Daily Market Analysis by ForexMart

[Luis ForexMart]

GBP/USD Technical Analysis: January 4, 2017

The manufacturing PMI of the United Kingdom had supported the sterling temporarily amid trades on Tuesday. While the strength of greenbacks had curbed the major gains.

Moreover, the GBP presented a neutral-to-bearish position yesterday. The cable pair reversed its early lows during the Asian session but the pound lose its legs to move ahead the 1.2300 level where major currencies work over new offers.

The pour lowered down in the 1.2245 region, although a renewed bout of buying interest stimulate the British currency to regain its previous losses hence it continued to bounced back towards the 1.23 barrier.

As presented in the 4-hour chart, the price pushed the 50-EMA upwards. Meanwhile, majors failed to escape around the area of 50-EMA thus, it hovered within the region all throughout the trading day. Moving averages (50, 100 and 200). The resistance highlighted the 1.2300, support jump in through 1.2200 mark.

The MACD histogram is set in the centerline. In case the indicator came back to the negative zone, seller’s strength will grow. If it entered the positive territory, buyers have the power to dominate the market. The RSI kept intact in the neutral stance.

According to forecasts, the bearish sentiment will prevail. Most likely, the scenario will exhibit a further downward movement around the 1.2200 region.

 

[Luis ForexMart]

EUR/USD Technical Analysis: January 4, 2017

The recent positive data from the European region released on Tuesday showed little-no significance against the euro. The unemployment report of Germany revealed positive result while the CPI in France also improved. Today, the Services PMI in Europe and the Composite PMI from Markit is expected to be release. The EUR/USD break on a stronger note yesterday.

During the early trades, buyers carried the currency pair from 1.0450 towards the 1.0500 region, however, the outset of the EU session was stalled by an upward impetus. The pair endured a notable demand from its US peer in the midst of the prevailing risk-on sentiment in the market.

The euro declined to the 1.0450 level and tested the 1.0400 area during the middle session of the EU trading.

As shown in the 4-hour chart, the price reversed the 100-EMA and take out 50-EMA towards a lower point. The 50-day moving averages established a neutral position while 100-EMA coupled with 200-EMA kept its bearish trend. Resistance approached the 1.0450 level, support lies in the 1.0400 region.

The MACD indicator advanced in the negative territory if it remained in its place the position of the sellers will increase. The RSI stayed around the oversold readings. Furthermore, technical indicators confirmed a bearish setup. The EURUSD is moving near the immediate level of support at 1.0350.

 

[Luis ForexMart]

NZD/USD Technical Analysis: January 4, 2017

The New Zealand currency had recovered compared to its American counterpart after the data release from China's manufacturing Purchasing Managers Index. Meanwhile, the pair established its recovery during the early trades yesterday in spite of the dollar’s strengthening across the board.

The NZD plunged through an upward trend and beat the 0.6950 level in the middle session of Asian trading. Nevertheless, the upswing that last overnight tried to hold back below the 0.6950 hurdle where the NZD/USD found a renewed selling interest. Moreover, the pair rebounded from the level amid the post-EU open and continued towards the 0.6900 support.

The 4-hour chart showed the price pushed the 50-EMA upwards in the morning trades. The pair was unable to expand its growth and further entered the 50-day moving averages before the outset of the North American session. The 200-EMA together with the 100-EMA sustained its bearish signal and the 50-EMA established a neutral stance. Resistance took the 0.6950 level, support approached the 0.6900 area. The MACD histogram traded on the downside. While the RSI oscillator lies in the neutral zone after it departed in the overvalued readings.

A bearish sentiment ruled on Tuesday. It is highly anticipated that the currency pair’s next target is 0.6900. In case the NZDUSD surpasses the initial target, the price is possible to move ahead to the 0.6850 region.

