Daily Market Analysis by ForexMart

[Luis ForexMart]

Technical Analysis for AUD/USD: October 3, 2016

The AUD/ USD pair closed the last trading session in the higher trading range but was still unable to go beyond the 0.7700 range, with selling interest rates going stronger as compared to last week. The currency pair has now settled between the 0.7450 - 0.7700 trading range. The pair temporarily fell below 0.7600 last Friday but was able to recover almost immediately due to Fibonacci support.

The volume of the Asian trading session for this week is expected to be somewhat limited due to China’s golden week. The daily charts are still exhibiting an upward trend, with prices still above the 20 SMA. Momentum levels are now consolidated above the 100 level and RSI indicators are seen to go beyond 56.

The 4-hour chart now has a limited upward trend, especially since prices are having difficulty exceeding above the 20 SMA. On the other hand, other technical indicators are losing their momentum and is expected to go south. Monday’s session might be marked by a slight downward extension at the 0.7600 level.

 

[Luis ForexMart]

Fundamental Analysis for USD/CAD: October 3, 2016

The USD/CAD pair continued to trade within the broad range but market players are expecting the currency pair to be on the bullish side. The USD/CAD has proved to be one of the most volatile currency pairs with its 2-way movement but still in the wider trading range between 1.3050 and 1.3280. The release of the retail sales data last Friday turned out to be bad for the market, causing the CAD to decrease earlier this week. However, the bullish stance of the pair was still not able to break through the 1.3280 trading range.

The CAD then bounced back after the release of the OPEC statement, where oil producers have agreed to cut down oil production in order to increase oil prices. The currency pair then decreased in value. But Canada’s GDP data came out way above the expectations of investors, increasing the USD/CAD’s value but not enough to break through the bottom range, therefore settling within the neutral territory.

For this week, investors are awaiting the release of the Canadian employment report as well as the NFP report which is both slated to come out this Friday. Market players are expecting increased volatility once the mentioned economic data are released, together with the strengthening of the US economy due to an impending rate hike and the weakening of the Canadian economy due to the OPEC report.

 

[Luis ForexMart]

Fundamental Analysis for USD/JPY: October 3, 2016

The USD/JPY pair had a double-sided trading session on Friday after investors had split reactions to reports of an alleged settlement between the US Department of Justice and banking firm Deutsche Bank. The currency pair finished the last trading session at 101.318 points, going up by +0.29% or 0.288 points, with the USD finishing higher against the Japanese yen.

The BoJ’s decision on its monetary policy is now settled, and investors are now shifting their focus on investor sentiment when it comes to the general direction of the market. Analysts are expecting this particular trend to continue up until Monday’s session especially due to lack of important economic data to be released this week and because of limited speculations prior to the release of the US Non-Farm Payrolls Report this coming Friday.

Traders are now becoming particularly conscious with various economic events and news as they await the next announcement from Bank of Japan. The direction of the USD/JPY was influenced by the US Presidential Debate last week, the Deutsche Bank issue, and the statement released by the OPEC. For this week, speculators are expecting that the USD/JPY would most likely be influenced by the release of the US stock indices and the US jobs report which is set for the end of the week.

 

[Luis ForexMart]

USD/JPY Technical Analysis: October 3 2016

The declaration proclaimed by the OPEC regarding the reduction of oil cause the Japanese currency to deplete. While the China official PMI provided a safe harbor for the yen. The bearish outlook persist to be unchanged. JPY lose its current profits last 30th of September but still it procured the final price against the USD. A bullish pattern run down the 101.70 making the price to bounce off to the 101.40 region.

USDJPY passed through the 100-EMA and tested the 200-EMA as shown in the 4-hour chart. But buyers had a decline around the 200-EMA resulting for a rollback in prices. Current resistance hit the 101.40, support meet the 100.40 region. MACD stayed over the same position and signaled strength for the buyers. RSI vacillates around the overbought zone.

 

[Luis ForexMart]

GBP/USD Technical Analysis: October 3 2016

Despite of the major news reported regarding the economy of U.K, the sterling still grasp a firm position versus the greenbacks. The value for the pound bear under some pressure last 30th of September. The pair exerted to boost but was able to reach 1.3000 only. However, the buyers cannot contain its current level causing it to move back to lower level. Moving averages 50, 100 and 200 had an upsurge since the price were unsuccessful to break the 50-EMA.

Resistance is identified at 1.300, support closes its position at 1.2900. MACD had a downturn that strengthened the sellers. There is an ongoing consolidation for the RSI within the oversold territory.

 

[Luis ForexMart]

EUR/USD Technical Analysis: October 3 2016

The European currency had slowed due to the predicament that the EU bank faces. The greens also chopped down from its weekly high in defiance of the clear-cut economic releases issued by the United States, specifically financiers that are involve in the current condition of the Deutsche Bank.

