Daily Market Analysis by ForexMart

[Luis ForexMart]

GBP/USD Technical Analysis: December 12, 2016

The Goods Trade Balance and Total Trade Balance established an optimistic data on Friday along with the strengthening of the sterling pound. The British currency procured some ground during the earlier trading session on Friday. Buyers drove the prices towards a higher position and tested the 1.2600 level amid the European session. The upward impetus short-lived consequent to the test, following the GBP’s rollback below the level. As indicated in the 4-hour chart, the cable pair rebounded through the 50-EMA. Moving averages uphold its bullish bias.

Resistance lies in the 1.2600 are, the support sits at the 1.2500 region. The MACD histogram pierced through the negative range. When the MACD stayed in the negative zone, sellers will obtain more strength. The RSI is within the neutral territory.

The GBPUSD is expected to weaken upon the break below the 1.2600 level. Likewise, this could lead the prices towards 1.2500.

 

[Luis ForexMart]

EUR/USD Technical Analysis: December 12, 2016

The decision of the ECB to maintain its monetary policy had strengthened the dollar. However, the euro is weakening once again after it made a dipped on its fresh monthly highs and failed to hold its gains. Meanwhile, the EURUSD headed southwards on Friday. During the EU hours, the sellers successfully broke the 1.0600 region then continued to lead the prices through the 1.0550 lower, the pair surpass this level amid the NY session. The price rebounded in the 200-EMA downwards as shown in the 4-hour chart. After the euro and greens had broke both 50 and 100-EMAs, it continued to progress down in the moving averages. While the 100 and 200 EMAs preserved its bearish bias, 50 EMA rendered a neutral stance. Resistance touched the area of 1.0600, support is seen at 1.0550.

The MACD histogram makes its entry point within the negative zone. Should the indicator kept unmoved in the negative area, the sellers are able to gain further strength. The RSI remains oversold.

In case the prices settled below the 1.0600 support level, this will cause for a short-term downtrend. The next target of the sellers is 1.0500 and 1.0550.

 

[Luis ForexMart]

USD/CAD Technical Analysis: December 12, 2016

The pair USD/CAD is moving in a downward direction from the 1.3536 mark. This is anticipated to continue for the day with the next target towards the 1.3000 level. Resistance is positioned at the higher price channel and if a clear break is seen above the psychological levels then this would signal the completion of the downtrend.

 

[Luis ForexMart]

EUR/USD Fundamental Analysis: December 12, 2016

The pair EUR/USD has been trading on a weak side considering this is the first day of the week with Fed meeting scheduled soon and the expected first rate hike of the year is most likely to be announced. This will be a significant event for the financial market where everyone is waiting for this hike which will bring volatility for the week. It remains questionable whether the current support region will stay resilient at 1.05 level. This will open the way for reduction of this pair.

Events in Italy also influenced the pair most especially Euro which seems to persist throughout the day. The third largest economy brings crisis and the Italian banks seem to need an aid worsen by the political uncertainty. This will be discussed once the change in government commence its office and a bailout would just mean more spending. Hence, the trading session started low at 1.0520 level. It recovered and was able to position above the 1.0550 mark.

There is no major news to be publicized today. Hence, the pair is anticipated to remain in a consolidation state and barish tone. The pivotal point of the pair is the price at 1.0500 level which would determine the direction of the trend and who will be the predominant market participants either the sellers or buyers. However, traders have to be cautious with making long positions which is much safer to have a stop loss marked lower than the 1.0460 level.

 

[Luis ForexMart]

GBP/USD Fundamental Analysis: December 14, 2016

The GBP/USD is still one of the most stable currency pairs as of the moment, with the GBP/USD pair trading way above 1.2700 points. The market is currently waiting for the results of the FOMC meeting, and it is anticipated that the market will be mainly focusing on the Federal Reserve’s activities in the coming weeks after the statement release from the central bank.

There has been no major economic releases from the UK, but the region is expected to enter a period of marked volatility due to the commencement of the actual Brexit process this coming 2017. For the European session, the claimant count change data is expected to be released into the market, and the Bank of England is also expected to make a statement, and these are expected to increase the GBP/USD pair’s volatility levels.

