Daily Technical Analysis by FxGrow

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FxGrow Daily Technical Analysis – 12th Jan, 2017
By FxGrow Research & Analysis Team

Gold Spikes Ahead of US Data

Gold extended bullish momentum this week taking advantage of weaker US dollar performance. Yesterday, Trump made an attack on local US companies which caused the US index to dilate bear forces, dropping to 100.70 9-Dec-fresh-lows. XAUUSD awaits major US news today and tomorrow both at 1:30 PM GMT and today at midnight, Yellen on behalf of US Fed will make a speech. Traders are awaiting these news to see how US dollar will perform facing strong gold performance.

Trend : Bullish Sideways

Resistance levels : R1 1213.94, R2 1222.89, R3 1232.48, R4 1142.08

Support levels : S1 1199.23, S2 1185.81, S3 1175.58, S4 1160.23

Remark : Keep an eye on US index as it's a strength measure facing gold. Also US data today will determine how gold will perform today and tomorrow.

For more in depth Research & Analysis please visit FxGrow.http://fxgrow.com/analysis-educatio...cal-analysis-fxgrow-free-forex-analysis-tools

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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FxGrow Daily Technical Analysis – 16th Jan, 2017
By FxGrow Research & Analysis Team

Sterling Banished on May's Weekend Hints, Awaiting Carney's Speech

GBP/USD gaped -175 pips between closing on Friday 1.2191 and Monday's opening 1.2016 on reports that PM May will emphasize the hard Brexit further more tomorrow on her speech in the after noon. May is expected to emphasis on curbing free movement of people by regaining control over Britain's borders and immigration laws. Doing so, the UK will lose access to the European Union's single market and resurfaced uncertainty over economic implication of the historic move.

Today, Gov. Carney on behalf of BOE will make an appearance at 6:30 PM GMT, Due to deliver a speech titled "Policy Issues Affecting the Bank of England" at the London School of Economics.

Trend : Bearish sideways

Key levels to watch: Daily Pp. 1.2028

Resistance levels : R1 1.2115, R2 1.2192 , R3 1.2277

Support levels : S1 1.1985, S2 1.1921, S3 1.1844

Remark : Keep an eye on Carney's speech today and PM May tomorrow. A negative content from May on "Hard Brexit" and restrictions between UK and ECB markets will increase further attacks towards support levels of GBP/USD.

For more in depth Research & Analysis please visit FxGrow.http://fxgrow.com/analysis-educatio...cal-analysis-fxgrow-free-forex-analysis-tools

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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FxGrow Daily Technical Analysis – 17th Jan, 2017
By FxGrow Investment Research Desk

Australian Dollar Sharpens as US dollar Shortens

The Aussie opened with a strong tone taking advantage first of weaker US dollar performance, second supported by positive local data on local home loans with 0.9% compared with -0.6% previous sessions. US index is vulnerable since yesterday with absence of US economic data to lean on. US index extended bearish momentum as it broke the 101 level today at 100.98, closing to Thursday's lows 100.70. As a result, AUD/USD rallied this morning from 0.7464 low, clocked a 0.7535 17-Nov-fresh-highs, currently the pair is trading 0.7515 intraday.

Trend : Bullish sideways

Key levels to watch : Daily Pp. 0.7479

Resistance levels : R1 0.7557, R2 0.7622, R3 0.7706

Support levels : S1 0.7478, S2 0.7402, S3 0.7312

Remark : keep an eye on US index which is still considered to be strong. long positions above Daily Pp will boost AUD/USD further more. A penetration for R1 level and stalling above it will rapid further bull wave towards R2&R3. Failing to withhold 0.75 level will result in a price range between R1 and S1 levels. A close below S3 level is needed to the cable to shift into bearish mood.

For more in depth Research & Analysis please visit FxGrow.http://fxgrow.com/analysis-educatio...cal-analysis-fxgrow-free-forex-analysis-tools

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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FxGrow Fundamental Analysis – 17th Jan, 2017
By FxGrow Investment Research Desk

EURO Levels Awaits ECB Interest Rates Decisions

Once again, the European Central Banks (ECB) will have the upper hand as they will decide on either to leave rates at current 0.0% or follow the path of US Fed recent 0.25% hike. The meeting is scheduled 8 times per year and this Thursday, 19 Jan, at 12:45 PM GMT. Last meeting was held on 8th of Dec 2016 and ECB decided to leave rates at 0.00%. Shortly by, Mr. Draghi held a press conference where he added that ECB will make a reduction of 20B Eur from original 80B Eur bond purchasing and market didn't digest Draghi's decision which resulted in collapsing EUR/USD levels, adding more weight on the Euro zone after going through hard Brexit.

