Daily Market Analysis by ForexMart

[Luis ForexMart]

GBP/USD Technical Analysis: January 12, 2017

The pound failed to hold its momentum on Wednesday because hard-brexit concerns weigh over the GBP/USD as it continues to allure renewed selling pressure. The Industrial and Manufacturing Production presented optimistic data while results for Trade Surplus and Balance of Trade came in negative, this mixed data in UK did not provide enough support for the Great Britain pound. Furthermore, investors were focused on the testimony of BOE Governor Mark Carney in the US session.

The cable pair slowed down in the 1.2200 region since it lost its ground during the Asian recovery. Having touched the level, the price made a reversal and softened around 1.2100 subsequent to the onset of London trading. The pair reversed few of its losses as it reached the aforesaid region.

According to 1-hour chart, the price descended in the 50-EMA and resumed to develop down from the moving averages. The 200-EMA showed a neutral stance while 50 and 100-EMAs headed downwards. Resistance highlighted the 1.2200 level, support entered the 1.2100 area.

MACD bounced back in the negative territory which indicate increasing strength for the sellers. RSI lies around the oversold readings.

The price sustained a bearish sentiment showed on the 4-hour chart. There is a need for the cable to sell steadily if the price moved below 1.2100 and headed to 1.2000.

 

[Luis ForexMart]

EUR/USD Fundamental Analysis: January 12, 2017

Yesterday’s trading session proved to be very stressful for both investors and traders alike. However, during the Tokyo and European trading sessions, the EUR/USD pair still underwent ranging and consolidation without any definite direction as the market generally waited for Trump’s press conference statement during the New York trading session. But as the press conference began, chaos within the market ensued as the majority of currency prices exhibited extreme volatility, with both the shorts and longs being subject to extreme pressure.

One of the reasons why the market kept a close watch on this particular conference is in order to see whether Trump would become diplomatic with regards to his policy approaches or if he would still stick to his brash attitude. However, once the conference started, it became clear that Trump had not changed one bit after he merely talked about his personal interests and his opponents rather than actual policies which would be of use to US as a nation. The USD initially increased in value prior to the said press conference as the market anticipated Trump’s move, but as the president-elect’s stance became clear, the USD eventually plummeted, leaving room for the EUR/USD pair to recover some of its recent losses in value and was able to go to just above 1.0600 points. If the EUR/USD pair maintains its bullishness, then the currency pair could possibly break through 1.0600 points. Otherwise, the pair could be subject to more ranging and consolidation for today’s trading session.

The US is scheduled to release its unemployment claims data, but the USD will still be reeling from the negative effects of Trump’s conference and could possibly drop to 1.0700 points.

 

[Luis ForexMart]

GBP/USD Fundamental Analysis: January 12, 2017

The US dollar took the spotlight yesterday as the market reacted wildly to Donald Trump’s press conference during the latter part of the New York trading session. The market was initially subdued during the London and Tokyo trading sessions since the market was generally looking forward to gauge Trump’s demeanor, as well as to decipher his administration’s plans for the next 4 years and to see whether Trump will actually be pushing through with his proposed policies during his campaign.

However, Trump went in for a very disappointing run as he displayed his usual tactlessness and brashness and even highlighted his desire to build a Mexican border within two years. This move was wholly unexpected by the market, and this caused the USD to crash and plummet across the board. The GBP/USD pair, which has been languishing in the bottom rungs of the market for the past 2 months, was able to immediately recover its losses and was able to push through 1.2200 points and even reached 1.2250 before finally settling at just under 1.2200 points.

Since there are no major news releases expected from the UK for today, the previous market trend is expected to dominate today’s trading sessions. The bulls could possibly profit from a solid upward move from the GBP/USD pair if the pound would be able to break through 1.2300. Otherwise, the currency pair could be merely subject to short-term corrections.

 

[Luis ForexMart]

USD/CAD Fundamental Analysis: January 12, 2017

The USD/CAD pair exhibited additional corrections during yesterday’s trading sessions as the US dollar weakened significantly following the press conference of president-elect Donald Trump. The market initially expected Trump to give hints on his proposed economic, fiscal, and monetary policies but instead disappointed market players after he merely talked about his personal interests and his business enemies. This then caused the dismal drop in the value of the dollar. The stock market was able to recover slightly towards the end of the session, but the same could not be said for the US dollar.