Moreover, EUR/USD plunged to a 1-week low but was able to recover around the 1.1200 area. The pair stopped its movement within the 1.1250 region by which the price roll back had occurred and made a smaller quantity of pips until the closing of the day trading. The overall moving averages remained intact in the neutral position. Resistance are well set in the 1.1250 level, support ended at the 1.1200. MACD sways along the center of the histogram. If it arrived in the positive zone, it indicates the increasing strength of the buyers. In contrary, the negative territory identifies the ability of the sellers to drove the market. RSI settled in the oversold position.

 

[Luis ForexMart]

EUR/USD Technical Analysis: October 4, 2016

The EUR/USD pair hit all-new lows after succumbing to pressure during the New York trading session as the US dollar received a boost from positive US economic data. The EUR/USD pair was able to break through its range from the past session and was able to approach the 1.12 trading range but also managed to have support just a few pips beyond the psychological level.

September saw the ISM Manufacturing Index increase by up to 51.5 points from August’s 49.4 points. The ISM index also went into the contraction range for the first time since February and went above the expected 50.3 range. Market sentiment surrounding the Deutsche Bank issue also somewhat stabilized during Monday’s session even as the German market was closed due to a holiday. European indices also increased due to an upsurge in oil prices.

Technical support levels, particularly immediate support levels, are seen at 1.1183 points in the 100-day SMA, 1.1160 in the 200-day SMA, and 1.1122 points at the September and August lows. Resistance levels are at 1.1250 points for the September highs, 1.1283 points for the September 15 high, 1.1326 for the September 8 high, and 1.1365 for the August trading high.

 

[Luis ForexMart]

GBP/USD Technical Analysis: October 4, 2016

The sterling pound was hit hard during the last trading session after UK Prime Minister Theresa May released a statement saying that the UK will be starting its formal process of leaving the European Union this coming March 2017. The GBP/USD pair is aligned fundamentally and technically, and analysts are expecting a retesting of the pair at 1.2796 points. The currency pair is now in full bearish stance.

The GBP/USD’s inner trend line, bearish channels, 38.2, L3, and multiple rejection points at POC 1.2915-30 might cause the pair’s price to become rejected if another retracement occurs. However, if the GBP/USD would extend at the 1.2845 trading range, then there is a possibility that the pair would go beyond the 1.2796 trading range.

In order to maintain its short-term bearish stance, then the currency pair must be able to stay below the 1.2950 trading range.

 

[Luis ForexMart]

Technical Analysis for USD/JPY: October 4, 2016

The USD/JPY pair surged to attain its two-week high of 102.27 points as a result of positive risk appetite after easing Deutsche Bank issues and OPEC oil statements increased the possibility of an interest rate hike in December.

Meanwhile, the Japanese yen is still in the bottom rung of its trading range for the sixth straight session, its longest bottom-trend streak since March. The currency pair bottomed out at the 100.08 range last week after an increase in oil prices market risk-ons, as well as easing in Deutsche Bank concerns.

Moreover, the Japanese yen is most likely to increase its selling power in the Asian session today after foreign QE talks by the Bank of Japan is seen to be gaining momentum. The currency pair is now dependent at the wider market sentiment. The market will now be focusing on the shares of banking firm Deutsche Bank, which has previously ended Monday’s trading session with marginal losses.

If the USD/JPY pair manages to break above the 102.65 trading range, then this would expose the pair to the 102.78 range and go beyond an expected hurdle at 103.54 points. However, if the pair would go below its support levels of 102.00, then this could trigger a movement towards 101.57 points, which would then lead to lows at 101.00 points.

 

[Luis ForexMart]

USD/JPY Fundamental Analysis: October 4 2016

On Monday marks the fifth time that the greens earned larger against the yen while USDJPY have ended its route at 101.635. In addition to it, the Japanese currency had been barely affected to the Tankan survey conducted by the Bank of Japan. The economic assessment notified that the confidence level of the leading Japanese manufacturers have laid low from July to September while the service-sector sentiment fall off for almost two years while dealers have been affected also as the economic data were publicized last week.

The statistics bureau of Japan declared that there is an inflation ongoing in the core consumer price by 0.5%. The changes became apparent during the month of July.

The greenbacks have increased due to the positive report finalized by the U.S ISM Manufacturing PMI with an estimate score above the 50.4 to 51.5 compared to previous month with an average below 50.0 to 49.4. Due to the U.S. Construction Spending report, the USD were able to limit its profit seeing that the data came below at 0.7%.

Major economic news are not yet available in the U.S as of today, causing the pair to be determined as an in-demand assets for the investors. The improvement made in the Asian and European stock market have resulted for a stronger pair for the financial sector of the United States.

Nevertheless, it is recommended that capitalist should be very cautious in acquiring yen and greens due to the issues concerning the market sentiment preceding the U.S. Non-Farm Payrolls report to be issued on Friday.

Additionally, the status of the crude oil should also be watched over since prices were accelerating that might originate a pressured area for the USD by which the yen will support.