Daily Market Analysis by ForexMart

[Luis ForexMart]

EUR/GBP Technical Analysis: September 29 2016

Today, Euro were able to gain a higher position compared with the sterling pound. This movement passed through the swing high in the month of July. Prices are still way up higher for the seventh time consecutively since 2013.


The closing price over the 50% of the Fibonacci retracement is beyond the 0.8762 region and reached a 61.8% level in the point of 0.8884. A reversal in the price actions settled down in the 0.8627-41 area or 38.2% of the Fib created a way in retesting an expansion of 23.6% or 0.8491. The unavailability of bearish signal pattern indicated a perilous direction.

 

[Luis ForexMart]

USD/CHF Technical Analysis: September 29, 2016

The USD/CHF pair is in a range bound trading. There is no expected changes for the levels to break where both resistance and support remains the same. This does not mean lack of activity but prices at steady. However, this makes range trading to be pointless when traders would grab the prices quickly of the consistency in support and resistance. This makes the environment toilsome to avoid forced trading.

Traders should not be complacent with patterns showing consistency. It is better to weigh the risk-reward ratio as this would still fluctuate later on.There is a risk that one trader to wipe out all the smaller profits. Also the current range-bound condition may create a false level of confidence in traders.

The resistance zone becomes more rigid as after retracement of 61.8% from .9948 Fibonacci level creating a double layer. This trend was last seen on the later part of July. hence, a short term level of resistance is beneficial to be used as a n auxiliary range within the wider long-term range.

 

[Luis ForexMart]

Technical Analysis for EUR/USD: September 30, 2016

The EUR decreased its value after Germany’s Unemployment Change report turned out to be far weaker than what traders and investors had expected. Meanwhile, the USD strengthened slightly after hints that the Fed might possibly implement an interest rate hike before the year ends.

The EUR/USD pair meanwhile had its support levels at 1.1200 points and had a lackluster performance during Thursday’s trading session. The currency pair’s price levels remained inactive at the 1.1200 - 1.1230 during the London trading session. The 50, 100, and 200 moving averages remained on neutral territory, with resistance levels at 1.1250 and support levels currently at 1.1200.

The MACD is currently at the center of the range. If the MACD returns to negative territory, then this will signal a strengthening of sellers, while a move into the positive territory is an indicator of a possible takeover of buyers in the financial market. The currency pair’s RSI levels remain at the neutral range.

Should sellers be able to force down pricing levels below the 1.1200 range, then the currency value of the EUR/USD is expected to go up at 1.1150. However, it is also highly possible that this would even go as far as the 1.1250 trading range.

Julianne - Technical Analysis

Advego percentage: The uniqueness of the text 98% / 100%. Satisfactory unique text.

 

[Luis ForexMart]

Fundamental Analysis for USD/CAD: September 30, 2016

The USD/CAD pair finished last trading session with its resistance levels resting at 1.3120 points and support levels at 1.3060 points, with the currency pair merely consolidating during the rest of the trading session since there was no major event that came from Canada yesterday. However, the GDP output for Canada will be released today, and this is expected to create a significant insight with regards to the performance of the Canadian economy. Canada’s economy has been steadily weakening during the past few months, although recent data from the nation has not yet been reflecting these changes.

However, the Bank of Canada has been hinting at this particular weakening in their economy, as well as the effect of lowering oil prices on the nation’s economic output and speculators are saying that this might ultimately lead to the BOC cutting back on its interest rates.

The USD/CAD continues to be bullish, mainly because of the current state of the Canadian economy. The USD strengthened as Deutsche Bank’s issues were brought up during the US session which caused the USD to rally at 1.3180 points and is now currently at 1.3153. Support levels are at 1.3060 while resistances are within the range of 1.3200 and 1.3255 points.

 

[Luis ForexMart]

Fundamental Analysis for GBP/USD: September 30, 2016

The GBP/USD pair continued to sway between 1.2950 and 1.3050 with no definite direction. This indefinite stance of the GBP/USD was mainly caused by an expected break on both sides by traders but has not since occurred. However, the value of the currency seemed to be controlled by EUR/GBP cash flows than any other fundamental factors.

The issues surrounding Deutsche Bank also added uncertainties to the GBP/USD pair’s stance. Deutsche Bank’s recent issues caused stock markets to have a risk-off sentiment and caused the S&P and other technical indexes to drop in value. Moreover, this has caused the pound to decrease its support levels at 1.2950 during the last trading session. Traders should take extra precautions as this might cause major shifts in the financial market and may also cause the USD to increase its value in general.

