Daily Market Analysis by ForexMart

[Luis ForexMart]

Technical Analysis for USD/CAD: September 26, 2016

The USD/CAD pair went down slightly last week, plummeting at 1.30 points. The currency pair then bounced back from the support barrier, and if the pair goes above the hammer formed then this would mean a very bullish sign for the USD/CAD, and the market would be able to go over the 1.35 trading range.

The oil market is wielding its influence over the financial market, especially since the CAD has become a proxy currency for commodity traders. However, the oil market in general does not look very promising, and speculators are stating that it is only a matter of time before oil prices would take a turn for the worst. This might cause the USD to increase in relation to the CAD in the long-run.

The market is generally expected to go above the 1.35-point level. However, investors are not expected this to occur anytime soon. Pullback levels might be able to offer some measure of projected value and support, given that the market stays above the 1.30 trading range. Buyers are expected to always return to the commodities market, and an upward pressure for the currency market is now felt especially for the possible breakout which could happen at any point now that the volume has returned to the foreign exchange market.

 

[Luis ForexMart]

Technical Analysis EUR/USD: September 26, 2016

The EUR/USD went up higher during Friday’s trading session as the USD further weakened after the Fed’s decision to maintain its current interest rates. The Markit PMI also went out lower than expected after it took the bulk of the earlier increases in the USD. Resistance levels are currently on the downward side after coming out within the 1.1290 range. Support levels are currently near the 10-day moving average at 1.1206 points.

US Markit PMI data dropped by 0.6 points to go out at 51.4 points for September following a 0.9 point drop to 52.0 points in August. Index is now ranging from 50.7-52.9 for 2016, with September’s levels going at 53.1 points. New index data showed a decrease to 51.0 points from last August’s 52.7 points, its lowest level since December 2015. Manufacturing data also went out lower than expected as compared to similar technical readings of composite EU data.

 

[Luis ForexMart]

Technical Analysis USD/JPY: September 26 2016

In spite of the curve control announced by the BOJ, the dollar and yen were able to take back its position. Currently, the yen established an in demand status while the stocks were discreet consequent to the statements issued by the central bank and the Fed.

The trading price settled near the 101.40 level on Friday. The pair moves in a lowered position and moderately reached the 50-EMA as recorded in the 4-hour chart. The 50, 100 and 200 EMAs ascertained a bearish trend.

Level of resistance can be seen within the point of 101.40, support is identified in the 100.40 level. MACD experienced a sharp decline by which significantly determined the seller's strength. RSI is found near the oversold region.

 

[Luis ForexMart]

Fundamental Forecast USD/CAD: September 26, 2016

According to the movement of the USDCAD, the trading range lied in between the 1.300 to 1.3060 prior to the data issued by the Canada on the same day which will track the movement of the U.S and Canadian dollar for the remaining trading hours. The pair is trading in a very tight range which resulted an unfavorable outcome concerning the country's retail industry. It is expected that the total will reached 0.5% for the sales of retail good but the upshot emerged -0.1% which is the worst rate of the region. This occurrence made a complete surprise for the market because the USDCAD unexpectedly withdrawn its rank. The USD/CAD were able to move over the 1.3060 resistance level, support is determined in the level of 1.3160.

The U.S dollar indicated a slight bullish tone during Friday's trading day, this development enabled the pair to move into a higher position within the point of 1.3180 that created a firm resistance level, thus persist to carry through the 1.3174 for the rest of the day.

The pair is assumed to work slowly in the vicinity of this region which will stand for longer hours today and provided strength for the U.S dollar. Moreover, the pair is expected to obtain a position seen in the 1.3180 for the following days and can trade with a bearish outlook. The given price range is predicted to establish a support in the 1.3140 and below the 1.3100. There is no major new release by Canada as of this day whereby the range will remain its current condition.

 

[Luis ForexMart]

Fundamental Analysis EUR/USD: September 26, 2016

Euro proceeds in a 200 - 300 pips range weeks ago and is expected to keep steady in the remaining days of this month. The EUR/USD pair will continue to move in a bullish way considering that it is a new week which is the last week of September. There is no expected radical change in the market since currency movements this week is an outcome of the trading market activity last week

European banks hope to sustain the range of Euro which is crucial for market recovery since Brexit. However, it is difficult for investors who trade in the same region to afford two currencies wherein both happen to have low values as shown in the charts.

The only affluential news this Monday is the anticipated release of German Ifo Business Climate that concerns Euro this week. This day has a good start and the bullish bias will persist until later this day.

