much record of lows but due to the zero inflation rate of UK the reserve bank lose its hope to reach its goal.

Furthermore, deputy governor Jon cunliffe stated that the build up of price pressure would not aid the British economy, however, the following rates of interest have the capacity to improve the country's current economic situation.

 

[Luis ForexMart]

Fundamental Analysis for USD/JPY: September 29, 2016

The Japanese Yen decreased its value during Wednesday’s trading session, causing the USD/JPY pair to increase its value by up to 0.257 points or +0.26% to close at 100.67 points. The increased demand for commodity currencies and stocks was caused by a report that OPEC had already consented to decreasing its overall output, which last occurred in 2008. Reliable sources from OPEC are saying that the organization would be reducing its oil outputs to 32.5 million barrels daily from its current output of 33.24 million barrels a day.

The USD started strengthening earlier during the session after a recovery of European equity markets increased the risk appetites of investors which then removed their focus from the safe haven currency. The USD/JPY benefitted from the wide-range risk-on sentiment after the statement from OPEC increased activity in the US stock market.

The US market surged primarily due to statements from Fed and a highly durable US goods report. Core Durable Goods Orders data decreased by 0.4% in August, going way below the expected reading of 0.5% and even lower than the expected July reading of 1.3%. However, DGO data was slightly better than the estimate of -1 and went significantly lower than July’s prediction of 3.6%.

 

[Luis ForexMart]

USD/CAD Fundamental Analysis: September 29 2016

As mentioned in the yesterday's forecast, the USDCAD cannot overcome the 1.3240 in spite of its effort. It is expected that the pair would suffer from indecision and reverse movement under this level while the stock exchange anticipates the latter price actions.

Looking forward for the next direction, came in big announcement from Algiers. The overall market did not foresee any impact beforehand because the participants already departed from the meeting and many thought that the session were like consultation rather than finalizing a decision. However, producers released their rulings regarding the cessation of the national output because they would focus more in the oil prices that have seen collapsing.

This resolution would be a great help for the economy of Canada, considering that the price of crude oil has a significant relation to their area of production as well as to the CAD per se. In spite of the positive news regarding oil, the pair is kept in the bullish position. This issue is difficult to recede as some of the experts had said. They also believe that the pair would still feel the effect for a few more weeks by which the economy still weakens as well as the Canadian dollar while the USD CAD will take a bullish trend.

Today, the pair is speculated to obtain the support within the 1.3000-1.3040 zones. The resistance seen in the upper region and lied over the 1.3150.

 

[Luis ForexMart]

GBP/USD Fundamental Analysis: September 29, 2016

Yesterday, the pair GBP/USD is in tranquil both in the Asian and European market while everyone waits for what is gonna happen next regarding speeches from Fed and European Central Bank. Despite the a big deal is about is expire that limited the price movement.

At 1.3000 the whole day yesterday had a bullish market and is forecasted to continue this day. The speeches did not give any concrete changes regarding monetary policies and still reticent with their decisions. The pair moved between 20 pips fluctuating higher or lower than 1.3000.

There is no major news in UK that is expected except the sudden report regarding oil producers meeting in Algiers. The goal is to reduce oil production to stabilise it and prevent from further downfall. This was unexpected that brought riskier assets causing Yen to ebb as well as Gold.

The pair moved as high as 1.3060 in bid and a high demand in selling that dropped down the prices to 1.3021.The bullish market will continue today as well as the support to 1.3000 and expected upside target of 1.3100 to 1.3160. Prices will not be affected as much and will depend more on technical and overall outflow in the market.

 

[Luis ForexMart]

Technical Analysis for GBP/USD: September 29, 2016

BOE deputy Shafik’s dovish statements has caused the sterling pound to be weighed down, after Shafik stated that the central bank requires more economic stimulus, and the bank is willing to widen its asset purchase program if ever the need arises.

The technical trend for the currency pair is mainly bearish since a lot of sellers are holding fast to their current positions. The GBP/USD exhibited volatile and low trading points during Wednesday’s session, with the price staying within the 1.3000 range for buyers. The pair’s growth was somewhat hindered by a bearish 50 EMA, while the 50, 100, and 200 EMA are still steadily declining. Resistance levels are currently at 1.3000 while support levels are at 1.2900.

MACD levels are presently in the negative side, with MACD’s growth indicative of a weakening of sellers’ positions. Meanwhile, RSI levels are expected to go within the overbought range. The general outlook for the currency pair is bearish, with an expected drop towards the 1.2950 range. However, speculators are also expecting an upsurge to the 1.3100 trading range.

 

[Luis ForexMart]

Technical Analysis for EUR/USD: September 29, 2016

The EUR/USD pair had an ambiguous stance during Wednesday’s trading session as investors and traders are waiting for statements coming from the European Central Bank and and the Federal Reserve. However, none of the two central banks are expected to release new modifications, which leaves the EUR/USD pair at a lower value than the previous trading sessions. Fed Chair Janet Yellen has already stated that there is no definite period as to when the Federal Reserve would be increasing its interest rates. On the other hand, ECB Chair Mario Draghi has stated that the central bank’s negative rates are not the ones to be blamed for problems in the European banking sector.

The Durable Goods Orders data came out without much activity, even falling below the expected data release in August. The DGO report has also showed that capital equipment shipments had already decreased in value four months in a row, and investors are expecting that this will lead to a drop in Q3 GDP rates.

In general, the EUR/USD pair has been struggling to make progress during this week. The pair’s 4-hour chart indicates that its value has been unable to go above its moving averages. Momentum levels are expected to go south and below the 100 level. Meanwhile, RSI indicators are in the 47-point range and is leaning towards the negative. Selling interest are now below 1.1190 and this could make the currency pair go even lower at 1.1120 during the next trading sessions.

 

[Luis ForexMart]

AUD/USD Technical Analysis: September 29 2016

After a positive performance made by the AUDUSD, the pair is currently in the period of consolidation together with the formation of the inside bar pattern. If the pair ended with the same price range until the closing trades, it will indicate a resistance pointing at 0.7695. Support is also based upon the result of the low direction held yesterday which is seen in the 0.7611.


The inside bar measured 84 pips by which traders are allowed to use for a bearish or bullish plan. The bullish target is close within the 0.7779 region while the bearish can be spotted alongside the 0.7527. Through employing the half of the range it is possible for the traders to reach a 1:2 ratio of risk and reward if there is a failed break occurred. In addition to it, tradesman should be cautious with Aussie and US dollar because consolidation is still possible to persist.