Daily Market Analysis by ForexMart

[Luis ForexMart]

EUR/USD Fundamental Analysis: December 8, 2016


Despite of the lively U.S session, the EUR/USD is seen consolidating and develop a wide-ranging day on Wednesday. Meanwhile, the Asian and London hours seems a little gloomy following the softening of the dollar which affected the overall market. This further pushed the pair towards the higher level of 1.0750. During the New York trading session, yields had a dipped which caused the weakening of the USD. As the pair failed to broke the 1.0680, bulls enliven and try to lead the pair to a higher position.

Currently, the pair is resting and continued to consolidate as it waits for the ECB’s news announcement with the press and the ECB rate to be held within this day. Small talks were present in the market as they discuss the possible procedure and fixed date to be imposed by EU central bank in stopping the QE program. In spite of the fact that this monetary policy seems hard to stop in an instant, by which the market questions for the bank’s plan in handling Quantitative Easing programme. Moreover, Draghi’s statement are anticipated as to how he will manage the QE.

 

[Luis ForexMart]

NZD/USD Technical Analysis: D ecember 8, 2016

The NZD decreased in value as dairy prices surged, while the RBNZ governor gave no particular hints with regards to the New Zealand economy in his latest parliament speech. The NZD/USD pair maintained its neutral stance during the previous trading session, with the NZD attempting to correct during Wednesday following a slight selloff last Tuesday. The currency pair encountered strong support levels at the 0.7100 range and was able to reclaim the majority of its losses. However, during the London trading session, the recovery streak of the NZD was stopped at the 0.7140 region.

The value of the NZD/USD pair increase and eventually tested the 200 EMA in the pair’s 4-hour chart, with the 100 and 200 EMAs remained neutral and the 50 EMA is currently exhibiting an upward trend. The resistance levels for the NZD/USD pair is at 0.7150 points, while support levels for the currency pair is expected to come in at 0.7100 points. The MACD indicator for the currency pair surged, signalling an increase in buyer strength. The pair’s RSI indicator also increased and confirmed the recent surge in buyer strength.

If the NZD/USD manages to go through 0.7150, then this could induce the pair to reach further resistance levels at 0.7200 points. The currency pair could also possibly hit 0.7250 if the pair breaks through 0.7200 points.

 

[Luis ForexMart]

EUR/USD Technical Analysis: December 9, 2016


The policy interest rates of the European Central Bank kept unchanged while the QE program extended is extended until April 2017. The single currency jumped from the 1.0850 region and made a dip in the 1.0650 amid American session and mixed trading on Thursday. Meanwhile, the pair successfully broke the area of 1.0750 during the annual trading as it continued to expand its vertical slope. The pair gained strength in the opening of the EU hours and tested the 1.0800 level. The buyers are able to push the price higher towards the 1.0850 handle. Upon the opening of the NY session, the EURUSD suddenly exhibited a reversal.

The price further rebounded in the 200-EMA as shown in the 4-hour chart, while the 50-EMA pass over in the 100-EMA with an uptrend. Both 200 and 100-day moving averages still exhibited a bearish slope, seeing the 50-EMA to rise.

The resistance touched the 1.0650 mark, support sits around the 1.0600. The MACD indicator grew less, favoring strength for the sellers. The RSI bounce back through the overbought position and shifted southwards.

The medium term and positive sentiment are expected to be neutral upon a correction below the 1.0700. The pair will probably drop towards 1.0550.

 

[Luis ForexMart]

GBP/USD Technical Analysis: December 9, 2016

The housing price balance in U.K is in upbeat for the month of November, this data had supported the British currency. Likewise, the pound was able to strengthen against its American counterpart and persist to recover. The market structure maintained its bullish place on Thursday. Moreover, the sterling heightened as it was able to regain its few losses acquired earlier this week.

During the Asian session, the pair turns away from the 1.2600 level. Afterward, in the EU opening, the GBPUSD tested the 1.2700 region and remain to take its ascending trajectory. The traders find the level of 1.2700 seems tough to make a clear break. Prices bounced back and headed south and faded its daily gains.

According to in the 4-hour chart, the GBP bounced off through the 50-EMA. All moving averages preserved its bullish bias. Resistance is positioned in the 1.2600 region, support touched the 1.2500. The MACD histogram lies in the central point. An entry in the negative zone will indicate strength for the sellers. The positive area is the buyers hope to dominate the overall market. RSI shifted downwards.

 

[Luis ForexMart]

USD/CAD Technical Analysis: December 9, 2016

Despite of the positive data from the New Housing Price Index and Building Permits, the loonie still moved downwards, seeing the American dollar to gain additional strength. Yesterday, the pair headed southwards. After the USDCAD broke the 1.3260 level, the greenbacks expanded its losses through the 1.3190. The price procured few pips and stop on top of the level as it continued to initiate a consolidation phase. As indicated in the 4-hour chart, the price establish its position below the moving averages. The 50 and 100 EMAs pass over the 200-EMA in a downward direction. The 200-day moving averages is neutral as the 50 and 100 directed lower. Current resistances is seen in the 1.3260, support is at 1.3190 level.