 

[Luis ForexMart]

Fundamental Analysis GBP/USD: September 26, 2016


The GBP/USD pair endured the similar fate with the EURUSD since both pairs are stucked in the same range, however the range spot of the euro and dollar are doubled resulting the GBPUSD to have a greater volatility. The trading range is identified subsequent to the Brexit decision and set between the 1.29 and 1.34. The given range presents a price consolidation because the UK market are still waiting for the official price of the sterling after the Brexit ruling. Considering the fact that the EU exit proceeding has not yet initiated again thus the details continued to be unclear making the pound to settled within the uncertain position. In addition to it, the data of UK have presented a better-than-expected results throughout the referendum which bolster the European economy, for all that they still awaits for the detailed activity for better comprehension of the policy effect. As indicated in the weekly chart, the pair is regarded as safe for the investor to use in trading even on the extreme ranges.

A major news regarding Europe is the update of its current account to be issued on 30th of September. Other news from the United States were assumed not to make any impact to the GBPUSD range.

The pair is expected to trade and set a resistance level of 1.3150. If there is a break occurred, it will enable to move in the 1.3300 up to 1.3400 region.

 

[Luis ForexMart]

Fundamental Analysis USD/JPY: September 26, 2016

Investors in the Japanese yen were disappointed with the Bank of Japan’s plans to reexamine its monetary policies. The reaction to the central bank’s announcement caused an initial double-sided volatility. Investors have since decided that this particular decision will have no bearing on the economy and on the Japanese currency.

The BoJ’s announcement caused the JPY to increase significantly on September 21, but the USD had already started bouncing back by September 23. The USD/JPY closed Friday’s trading session at 100.971 points, going up by 0.211 points or +0.21%. The pair however still closed the week lower by 1.26%.

The USD/JPY pair was also further weakened by the Fed’s interest rate and monetary policy statement, which turned out to be less hawkish than expected. The Federal Reserve did not increase its interest rates this month, but there is still a possibility of an interest rate hike in December.

The USD experienced a downward pressure.due to the Fed’s lowered expectations and the decreased possibility of future rate hikes, which can lead to a lowered appreciation of the USD since the central bank’s decision indicates a slow-moving US economy.

 

[Luis ForexMart]

Technical Analysis AUD/USD: September 26, 2016

Last week has been the strongest weekly gain for AUD/USD since the end of July. It almost go beyond the 0.76 line. Everything was on a stand still as the Fed price hike is still at stake which is reportedly to happen by December.

It is already anticipated for the rates to remain unchanged at 0.25% AUD/USD started at 0.7501 this week which has incremented to 5 pips from 0.7675 after a low of 0.7500. It regained later last week and closed at 0.7608 withstanding a resistance at 0.7692.

This Monday, the Assistant Governor of the Reserve Bank of Australia is scheduled to give statement at a financial conference at Melbourne. This will give indication on the future monetary policy of the financial market. On the other hand, the Reserve Bank of Australia had implemented two cuts this year and another inflation may happen later this year.

 

[Luis ForexMart]

Fundamental Analysis USD/JPY: September 27 2016

The USD/JPY stopped at 0.665 or -0.66% at 100.306. Financiers of the Japanese yen attacked the US investors on Monday as they kept arguing about the BoJ's plan to change the monetary policy.

Despite of the preparation by many investors for the upcoming OPEC meeting and the first presidential debate of the United States, the Yen merchants awaits for the statement of the central bank Japanese Governor Kuroda. As he affirmed last Monday about the readiness of Nichigin regarding the usage of policy tool for the accomplishing the 2% target of inflation.

Furthermore, news released some information during the meeting by which the bank is confident that they will reach their goal, but there are some uncertainties which might leave an impact for accommodating the renewed policy.

The movement of price can be identified upon the debate outcome, considering that this is the major news at this moment.

In case that Mr.Trump got the victory then stocks presumably would be sold-off whereby investors of yen would be safe because it will settle on a higher position.

 

[Luis ForexMart]

Fundamental Analysis Gold: September 27, 2016

A small incremental change closed Gold on Monday. Traders were not expecting for the early sign of weakness after US dollar and US equity markets are traded lower in the market. Adversely, this is an opportunity for metals such as Gold. Sellers domineer trading while buyers are doubting the tenacity of the market after last week’s rally. Up to the last minute before the end of trading session, those on the lookout for bargains benefited from the aberration of the market that move Gold higher.

Monday trading demonstrated inconsistency that continues to sway Gold until investors buy them. The outflow for Gold was brought by short-term pressure that are aggressively seized by investors while sellers are driven because of long liquidation.

The surge of Gold early this year are to hedge funds caused by weakness in the stock market and crude oil. However, there are other options such as Silver, Platinum and Palladium. Until the traders spend big money to gold, the current state of Gold will not change and stop swaying sideways.