Daily Market Analysis by ForexMart

[Luis ForexMart]

EUR/USD Technical Analysis: January 27, 2017

Investors pay no attention towards the upbeat data from the Euro region which presented stronger-than-expected results in German Consumer Climate while Unemployment Rate in Spain came in below forecast. The market fixates in the American GDP to be released today.

Meanwhile, the EURUSD were dominated by the bulls yesterday. The market was able to stabilize despite the absence of market drivers.

The single European currency is kept intact within tight range placed in the middle of 1.0720-1.0750 marks during Asian hours.

European tradesmen lead the price downwards as the EUR fell and tapped the 1.0700 level amidst EU session. The spot surpassed 50-EMA and 100-EMA were tested based on the 1-hour chart. The 100 and 200-EMAs drove upwards while the 50-day moving averages came in neutral. The resistance lies at 1.0700 region, support pierced the 1.0650 area.

MACD indicators dipped which confirmed a weak position of the buyers. RSI departed from the overvalued zone and moved southwards.

The bearish sentiment would likely to prevail. Seller’s presence will emerge upon a movement below 1.7000 handle. A break in the level would trigger a downtrend for the pair. In case the price close on top of 1.0750, it allows the market to move higher.

 

[Luis ForexMart]

USD/CAD Fundamental Analysis: January 27, 2017

The USD increased in value during the past 24 hours. However, it still proceeded to exhibit weakness against trading with the CAD, which then resulted into more ranging and consolidation for the USD/CAD pair. The USD/CAD is currently trading within the 1.3000-1.3100 region. The main reason for this is that the Trump administration is starting to act on many of its campaign proposals, with the NAFTA Agreement up next on its to-do-list.

President Trump is already starting to lay out his plans to build a Mexican border, one of the most controversial planned policies of the Trump administration, and it is only a matter of time before the US deals with the Canadian government with regards to its trade relationship with the said country. As a result, there have been rising concerns across the market that this might have a major effect on the overall status of the Canadian economy and this has put constant pressure on the USD/CAD pair. However, since the US dollar was able to regain its footing during the past 24 hours, the currency pair was able to remain afloat just above 1.3100 points.

There are no major news releases from the Canadian economy today but the US will be releasing its advanced GDP data, and if this bit of data comes out as positive, then this will further affirm the Fed’s rate hikes and help push the US dollar further upward.

 

[Luis ForexMart]

GBP/USD Fundamental Analysis: January 27, 2017

The sterling pound has been very resilient during the past few weeks ever since it exhibited corrections just under 1.2000 following concerns that May might just opt for a hard Brexit process. The currency pair has since then reverted from its trading lows and has accumulated a total of over 600 pips during the past two weeks. This was partly due to renewed clarifications on the Brexit process as well as on the invocation of Article 50, wherein the UK Supreme Court ruled that the Article 50 can only be carried out if it is subject to approval from the British Parliament.

One of the most remarkable occurrences yesterday was the reversion of the US dollar across the market after it finally gained strength following a market slump. The GBP/USD was however able to exhibit its resiliency after exhibiting only minor corrections as a reaction to the dollar strength, whereas the euro dropped drastically by up to 120 pips. The GBP/USD pair is currently situated just under 1.2600. In addition, the advanced GDP data from the UK also came out better than expected yesterday after it came in at a reading of 0.6%, going well beyond market expectations. This just shows how the UK economy still manages to hold its own in spite of Brexit-related matters.

There are no major news releases from the UK today, however the advanced GDP data from the US will be released today, and this will be the focus of the market as this will determine whether the Fed would soon increase its rates and if this data would help in supporting the upward movement of the dollar. The GBP/USD pair could dip towards 1.2500 if this data comes out as positive.

 

[Luis ForexMart]

EUR/USD Fundamental Analysis: January 27, 2017

The EUR/USD pair finally experienced some substantial correction after the USD was able to regain its strength during the previous session. The EUR/USD pair dropped by over 120 pips from its previous level of 1.0770 points and is currently trading at 1.0680 points. This move in the currency pair was mostly caused by heightened risk in the stance of the euro after a number of world leaders voiced out their concerns regarding the EUR’s strength, while other world leaders stated their confidence in the current situation of the euro currency. However, speeches like these from government leaders would usually cause general unrest in the market especially since these kinds of speeches are usually uncalled for.

The dollar also received support from the fact that the Trump administration seems to be working on most of its campaign platforms and are actually following realistic targets instead of going haywire, and since this is generally good news for the market, this has created an upward support for the US dollar. The dollar seems to have finally broken its wild careening movement and is expected to steadily increase in value over the next coming sessions.

US will be releasing its advanced GDP data as well as its Durable Goods data during today’s session, and these sets of data will be closely monitored by the market since these will either make or break the US economy’s current show of strength. If these data comes out as positive, then this could possibly lead to the USD increasing further in value up until the weekend, and the EUR/USD could correct up to its range lows of 1.0400 points.

 

[Luis ForexMart]

USD/JPY Technical Analysis: January 31, 2017

The USD/JPY pair surged for two days atop of 115.00 level. The difference between U.S. dollar and Japanese yen narrowed on the opening of Monday’s trading session. The greenback moved from 115.00 to 114.85 prolonging its losses soon after. A New bid is found around 114.23 level causing to climbed back to its opening price. In the morning, the price reached the 115.00 level in the early European trades but did not stay long back to the former price. It maintained at a low price prior to opening New York trades.