As oil prices managed to regain its losses during yesterday’s session, this has proved to be good news for the Canadian dollar since this lended the CAD some much-needed support and has triggered the USD/CAD pair to reach just under 1.3200 before settling to 1.3150 points. The economic news release from Canada came out better than what the market expected, and since oil prices are now looking good, these are expected to provide susbstantial support for the CAD in the long run. The USD/CAD pair could possibly test the 1.3000 level due to the recent weakness in the USD

For today’s session, there are no major releases from the Canadian economy but we have the unemployment claims data from the US which will be released during the North American trading session. However, the most dominant market trend today would most likely still be the effects of the recently concluded press conference, and this is why the pair is possibly up for more weakness and volatility for today.

 

[Luis ForexMart]

USD/CAD Technical Analysis: January 17, 2017

The USD/CAD pair surged for sometime on Monday’s session although it still swayed lower than the current line moving upwards. It is a good opportunity to long position after a break beyond the top of the hammer pattern on Friday. This would indicate the price to go even higher. On the other hand, a break lower than the hammer pattern implying a negative outlook for the market which could bring the price lower.

 

[Luis ForexMart]

AUD/USD Technical Analysis: January 18, 2017

The AUD/USD pair broke higher than the 0.75 handle on Tuesday’s trading session. This clear break shows a good sign that the price would further go up which is influenced by the gold market. Hence, the surge will most likely continue towards the 0.7650 handle. However, if the price reversed and turn around towards the 0.75 decline giving a negative outlook. The current price trend is in an overbought condition giving an apprehensive stance to the traders with high elevated levels. Nevertheless, the pair is gaining strength.

 

[Luis ForexMart]

NZD/USD Technical Analysis: January 18, 2017

The NZD/USD pair surged on Tuesday. It broke over the shooting star pattern formed on Monday’s Trading session as it reached towards the 0.72 handle. This indicates a bullish tone with a strong resistance lingers up above the trading channel. The levels are elevated that traders should be careful in placing their trades unless there is a prior long position already. Traders who opt to wait in the sideline could wait for the prices to change in the future sessions for new highs.

 

[Luis ForexMart]

USD/CAD Technical Analysis: January 18, 2017

The greenback slumped on Tuesday’s trading session testing at 1.30 level. The trend moves downward from 1.3598 level. If the downtrend holds the current resistance, then the downtrend could persist towards the next target at 1.2900 level. The strong resistance stands at 1.3189 level and and a break higher than this level completes the downtrend.

If the market could break lower, it is possible for the price to trade below the 1.30 handle. Oppositely, if the price breaks above the candle formed on Tuesday trading session, this could be a buying opportunity while hoping for the oil prices to decline. Yet, it seems that the sellers will sustain the current trend.

 

[Luis ForexMart]

EUR/USD Technical Analysis: January 18, 2017

German economic sentiment did not meet investor’s outlook. Meanwhile, the market concentrates on the statistics of CPI from EU and Germany.

The pair resumed its short-term upward momentum yesterday. Bulls were able to dominate the market and drove the price higher amid the Asian session. The European currency rallied and take out 1.0650 in the middle Asian hours. The euro expanded its gains and touched 1.0700 level during the EU session.

The price rebounded in the 100-EMA and pass over the 50-EMA upwards, it further settled on top of the moving averages with a bullish slope as indicated in the 1-hour chart. Resistance is seen at 1.0700, support jump in the 1.0650 region.

The MACD increased which favored strength for the buyers. RSI oscillator escaped from the neutral territory and turn back to the positive area.

The technicals displayed a bullish pattern. The EURUSD headed near its immediate resistance at 1.0700. The barrier broke the next level and fixates on 1.0750. We do not rule out the possible decline in profit taking subsequent to the rally took place on Tuesday. Sellers are also able to remove few of its losses if it pushed the price below 1.0650 region and advanced towards 1.0600.

 

[Luis ForexMart]

GBP/USD Technical Analysis: January 18, 2017

There are high expectations that the Jobless Rate and Average Earnings will present green figures. Yesterday, bulls were able to take the driver’s seat in a moderate tone. The GBP/USD successfully fill the gap last Monday with the help of an extreme short-term rally.

The sterling pushed 1.2100 during the Asian hours and reached 1.2200 prior the opening session of Europe. The momentum of the pound became short-lived as the level were being tested. The price had tone down, however, continued to stick at the 1.2200 level. Meanwhile, the 4-hour chart presents the price escalated and test the 50-EMA. It continued to advance under the moving averages and resume to moved lower. The resistance hit the 1.2200 region, support is at 1.2100.

MACD strengthen which signaled weak position against the sellers. RSI stayed in a neutral stance.

Should the Cable close above 1.2200, a fresh bullish pressure is expected to see. While the daily close on top of 1.2200 bears further risk as the pair rise towards 1.2300. In case the barrier maintains the price, it has a tendency to be in the red again and renewed lows near 1.200.