Daily Market Analysis by ForexMart

[Luis ForexMart]

USD/JPY Technical Analysis: January 23, 2017

Subsequent to the speech made by Janet Yellen, the US dollar abated. But the greens reversed few of its losses on Friday on the back of the inauguration speech of Donald Trump.

The greenbacks attempted to reach 115.00 barrier amid Asian hours. The bulls pushed the level prior to the onset of the EU trading. The price was unable to maintain its upward impetus and turn back through 115.00 eventually.

The 4-hour chart indicates that the price rebounded to the 50-EMA during the Asian session and it further moved between the 50 and 100-EMAs in the Euro hours. The 100 and 50-EMAs employ a downward trend while 200-EMA was confined in the flat lining. Resistance touched the 116.00 level, support hit 115.00 area.

The MACD histogram arrived in the positive zone and if it hovered on its position, the buyers will strengthened. RSI stayed around the overvalued territory.

The general outlook for the pair remained to be bullish as it rack up through the resistance region 116.00.

The USD/JPY could fail and return to the downside in case the 115.00 handle were unable to support the bullish investors.

 

[Luis ForexMart]

USD/CAD Technical Analysis: January 24, 2017

The USD/CAD pair declined on Monday with minimal support. It seems that the pair will just sway over the uptrend line and the possibility for the market to reached 1.35 handle and higher. If the market was successful to break over the said said level and test the latest highs. Those who are interested in selling, it may not be advisable to do so because of the impulsive candle found since last week that plays strong. On the other hand, the oil market is not performing weak that makes it challenging for the Canadian dollar to surge.

 

[Luis ForexMart]

AUD/USD Fundamental Analysis: January 24, 2017

The Australian dollar was not that affected by the final decision of the new president, Donald Trump, to draw back from the Trans-Pacific-Partnership on Monday. This could be because the price set into the market soon after the results of the U.S. Presidential election has been released months ago or simply because the investors are neutral and plays indifferent from the outcome.

Other than the TPP deal, Trump has also mentioned imposition of border tax for corporate businesses that becomes a threat to those who moved out of U.S. for production.

Another concern is the remarks of Steven Mnuchin to retaliate the currency manipulation and the strengthening of greenback that may affect the economy negatively. Most especially the short-term trading may be heavily influenced since the value of U.S. dollar is relative to the condition of U.S. economy and confidence of investors in America.

On the other hand, the Australian dollar appreciated in the midst of weaker U.S. dollar. The pair closed at .7583 with an increment of 0.0031 equivalent to 0.40%. This may persist for some to me and boosted for short-term with the current mindset of Trump. Trading activity on Monday demonstrates the goal of Trump to weaken the greenback which would in turn increase the competition in the U.S. market including both good and services. Hence, it can be postulated that a trade war may occur and the same time the traders already anticipate high volatility in the market for this year. This is highly possible for countries to want to go against the greenback.

As for major economic data, the latest quarterly Australian Consumer Inflation are soon to be released with Economists expecting figures of 0.7 percent headline inflation and 0.5 percent core inflation.

 

[Luis ForexMart]

GBP/USD Technical Analysis: January 24, 2017

The British currency was able to gain more strength on the back of the depreciation of dollar. The USD decreased subsequent to the inauguration speech of President Trump which presented unclear implications about his future arrangements.

Meanwhile, the sterling extended its gains on Friday and continued to trade in the green zone yesterday. The GBP/USD escaped from the 7-week descending channel on Friday. The price pushed the 1.2400 level during the Asian session and moved northbound amid the EU trades.

The upward momentum slowed down below the 1.2500 region and a renewed bout of selling interest brought an impact to the spot.

According to the 4-hour chart, the price leads the moving averages (50, 100 and 200 EMAs) upwards and hovered on top of it. The 100 and 50-EMAs resumed its ascending trend while the 200-EMA trail behind. Resistance touched 1.2500 level, the support entered 1.2400 area.

The MACD indicator signalled strength for the buyers as it continually grew. RSI stayed in the overvalued zone and pointed higher.

The Cable appears to be bullish at present. If the pair surpasses 1.2500, the next target will be the mark 1.2550.

 

[Luis ForexMart]

AUD/USD Technical Analysis: January 24, 2017

Donald Trump’s program for the economic stimulus lacks clarity which considered to be the reason for the softening of the US dollar. Moreover, the positive sentiment prevailed on the commodities, particularly on Copper by which demand had surged for the Australian dollar on Monday.

The AUDUSD is confined in the short-term ascending channel trading within its recent highs yesterday. The price was able to expand its buying momentum during the morning trades. The AUD pushed the 0.7550 level amid Asian hours and posted its daily high at the mark 0.7575.

The spot decreased eventually and turn back to 0.7500 handle.

As shown in the 1-hour chart, the price lead the 50-EMA downwards and test the 100-EMA, the entire moving averages headed higher. Resistance lies at 0.7600, support sits in the 0.7550 region.

The MACD histogram showed some weakness against the position of the buyers after it decreased. The RSI hovered around the overvalued territory near the neutral zone.

According to the 4-hour chart, technicals signaled an upward expansion. The first bullish target is probably the 0.7600 barrier. If this point were reached, there would be another extension through the 0.7650 mark.

 

[Luis ForexMart]

EUR/USD Technical Analysis: January 24, 2017

The dollar softened on the back of D.Trump’s inaugural speech coupled with the Bundesbank’s report about high inflation. The Deutsche Bundesbank forecasted a 2% inflation for this month, this warning is mentioned on their recent monthly report. Moreover, the outlook is said to develop more than 2% or may even exceed the price stability of the ECB.