Forecasts are to leave interest rates at current 0.00% but the devil lies in the details as Draghi will once again head a press conference shortly after ECB interest decision at 1:30 PM GMT. Draghi will have three choices.

1- Add additional cuts on 20B Euro from original 80B Eur which could depress the EURO further more.

2- Leave bond purchasing at current 60B Eur as markets are anticipating.

3- Increase the 60B Eur bond purchasing and this could restore confidence and boost EURO value.

On 19th Jan 2017, markets are expected to be highly volatile before and after the ECB min bid rate. On 8th of Dec 2016, EUR/USD levels peeked to 1.0873 high, then collapsed to 1.0597 low. Then extended bearish momentum the next day further more as the pair plunged to 1.0530. Traders can benefit from this unique event as market will be highly volatile.

Resistance levels : R1 1.0673, R2 1.0765, R3 1.0852, R4 1.0943

Support levels : S1 1.0541, S2 1.0468, S3 1.0358, S4 1.0258

For more in depth Research & Analysis please visit FxGrow.http://fxgrow.com/analysis-education/fxgrow-academia/fxgrow-blog

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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FxGrow Fundamental Analysis – 18th Jan, 2017
By FxGrow Investment Research Desk

Sterling: Hopes Hanging on Today's Local Data

GBP/USD rallied yesterday taking advantage of weak US dollar performance despite May's speech withholding uncertainties on UK's future economy plan. US index plunged yesterday $1.38, bottomed at 100.23 9-Dec-2016 fresh lows. Even though PM May held a press conference where she discussed hard Brexit further more and tails added up with following headlines.

1- UK is leaving European Union not half in or half out, but not leaving Europe

2- UK is seeking new and equal partnership between independent self governing global Britain and friends and allies in EU.

3- May is not seeking to adopt a model already enjoyed by other countries.

4- May will make sure to put the final vote in parliament by releasing Article 50.

5- UK will adapt a new transition phase but details were not mentioned.

GBP/USD bulls yesterday were also supported by positive local CPI at 1.6% compared with 1.2% on previous sessions. Sterling also awaits today local data at 9:30 AM GMT, first Average Earning Index, second Claimant count change which will either extend the bullish momentum or the pair will drop to recent level depending on the outcome.

Remark : Keep an eye on various economic data today. A positive UK data today will initiate further bullish wave towards 1.24 & 1.25 levels for GBP/USD. On the other hand, a disappointing outcome will wash the cable towards 1.23 & 1.22 levels.

For more in depth Research & Analysis please visit FxGrow.http://fxgrow.com/analysis-education/fxgrow-academia/fxgrow-blog

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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FxGrow Daily Technical Analysis – 18th Jan, 2017
By FxGrow Investment Research Desk

Canadian Dollar Poised Ahead of BOC Interest Rate Decision

USD/CAD sank yesterday to 1.3018 20th-Oct-fresh lows following the path of retreating US dollar at 100.23 low. Today, markets are awaiting BOC interest rate decision followed by a press conference for Mr. Poloz, head of BOC. Canadian economy is on top performance recently and was considered one of top performing economies during 2016 and Inaugurated 2017 with a positive trade balance 0.5B compared to -1.0B on previous sessions in addition to positive unemployment claims.

last schedule for BOC interest rate decision was on 7th-Dec-2016, and Polo announced that it is maintaining its target for the overnight rate at 1/2 per cent. The Bank Rate is correspondingly 3/4 per cent and the deposit rate is 1/4 per cent. Forecasts for today are to leave interest rates at current 0.5% with modification on monetary policy.

Trend : Bearish Sideways

Key levels to watch:

Resistance levels : R1 1.3148, R2 1.3277, R3 1.3390

Support levels : S1 1.3009, S2 1.2910, S3 1.2822

Remark : Since market forecasts are in accord with previous interest rate results, USD/CAD will depend mostly on technical levels.