The market is also expecting the release of the FOMC minutes, as well as the details of the press conference which is scheduled immediately after the Fed meeting. However, the central bank’s expected decision to implement a rate hike might not cause much volatility since the majority of traders are now shifting their focus to the details of the subsequent conference, since this could give hints on the future course of the central bank this 2017. The GBP/USD is speculated to become more volatile as compared with other currency pairs, and low volume is expected before the year ends, with prices becoming highly moveable as the end of the year approaches.

 

[Luis ForexMart]

USD/CAD Fundamental Analysis: December 14, 2016

The USD/CAD pair is still trading within the lower regions of the chart, with the 1.3000 trading range seen as a key range for the currency pair. Once the pair goes below 1.3000 points, then this could offset the previous uptick in the movement of the pair and could be very beneficial for the bearish market players. The pair was able to remain within the tight-range territory due to lack of activity from the Canadian economy as well as from the crude oil market.

In spite of the fact that the Canadian economy is largely dependent on the activity of oil prices, the USD/CAD was able to sustain its value even when faced with fluctuations in crude oil prices paired with a steadily positive economic data from the country. However, the currency pair is expected to remain under pressure for as long as oil prices are able to sustain its recently high value. The Bank of Canada is also expected to cut back on its interest rates this coming 2017, and this could have an effect on the Canadian currency. This also partly explains why the USD/CAD pair is mostly bullish for this term.

For today’s trading session, there are no major news releases expected from Canada. However, the US is set to release its retail sales data, as well as the minutes of the first part of the FOMC meeting, which could induce volatility in the movement of the USD/CAD pair. If the pair reaches 1.3000 points, then a stop loss is advised just below 1.2980 points.

 

[Luis ForexMart]

USD/JPY Technical Analysis: December 14, 2016

The US and Japanese economy had an empty market calendar due to lack of economic releases during the previous trading session. However, the market is now anticipating the minutes of the Federal Reserve’s meeting this week, which is expected to contain affirmation of the much-awaited Fed interest rate hike. The four-week uptrend of the USD/JPY pair was sustained during Tuesday’s trading session, and the positive bearish sentiment was able to induce the pair to decrease in value The USD’s recent uptick was stopped by resistance which was found at the 116.00 region, and the USD/JPY p air reverted back to its original support levels of 115.00 where it remained for the rest of the trading session last Tuesday. The 50, 100, and 200 EMAs sustained their bullish stance, and resistance levels for the currency pair continue to be expected at 116.00 points. Meanwhile, support levels for the currency pair are expected to be at 115.00 points.

The MACD indicators for the currency pair remained at its previous range, which is indicative of increasing buyer strength. The RSI indicators for the USD/JPY pair were able to leave overvalued readings. The bullishness of the market is expected to remain, however a consolidation is expected to occur in the near future. The market is now monitoring the resistance levels of 116.00, and if the pair manages to go beyond this particular region, then the pair could possibly reach the 117.00 trading region.

 

[Luis ForexMart]

EUR/JPY Technical Analysis: January 4, 2017

The pair EUR/JPY surged yesterday but was able to rebound to form somewhat a negative candle. As of now, the pair is being tested for consolidation and this may be supported in the lower area to maintain this trend while there is no support for a candle pattern yet.

The trend is being tested at 125 handle although the market is not that active to push it in a certain direction with enough momentum. However, a strong support is seen lower than the 120 handle.

 

[Luis ForexMart]

USD/JPY Technical Analysis: January 4, 2017

The USD/JPY pair broke its psychological level yesterday but rebounded higher than the turnaround level. A semi exhaustive candle was seen to form that could further push upwards the long-term levels with chances for pullback. The Support level was posited at 115 area with the next target at 120 level. It seems the market could reach this mark anytime soon.

The non-farm payroll data is anticipated to come out which will have a big impact to the pair that could subdue the market.

 

[Luis ForexMart]

USD/CAD Technical Analysis: January 4, 2017

The trading session for the pair USD/CAD was not smooth on Tuesday with traders returning from Holiday. Currently the pair is being tested on 1.34 support level while the resistance level is found higher than the 1.35 level. The long-term uptrend may persist if the trend yesterday keeps up but this is not favorable for the Canadian dollar. The psychological levels could continue towards the 1.36 level.