MACD histogram is trading in the downside of the market. RSI remains oversold. It is expected for the market to be bullish when the pair consolidated over the 1.3250 handle.

 

[Luis ForexMart]

USD/JPY Technical Analysis: December 9, 2016

The Japanese yen depreciated against the U.S. dollar because of the decline of GDP of the country. An increase in tension for greenbacks after the ECB decided not to changes its current monetary policy that rallied the pair.

Sellers tried to pushed the prices lower towards the 113.000 level during the Asian session giving mixed trend in the market yesterday as the price rebounded and stayed higher than the said level. Moreover, the market for the pair became attractive as it moved upwards during the North American session.

The Resistance level is seen at 115.00 level while the Support sited at 114.00 mark.The traders was not able to move the price above the 115.00 level but the price broke at 114.00. The market is focusing on 114.00 level but if there was a clean break, then the trend will shift towards the 115.00 level.

The 50-EMA showed a rebound in the price of the pair seen in the 4-hours chart maintaining its bullish slope. Its MACD histogram showed buyers leading the market supported by RSI as it moves upward.

 

[Luis ForexMart]

AUD/USD Technical Analysis: December 9, 2016

The pair AUD/USD is moving towards the support of the price trend in 4-hour chart. This current trend could persist if the support remains strong at 0.7369 level with the next target at 0.7600 level. Yet, if a clearcut is seen lower than the support level then this marks the final uptrend at 0.7508 level which would then be followed by a price drop to 0.7310 psychological level.

 

[Luis ForexMart]

EUR/USD Fundamental Analysis: December 9, 2016

The EUR experienced a sharp decline during yesterday’s trading session following the ECB conference, where Mario Draghi announced that the ECB will be extending its quantitative easing program for the whole of 2017. Draghi has also stated that the European Central Bank will be closely working with the financial market up until 2018. Prior to the ECB meeting, market players were instead expecting that the QE program will be tapering instead of having an extension, and this has caused a sharp drop in the value of the EUR since this particular move by the ECB is expected to further devalue the EUR.

This particular statement from the ECB has caused the EUR/USD pair to initially surge up to 1.0870 points but eventually dropped up to its support levels of 1.0600 points. The EUR/USD is expected to exhibit added bearishness for today’s trading session as the market is still in the process of reacting to this particular statement from the ECB. However, the currency pair is now within its strong support levels of 1.0500-1.0600 since the Federal Reserve is scheduled to have its meeting at the start of next week. If the currency pair manages to go beyond the 1.0500 trading range, then the EUR/USD is expected to finally exhibit its expected bearishness, but until then, market players will have to continuously monitor if ever the pair moves to the 1.0500-1.0550 trading region.

 

[Luis ForexMart]

GBP/USD Fundamental Analysis: December 9, 2016

The GBP/USD pair consolidated poorly during yesterday’s trading session after the sterling pound was adversely affected by the recent sharp drop in the value of the euro. The previous trading session initially started on a positive note for the GBP after it managed to regain some of its previous losses, causing the currency pair to hit 1.2700 points during the Tokyo and European trading session. However, the release of the ECB announcement caused the euro to incur massive losses, with the EUR/GBP pair experiencing devaluation. This then triggered the GBP/USD to retreat from 1.2700 and is currently hovering at the 1.2600 region.

The GBP/USD is expected to consolidate further with a somewhat bearish note as the euro tries to recover from this very significant loss of value. The Federal Reserve will be meeting at the start of next week, and the market currently has rate hike expectations of up to 0.25%. The dollar is then expected to exhibit weakness once the announcement from the Fed is released, and market liquidity is also expected to be relatively low during this particular period.

For today’s trading session, there are no major economic news releases from the UK, and the GBP/USD would most likely consolidate further along with a bearish stance and will be subject to added downward pressure due to the recent weakness in the value of the EUR.

 

[Luis ForexMart]

AUD/USD Technical Analysis: December 12, 2016

The Aussie traded mixed following the release of Australia and China’s economic data Home loans grew less as the Chinese and Australian manufacturing PMI presented greater than the anticipated results. Meanwhile, the AUDUSD is trading higher than the previous amid EU sessions on Friday. The rally faded within the 0.7500 region, which acts a strong support and further rejected the prices downwards. The Australian dollar rebounded the 0.7500 area and shifted towards the 0.7450. The price made a reversal in the 50-EMA and moved to the 200-EMA wherein the price is rejected downwards. Both 200 and 100 EMAs are trending lower and the 50-day moving average seems neutral. Resistance reached the 0.7500 level, support is seen at 0.7450. The MACD histogram traded downside. RSI remained neutral.

The bulls will decide to withdraw upon the failure of the pair to extend its gains. In case the price plunge to 0.7500, it would continue to weaken until it reaches the 0.7450 region. Moreover, the downtrend is expected to expand the seller’s position towards 0.7350.