 

[Luis ForexMart]

USD/CAD Fundamental Analysis: January 4, 2017

The USD/CAD was one of the few currency pairs which benefited from the dollar index surge, as well as the recent drop in crude oil prices during yesterday’s trading session, which was the result of the carrying out of the recent agreements between oil production firms. The USD/CAD pair continued to exhibit a somewhat circumspect trading in spite of the dollar strength and has also limited itself to a tight trading range yesterday. The USD/CAD pair made a short-term drop at just below 1.3400 points but eventually reverted back to due an onslaught in demand and is now currently hovering at just below the 1.3450 trading range. The currency pair is expected to increase its strength as the day progresses, especially since majority of traders are now finishing off the holiday season and are now coming back to their trading desks. Even if the increase in the dollar index is not expected to drop anytime soon, its effect on the currency pair is expected to be somewhat subdued since the effect of the dollar surge could be offset by the recent increase in oil prices.

For today’s trading session, there are no major economic news releases from both Canada and US, and if the USD’s strength continues to go across the board, then the USD/CAD could possibly re-test the 1.3500 levels soon.

 

[Luis ForexMart]

GBP/USD Fundamental Analysis: January 4, 2017

In spite of the recent surge of the US dollar, the sterling pound was unaffected by the increase in the dollar index and was able to hold on its own. The GBP was able to manage the surge in the USD, thanks to the highly positive economic data from the UK which puts into view that the Brexit process might not be so bad after all and might even help with regards to the bolstering of the UK economy as long as it maintains its free access on the entirety of EU-based markets.

The Manufacturing PMI data from the UK was released yesterday and came in at an impressive reading of 56.1, going way beyond the initial market expectations of 53.3 and therefore helped in cementing the positive value of the sterling pound. One of the reasons why the GBP was able to withstand the increasing strength of the USD is that the market generally expects the worst economic readings from the UK as part of the repercussions of the Brexit process, but the economic data from the region comes out as increasingly positive. However, it still stands that the actual Brexit process has yet to begin, and the question still remains as to whether the UK will still be able to have continuously free market access to the EU markets after the said process.

For today’s trading session, the market is expecting the release of the construction PMI data from the UK, and since the dollar index is expected to retain its strength for today, it is important that this data comes out as positive since this will steer the general direction of the sterling pound. However, if the data comes out as negative, then the GBP/USD pair could possibly plummet to way below 1.2200 points.

 

[Luis ForexMart]

EUR/USD Fundamental Analysis: January 4, 2017

As the market’s overall volatility and liquidity returned yesterday following the holiday season, the USD once again exhibited its strength across the board. The strength of the currency was further augmented by the strong economic data which was released from the US. The US Manufacturing PMI data came in yesterday and showed a positive reading of 54.7, which just evident of the US economy’s recently positive economic data. If the nation continues to clock in positive economic sentiments, then this could further cement the chances of more frequent rate hikes from the Federal Reserve this year, and could also lead to faster hike pricing as well.

As a result, the EUR/USD pair plummeted through 1.0400 points and even surpassed its monthly lows last December for a short duration but eventually recovered during the opening of the European trading session and is currently hovering within the 1.0400 trading range. Market players are expecting the USD’s strength to be felt across the market for today, and if the EUR/USD could manage to break through 1.0400 points, then this could lead to the pair going lower further and possibly reaching 1.0300 points.

For today’s session, there are no major economic data coming from both the European Union and US and the market is most likely to be dominated by the onslaught of the returning of traders into the market, and any reversion in the EUR/USD should be seen by trades as a short-term opportunity.

 

[Luis ForexMart]

EUR/USD Technical Analysis: January 6, 2017

The single European currency shifted into a negative stance before the country’s Producer Price Index came in yesterday. The euro showed higher-than-expected results but failed to extend its value. Due to some inadequacy of solid data from the euro zone, traders draw their attention towards the American calendar. According to reports, the United States is anticipated to put out diverse reports about the labor market namely ADP Employment Change and US Initial Jobless Claims. On the other hand, the Markit Composite PMI is also included in the checklist.

The EUR/USD begin with a strong note on Thursday and rack up towards the 1.0574 where it found a hurdle and change into bearish.

The EUR rebounded the mark and pointed downwards. The sellers pushed the 1.0550 level in the European early trades, it further tested the 1.0500 in the middle session of Europe.

Before the outset of the NY session, the pair decline as the bears entered the area of 1.0450

As shown in the 4-hour chart, the price takes out the 100 and 50-EMAs upwards while the 200-day moving averages were tested amid the morning trading.

