Daily Market Analysis by ForexMart

[Luis ForexMart]

GBP/USD Fundamental Analysis: February 15, 2017

The GBP/USD continued its weak trading streak and is expected to continue this particular activity until the week comes to a close since the dollar’s value will most likely to increase as this week progresses. The dollar’s recent increase in value can be mostly attributed to the market shifting its focus to the Federal Reserve from Trump’s policies, especially now that the market is beginning to realize the importance of the Federal Reserve’s interest rate hikes.

In spite of the recent surge in the dollar’s value, the sterling pound has managed to do relatively well as the guidelines of the Brexit process becomes clearer by the minute, and the GBP/USD pair has somewhat managed to keep itself above water during these past weeks. However, the CPI data from the UK released yesterday came in at a disappointing rate, and Yellen’s speech hinted at the central bank possibly implementing a number of rate hikes this year. This has caused the currency pair to plummet all the way down to 1.2500 and 1.2440 before finally settling at just above 1.2450 points. The currency pair’s stance looks dismal as of the moment and will continue being so for as long as the Brexit process further clarifies its guidelines.

Both the UK and the US will be releasing quite a number of economic data today, such as the claimant count change data and average earnings data from the UK and the retail sales data and the CPI data from the US. Yellen will also be making another testimony for today, and this is expected to increase market volatility.

 

[Luis ForexMart]

EUR/USD Fundamental Analysis: February 15, 2017

The EUR/USD pair continues to be subject to immense downward pressure as the dollar’s value increased across the board. In addition, the market has also finally shifted its focus on the Fed’s activity rather than the Trump administration’s movements, which is basically good news for the dollar and might continue to do so for the rest of the week.

The testimony of Yellen yesterday was the main focus of the market as she gave out pointers regarding the monetary policies of the central bank and hints on the incoming interest rate hikes this year. Yellen gave hints of a possibly interest rate hike this coming March. This was a cause for celebration to the dollar bulls,and the EUR/USD pair dropped to 1.0600 and managed to surpass the critical support barrier of 1.0580 points before settling just below this particular barrier. The EUR/USD pair is expected to maintain its weakness and any reversions should be viewed as a selloff for traders in the short term.

The US will be releasing its CPI and retail sales data today and this is expected to maintain the currency pair’s downward pressure together with Yellen’s testimony today. The pair could possibly move towards 1.0400 points.

 

[Luis ForexMart]

USD/JPY Technical Analysis: February 16, 2017

The British pound against the Japanese yen declined slightly on Wednesday session although it seems that the support level below is strong enough to keep the uptrend. If the market breaks higher than the peak of the range, this gives a buying opportunity to being the market towards the 145 handle. The 140 level and below looks like a significant support that could become a floor in the market. Traders should expect high volatility and it would not be long for buyers to be active again.

 

[Luis ForexMart]

NZD/USD Technical Analysis: February 16, 2017

The New Zealand dollar against U.S. dollar declined on Wednesday trading session. It reversed with hints of bullish tone as it breaks higher than the 0.72 handle. If the price breaks highers than the current range, it is possible to reach the 0.7250 level which could further go to the 0.7350 level. It has been a while for the pair to be in uptrend and the reversal with 38.2% Fibonacci retracement is indifferent in trading. It may not be favorable to position for a short-term since the price keeps on climbing higher.

 

[Luis ForexMart]

EUR/GBP Technical Analysis: February 16, 2017

The Euro against the British pounds surged on Wednesday’s trading session but failed to break higher than the 0.85 mark which is quite a strong Resistance level. Hence, it may not be advisable to trade this market giving quite a negative outlook in trading compared to other currencies. It might be wise to stay on the sidelines this time. On a brighter note, a resistive candle formed could halt the selling opportunity in the market which chances to go down towards the 0.83 handle.

 

[Luis ForexMart]

AUD/USD Technical Analysis: February 16, 2017

The Australian dollar against the U.S. dollar declined on Wednesday's trading session but was able to recover after a break out reaching a new high. It broke higher than the 0.7695 Resistance level and proceed with the upward momentum after lows at 0.7159 level. It is expected for the price to go higher in the next trading sessions towards the next target at 0.7800 zone. The key support is found at 0.7605 level and a break lower than the said level would complete the uptrend of the pair.

The market could try to move towards the 0.7750 level that is found to be a resistance level for the long-term charts. Short term reversals are eminent to be become buying opportunities to be forward implying a purchase after decline may not be favorable for short-term charts. Most likely, the 0.76 level will continue to be a strong psychological level in the market.