The price tested in 100-EMA chart maintained its spot after testing. Both the 100 and 200-EMA charts remained static while the 50-EMA moved upward in the chart. The Resistance level sits at 115.00 level while the Support level is found at 114.00 level. MACD remained in the upper channel. The RSI entered the overvalued area near the neutral zone.

The bullish tone supports the uptrend sentiment of the market. If the price breaks higher than the 115.00 handle, the price could further reach the 116.00 level. The rally of U.S. Treasury bonds boosted gains for the greenback after some losses. However, the currency weakened dragged down by the result of Retail trade in Japan.

 

[Luis ForexMart]

AUD/USD Technical Analysis: January 31, 2017

The AUD/USD pair moves in an upward direction from 0.7159 level. If the market is able to maintain a strong support at 0.7493 level, the decline towards the 0.7608 level means a consolidation of the priced upward. Following consolidation, the next target of the price would be at 0.7700 level. However, if the price breaks lower than the 0.7493 level, it implies that the uptrend has been finished at 0.7608 level. Oppositely, if the price moves downward, the price could reach the 0.7350 level.

 

[Luis ForexMart]

USD/CAD Fundamental Analysis: January 31, 2017

USD/CAD pair remained in a consolidation state balancing off weakness from both currencies. U.S. dollar has weakened because of changes in immigration rules and trade agreements from other countries. immigration rules restricting seven Muslim countries from entering U.S. territory added by not participating in TPP agreements. This change in policies is pursuance one of Trump’s campaign promises despite many Americans and non-Americans against this principle.

Changes in immigration rules are foreseen to affect U.S. economy as well as other countries considering fact that these countries could follow suit against the United States. Most likely, Canada will be strongly affected by these changes demonstrated in currency’s performance for past two days. The market is able to maintain a strong support at 1.3100 level. The current weak condition of the pair is anticipated to persist for this day.

Canadian GDP will be released today prior to NY trading session. results will give hints and signs of weakening of the economy. Hence, this may induce Bank of Canada to cut its rates in next months to come. Traders have to be cautious of fluctuation in volatility of the market and should restrict their trades with stop losses as much as possible.

 

[Luis ForexMart]

USD/CAD Technical Analysis: January 31, 2017

Many investors await for the release of GDP scheduled tomorrow. Meanwhile, the decline in oil prices shocked the commodity currencies including the Canadian dollar. Moreover, the terrorist attack on the Quebec mosque last Sunday further made a slight impact against the Loonie.

Meanwhile, the greens resumed its short-term bullish signal on Monday and it resumed to climb higher subsequent to a short period of consolidation amid Asian hours. The USDCAD strengthen during the earlier trades in Europe and advance to 1.3190. But the upside impetus stalled at 1.3158 level where the major stayed prior to the opening of NA session.

The spot is confined under the moving averages as indicated in the 4-hour chart. The 50-EMA made an upward crossover to the 100-EMA. The 50 and 200 EMA are neutral while 100-EMA en route lower. Resistance entered 1.3190 level, support plunge in at 1.3120.

The MACD increased which signaled sluggish stance for sellers. RSI lies around the neutral territory.

The 1.3120 support region paid attention by the market. A gap within this region would open an opportunity for the 1.3090 range, lowering to 1.3050.

 

[Luis ForexMart]

GBP/USD Technical Analysis: January 31, 2017

The UK calendar seems empty on Monday as the markets fixate on the Bank of England on Wednesday.

The GBPUSD break higher as the new week starts. The spot plunge towards 1.2600 as the price found a decent hurdle. The Cable rebounded through the barrier and turned lower in the opening which closed the bullish gap. The spot kept pressured around 1.2500 amid EU hours, however, did not make it regain the level. The sterling pound stayed overhead of the moving averages as shown in the 4-hour chart. Moreover, the 100-EMA crossed above the 200-EMA. The 100 and 50-EMAs ployed northbound while the 200-EMA appeared to be neutral-bearish. Resistance touched 1.2600 level, support sits in 1.2500 handle.

The MACD histogram fell off which signaled weak position against the buyers. The RSI indicator departed from the overvalued area and pointed southbound.

The technicals prefer a downside movement. If the 1.2500 level gapped lower it will direct the cable pair to 1.2400.

 

[Luis ForexMart]

EUR/USD Technical Analysis: January 31, 2017

The single European currency takes no attention to the upbeat of Spain’s GDP and it continued to weaken on Monday. The markets await for the impending meeting of the ECB while there are speculations the Consumer Price Index would be in the green.

The EURUSD break upwards in the daily open yesterday. The price reaches the region 1.0700 up to 1.0740 amid Asian hours.

The negative stance of the dollar was reversed as the Asian session took place. Bullish investors were unable to resume their gains as they decided to give way to the sellers. While the bears managed to lead the spot towards 1.0700. Before the opening of the New York trades, a renewed selling interest developed.

The pair made an even break downwards and touched 1.0650 level. The price pushed the 50-EMA lower while the 100-EMA was tested as indicated in the 4-hour chart during the middle session of Europe. The 100 and 50-EMA directed upwards, 200-EMA is flat. Resistance is mentioned at 1.0700 region, support is shown at 1.0650 handle.

The MACD lies at the middle point. Should the indicator arrive in the positive zone will indicate added strength for the buyers, however, an entry through the negative territory will signal seller’s ability to dominate the market. RSI comes in the neutral zone, en route southwards.

It is recommended for the 1.0750 resistance to test again prior to the pair’s rally as it approaches 1.8000 range. But the spot might change and it becomes bearish for this moment. If the price focuses on the mark below 1.0650, the 1.0550 level is possible to open.