As the session opened yesterday, the EURUSD rallied and arrived near the 1.0750 region where resistance is found. While the 100-EMA stayed above the aforesaid level. A break below the candle’s bottom would show a continuous long-term bearish pressure in the market amid Monday trading.

Conversely, a close on top of the 100-EMA would trigger the buyers to make several attempts in approaching through the 1.0850 handle.

The support entered the 1.0640 region close to 10-day MA. Relative Strength Index (RSI) employed an upward trajectory. Likewise, MACD suggests an upward momentum.

 

[Luis ForexMart]

EUR/USD Fundamental Analysis: January 24, 2017

The EUR/USD pair continues to exhibit a strong trading streak as the USD continues to lose its value. The USD has recently been showing weakness and has been consistently dropping in value in spite of initial expectations that the USD will be increasing in value. The market is still unsure on how to approach this recent activity from the USD, although the Fed has already announced that it will be hiking its interest rates at least 2-3 times for the rest of 2017. This particular bit of news should have created an upward support for the US dollar and should be good news for the US economy as well, but then again the Trump administration has just come in, and in terms of fiscal, trade, economic, and particularly foreign policies, the international market is still uncertain on Trump’s stance, and this is why a lot of investors are still somewhat hesitant to invest in the reserve currency.

As a result, the EUR/USD pair is now about to enter a very critical region of 1.0800-1.0840 points and the market will be monitoring the currency pair’s movement within this range, especially if the currency pair will be undergoing a major correction or otherwise.

For today’s trading session, Germany and France will be releasing their respective PMI data, while the UK will be releasing today the SC ruling with regards to the country’s EU membership. This particular bit of news is expected to affect the UK economy as a whole, and will ultimately have an indirect impact on the direction of the euro. As the market is expected to be subject to heightened volatility in the coming days, traders are advised to ensure tight stop losses for their trades.

 

[Luis ForexMart]

GBP/USD Fundamental Analysis: January 24, 2017

Today’s trading session is expected to be very critical for the GBP/USD pair since UK is now awaiting for the release of the country’s SC ruling with regards to its eurozone membership, as well as the Brexit process, which is set to be released during today’s session. The GBP/USD pair has increased in value over the past 24 hours as part of market anticipation, with the currency pair closing yesterday’s session at over 1.2500 points after months of being unable to go over 1.2500 due to repeated pummeling from bears of the said currency. However, since yesterday was a generally good day for the sterling pound, the market is expecting that this currency pair would be able to reach 1.2700 or even 1.2800 in the short-term outlook for the GBP/USD pair.

The UK Supreme Court will be releasing its decision on whether the Article 50 will have to undergo scrutiny from the Parliament or otherwise, since the Article 50 is an essential factor on the carrying out of the Brexit process. The market is generally anticipating that the SC will be approving the Article 50 invocation, and if this does happen, then this will ensure that the whole of the Brexit process will be well-thought of, and this will ensure that equal distribution of ideas instead of the power becoming limited to select people in the government. This is expected to drive up the value of the GBP, but then there are also some risks that the Parliament approval might cause delays in the Brexit process since all views and ideas must be taken into consideration as part of the process.

There are no major news releases from the UK except for the SC ruling for the Brexit process, as well as from the US.

 

[Luis ForexMart]

NZD/USD Technical Analysis: January 27, 2017

The NZDUSD remained to be negative as it tested the level 0.7215 and bump into the 50-EMA which further supported the pair. The pair also got added strength from the stochastic which provided positive signals. Moreover, the bullish channel is expected to develop accompanied by bullish wave since the first week of January.

The aforesaid factors stimulate the maintenance of the bullish outlook during the intraday with a short-term basis. The major targets are the marks 0.7329 extended up to 0.7483.

The suggested trend can be maintained upon the key condition of holding the 0.7215 level. The anticipated trading range for this day intervenes the support region 0.7180 and 0.7400.

Moreover, the commodity markets are considered to weigh on the kiwi.

 

[Luis ForexMart]

GBP/USD Technical Analysis: January 27, 2017

The GDP result of UK for the fourth quarter exhibited a positive outcome which supported the British currency. Moreover, the sterling gained added support from the ruling of Supreme Court.

The data of Durable Goods Orders and US Gross Domestic Product Price will be released for today. The market also awaits the meeting of President Trump with Theresa May. The American leader will meet a foreign leader for the first time of his presidency.

The markets were surprised on Wednesday as the GBP successfully surpassed the 1.26 barrier. However, the GBPUSD declined after it touched its multi-month highs. Buyers were able to carry out an upside momentum. On one side, bulls lost their legs and stalled at 1.2650 as the European trades took place.

Bears drove the price lower and continued to test 1.2600 prior to the outset of NY hours and throughout the US session, the spot resumed to gain losses. As shown in the 4-hour chart, the price is on the overhead of the moving averages, at the same time, 50-EMA crossed over the 200-EMA into a higher point.

The 50 and 100-EMAs keep its bullish stance while 200-EMA trended neutral. Resistance is at 1.2600, support touched 1.2500 handle. The MACD increased indicating buy signal. RSI consolidated within the overvalued zone.

The Cable pair seems overbought. A correction move under the 1.2600 range is expected. In case that the spot focused on the lower area of the range, the pair may resumed its downswing towards 1.2500.