The euro was unable to regain the bearish 200-EMA and had a trend reversal in the post-EU opening. The 200 and 100-EMAs descended, the 50-EMA was neutral. Resistance took the 1.0500 handle, support is seen at 1.0450.

The MACD indicator jumps in the positive territory. In case the histogram hovered in that position, buyers will strengthen. The RSI readings interpreted an overvalued condition.

The bearish tone is kept intact. A downward movement towards the 1.0400 and 1.0450 marks is highly anticipated. But an uptrend at 1.0550 would cause the present selling pressure to neutralize. The pair may expand its recovery up to the region of 1.0650.

 

[Luis ForexMart]

GBP/USD Technical Analysis: January 6, 2017

Despite the “soft” remarks from the Fed, the USD seems weak versus the pound which continued to strengthen. Moreover, the British currency gained support from the favorable data of the PMI Services. The GBP established a bearish sentiment upon the interruption of its recovery within the 1.2361 level.

The cable pair use up the renewed offers changed its trend and declined in the 1.2269 as Asian session closes.

After posting its session lows, the buyers regained some of its losses and reclaim the predetermined level 1.2300.

According to the 4-hour chart, the price surpasses the 50-EMA upwards and test the 100-EMA as well. The GBPUSD is sandwiched between the 100 and 50-EMA. All moving averages moved lower as shown in the same trading chart. The resistance of the pair is seen at the 1.2300 region, support came in at 1.2200.

The MACD indicator lies in the centerline. If the histogram hovered in the negative zone, seller’s strength will improve, while an entry to the positive territory will allow for the buyer to take over the market. The RSI stayed in the neutral area.

Subsequent to the recovery of the pair, it preserved a bearish tone indicated in the 4-hour chart. Sellers aim to reach the 1.2200 and 1.2250 areas.

 

[Luis ForexMart]

AUD/USD Technical Analysis: January 6, 2017

The AUD/USD build a bearish pattern before the opening of European trading. While, a recovery rally within the 0.7150 lack few pips under the level 0.7350. Sellers were able to lead the price through the range of 0.7300 where they regained some steam to continue the interrupted movement.

The price upwardly pushed the 50 and 100-EMAs displayed in the 4-hour chart. The Aussie lose its value and turn back to the 100-EMA. The 100 and 200-EMAs maintained a lowering position and the 50-EMA is in a flat line. Resistance lies at 0.7300, support is at 0.7250.

MACD increase which confirmed strength for the buyers. RSI holds the oversold territory.

The mid-term view for the Australian dollar seems bearish. It is further expected that the pair is possible to move ahead the 0.7200 and 0.7250.

 

[Luis ForexMart]

EUR/USD Fundamental Analysis: January 6, 2017

The EUR/USD pair was subject to extremely high market volatility during yesterday’s trading session, which signals that the majority of market players have now returned to the market after the holiday season. The USD’s correction, which started after the FOMC released a less hawkish statement, continued all throughout yesterday’s Tokyo session. However, once the European session commenced, the USD was able to bounce back and regain its previous strength, causing the EUR/USD pair to plummet through 1.0500 points from its recent value of 1.0575. But once the New York session opened, the EUR/USD pair again bounced back from its loss as the USD again experienced a drop in its strength, thereby putting upward pressure on the currency pair and pushing it over 1.0500 and is now resting just below 1.0600 points.

As based on the minutes of the FOMC meeting, although the minutes lacked the hawkishness that the market initially expected, it has nevertheless shown that there could be at least 2-3 interest rate hikes expected from the central bank this year. Market analysts are speculating that this sudden volatility in the financial market is merely a foreshadowing of the large volume of economic data which is set to be released today.

For today’s trading session, there are no scheduled economic data release from the European Union. However, the US will be releasing its highly critical NFP report, as well as the average earnings report and unemployment rate data. If these data comes out as positive, then the market could possibly again see a hike in the value of the USD. The EUR/USD pair could possibly reach 1.0700 points since traders and investors are expecting a generally positive economic data from the US, which could then compel the Fed to increase the frequency of their future rate hikes.