Speculators are expecting added volatility to the market due to the London fix, as well as a major news announcement from the UK government which is scheduled to be released today.

 

[Luis ForexMart]

EUR/USD Fundamental Analysis: September 30 2016

Today has been in favor for EUR/GBP instead to EUR/USD. Traders have been confused to the movements made by Euro but it'll be much clearer if they already inferred the factors that cause such complicated actions. Moreover, major news within the U.S and Euro does not have make any impact to the pair rather than it's about the heavy transactions flow at the end of the month by which the euro is associated to.

Many factors are to be considered in the end flows such as the membership fee of the UK to EU that are required to be paid every end of the month or depending on the level of the liquidity and volatility in the market. Another driving force is the activity of euro yesterday since there are large number of EUR buying and selling.

The euro and greenback attempted to bid within the upper side where it attained a high resistance around 1.1250, however, the news regarding the Deutsche bank's problem caused the pair to establish a downward slope.

Due to this event, the market got panic because there is a tendency for a risk appetite wherein brings positive strength for the USD. The pair's trading range for today intersects the 1.1180 and 1.1250, seeing that the euro have suffered from a high and low positions brought by the end month flows.

It is important for the traders to be cautious about the effects that the bank company would bear. It is safer to execute your trades within the extreme ranges.

 

[Luis ForexMart]

AUD/JPY Technical Analysis: September 30, 2016

Recovery of Aussie could occur even before the next policy meeting of the Reserve Bank of Australia this 4th of October. The AUD/JPY pair bounced back to its key support level as it is expected for Australia’s Central Bank Governor Philip Lowe to keep the benchmark of interest rate as low as 1.50%.

The pair may continue to retrace this season because of the low-yielding market that is in advantage for the Australian dollar. The support level is at 75.80 with a retracement of 23.6% and an expansion of 38.2% to 76.10. Hence, it is possible for a closing price higher that 77.90 with 38.2 retracement for a September high at 79.12. However, the 100-day SMA showed at 77.92 curbs the value of Aussie throughout the summer season.

Traders should lookout for a bearish trend that may happen again since 2014, when the short to medium-term falls short to reach the September high at 79.12.

 

[Luis ForexMart]

AUD/USD Technical Analysis: September 30 2016

The dollar had substantiate after the remarks of Yellen regarding the advantages in supporting the central bank in purchasing stocks. The covenant OPEC for the oil price reduction also helped the economy to further improve from the latest plunge.

AUDUSD settled a bullish tone yesterday. While buyers managed to drove a higher price at 0.7700 where the pair had already broke the level. Nonetheless, the Aussie and U.S dollar did not sustain its position for long and return to a lower price at 0.7650.

The pair make a firm position over the moving averages as seen in the 4-hour chart. The 50 and 100 EMAs crossover the 200-EMA. Resistance is hovering at 0.7700, support achieved the 0.7650 level.

MACD presented the same result and reserved the strength for the sellers. RSI settled in a neutral position.

 

[Luis ForexMart]

GBP/USD Technical Analysis: September 30 2016

The pound demonstrated a weaker position yesterday even though the UK data presented positive results as well as Yellen pronounced her support to dollar.

The daily high of the pound is set at 1.3050 that enabled for the currency to get back to its previous standing. But the pair slowly fell to the 1.3000 level. Moreover, the moving averages are descending while the pound had a conflict in moving over the 50-EMA. Resistance met the 1.3100 level, support occupied the 1.3000 region. MACD managed to reach the middle point. If the indicator fell in the negative zone, the strength of the seller will increase and if attained a positive domain, it is the buyers who holds the control on top of the stock exchange. RSI also get down in a neutral area.

 

[Luis ForexMart]

USD/CNH Technical Analysis: September 30, 2016

Chinese Yuan trades lower than USD when it comes to offshore trading because of the incoming holiday period in China. Thus, it is expected for the Yuan rates to increase both onshore and offshore interest rates.

A Morning star pattern showed with the support at 6.6500 trades at a short-term range between the support level at 6.6700 and resistance at 6.6860. The 50-day average continue to sustain the prices movement.

A move lower than 6.6700 is more likely to proceed lower at 6.6500 then to 6.6224 which circumstantially shows a long term trend going upward. The bullish trend could prolong when a break is seen above resistance at 6.6860 level or even higher than 6.7 handle.