 

[Luis ForexMart]

USD/CAD Technical Analysis: February 16, 2017

The USDCAD is in the red in spite of the renewed buying interest in the US dollar following the statements made by Janet Yellen. The predictions about the rate hike in March stimulated the market sentiment. According to the Fed Chair, the hike will implement sooner in order to tighten monetary policy. Jeffrey Lacker, President of Fed Reserve Bank, suggested that the Chairwoman have the power to carry out 3 rate increases in 2017.

The price preserved a bearish sentiment on Wednesday. The bullishness of the greenbacks was short-lived making the pair to loosened their grip into their recent gains. The USDCAD trade in a narrow range amid European hours and hovered on top of range-bound.

According to the 4-hour chart, the price tested the 50 and 100-EMAs. Moreover, the 50-EMA exhibited an upward crossover to the 100-EMA. The 100 and 200-EMAs moved southwards while 50-EMA headed upwards. Resistance is found at 1.3120, support is seen at 1.3050

The MACD is bearish sitting in the negative zone. The RSI settled around the neutral territory.

Furthermore, the bullish pressure is expected to revive. As the commodity-linked pair reaches the top of 1.3120 resistance region, we expect to see an uptrend. The next target is 1.3190 mark.

 

[Luis ForexMart]

GBP/USD Technical Analysis: February 16, 2017

The British currency had refreshed its lows following the mixed data of employment. The jobless rate in the UK remained steady for the month of December while the measure for Claimant Count Change is lower than the said forecast. The GBPUSD further hovered in the selling pressure on the back of Yellen’s comments on Tuesday.

A short period of consolidation concluded in the early trade of EU. The sterling met a downside pressure stimulating its declivity. The price reached 1.2400 level on the back of the London session. The cable is confined under the 100 and 50-EMAs indicated in the 4-hour chart, the two further moved southbound while the 200-EMAs directed up. Resistance is seen at 1.2500, support stayed at 1.2400.

MACD indicator grew less which confirmed a sell signal. The RSI hovered in the oversold area after leaving the neutral zone. The bearish sentiment dominated the market on Wednesday. A close below the support region 1.2400 would cause the major to resume its decline towards 1.2300.

 

[Luis ForexMart]

EUR/USD Technical Analysis: February 16, 2017

The US dollar stays close on its renewed highs versus other major pairs. The hawkish remarks made by J. Yellen provided support for the greens regarding the possible rate increase in March. The consumer price index in Spain came in lower than expected and weighed against the euro.

Having touched the 1.0550 level, the EUR rebounded and reversed few of its losses. The recovery took overnight tried to slowed down below 1.0600 hurdle. The EURUSD were kept in the pressured area, en route negative zone during the post-Asian hours. Sellers moved the price downwards and tested the 1.0550 region amid EU session. The pair resumed its development under the moving averages as shown in the 4-hour chart.

The 100 and 50-EMAs preserved its bearish sentiment while the 200-EMA headed upwards as indicated in the same timeframe. Resistance touched 1.0600, support hit 1.0550.

MACD histogram appeared to be bearish and settled in the negative zone. RSI favored another downtrend staying in the oversold territory.

The price continued to remain bearish according to the 4-hour chart. A clear break below the range of 1.0550 will further decline to 1.0500 mark.

 

[Luis ForexMart]

USD/CAD Fundamental Analysis: February 16, 2017

The USD/CAD pair continues to be subject to tremendous pressure, with the currency bulls doing their best to maintain their hold on the USD/CAD pair. The currency pair has been consistently on the brink of breaking through its critical support barrier for over weeks now, and forecasts have been saying that any breakthrough in this region would result to a major trend change for the currency pair.

The US released a string of important economic data yesterday which has significantly affected the value of the USD and injected volatility into the market. Both the CPI data and the retail sales data from the country were able to exceed market expectations, but then these positive data were overshadowed by a dismal wage data, and this caused the USD/CAD pair to temporarily break through 1.3100 points. However, as the market began to feel the effects of a weak wages data, a massive selloff in the USD started to occur and this put downward pressure on the USD/CAD, pushing it way below 1.3100. The currency pair is now trading just over its critical support barrier of 1.3060 points.

There are no major economic data scheduled to come out from both the US and Canada except for the unemployment claims data from the US. The USD/CAD pair is expected to remain within a limited range of 1.3000-1.3100 points.