For more in depth Research & Analysis please visit FxGrow.http://fxgrow.com/analysis-educatio...cal-analysis-fxgrow-free-forex-analysis-tools

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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FxGrow Daily Technical Analysis – 19th Jan, 2017
By FxGrow Investment Research Desk

Gold Makes Minor Downtrend Correction, Eyes On Trump's Speech

As expected, Yellen was at the right time, right place to lift collapsing US dollar this week. On Tuesday, US index bottomed at 100.23 after significant bullish opening on 2017 resulted in 103.81 peek. Yesterday, XAUUSD clocked a high 1217.71 after PM May's final determination for a divorce from EU, but Gold couldn't withhold high levels, at 7 PM GMT, an hour before Yellen's appearance, gold levels started shaking downward, and Yellen contributed further more through her speech where she laid out that US economy is positively stable it's up to Fed's objectives. As a result the sacred yellow metal extended bear forces and sank to 1197.65 low. Gold levels still have two articular stations where final price destination will be determined. First, US data today scheduled at 1:30 PM GMT. Second tomorrow's global anticipated Trump speech and analysts are in confusion whether Trump will make an attack on US local sector as he did previously with pharmaceutical companies causing USD to collapse, or he will address US citizens with patriotic speech that could result in energizing USD.

Trend : Bullish Sideways

Key levels to watch : Daily Pp 1209.70

Resistance levels : R1 1208.34, R2 1220.20, R3 1231.45, R4 1242.99

Support levels : S1 1197.29, S2 1184.37, R3 1176.87, R4 1165.21

Remark : The fundamentals for Gold levels are tied with today's US data at 1:30 PM but the main focus is on Trump's speech tomorrow. As for technical levels, a penetration for R2 strong level will fuel further bullish waves towards R3 & R4. Closing below S1 will favor selloffs and wash towards S3 level.

For more in depth Research & Analysis please visit FxGrow.http://fxgrow.com/analysis-educatio...cal-analysis-fxgrow-free-forex-analysis-tools

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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FxGrow Daily Technical Analysis – 19th Jan, 2017
By FxGrow Investment Research Desk

Crude Oil Levels Between OPEC-Compliance and US Inventories Today

Oil prices are ebb and flow between OPEC-compliance efforts to curb market surplus and US consecutive additional drilling to glut the market.

For the first time in 15 years, beginning of Jan, OPEC and several producers settled last year to cut supply which boosted oil levels to spike at 55.22 from a 27$ a year ago. The key here was how far will this agreement last and the commitment of respecting agreed share-quotas. On 2017, hints were sent that some countries are not respecting the settlement signs of cheating were fed to markets which caused oil bulls to take a breath, and slow the hike pace. In Nov-2017, OPEC made the final touches on the plan to cut its output around 1.20 MB per day to 32.50M. Russia, combined with other non-members pledged curbs around 560,000 bpd in Dec.

The biggest reduction came from Saudi Arabia, which told OPEC it cut output to 10.47 million bpd. Losses in Nigeria, which is exempt from cutting output because its production has been curbed by conflict, provided the second largest reduction.

The OPEC figures published on Wednesday showed the group pumped 33.085 million bpd last month, according to figures OPEC collects from secondary sources, down 221,000 bpd from November. According to Reuters. In short words, OPEC deal is falling into puzzles but perhaps on slow pace but the target will be achieved supported by analysts due to a significant increase in energy sectors specially china.

Oil levels are heading to $60 by mid 2017 according to Tarek Fadlallah, Nomura Middle East chief executive officer, as he discusses the outlook for the U.S. dollar and oil prices with Bloomberg's Shery Ahn and Yousef Gamal El-Din on "Bloomberg Markets: Middle East." (Source: Bloomberg).

In conclusion, oil prices declined as US decided to increase its stockpiles although some OPEC countries reduces production. OPEC and US are on opposite target terms since OPEC has the benefit of higher oil prices considering it's their main source of economy wealth and US is the largest energy consumer sector. Therefore a global supply glut remains a big concern awaiting further deals from OPEC members.

Markets are always on a weekly report with US crude inventories, today at 4 PM GMT, with further efforts to affect oil levels. On the other hand, China also plays a big role on oil demand knowing that it is the second largest consumer thus slower demand might be a result of weaker economy.

Remark : Look forward for US inventories today, a positive data will help oil prices to collapse to S1 51.13, S2 50.48, S3 49.82. The other scenario, in case of negative inventories not meeting forecasts, markets to expect bullish wave powered by disappointment and OPEC efforts towards R1 52.06, R2 52.94, R3 53.94.

For more in depth Research & Analysis please visit FxGrow.http://fxgrow.com/analysis-educatio...cal-analysis-fxgrow-free-forex-analysis-tools

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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FxGrow Fundamental Analysis – 20th Jan, 2017
By FxGrow Investment Research Desk

Market Volatility Pledged on Trump's Speech

Talk of the week, Trump's receiving the US presidential ribbon and how the market will react on his speech. But before that, let's go back in time and put puzzle pieces to one place to draw a clearer picture.

1- First on 3rd of Dec, US index rallied significantly ceiling 103.81 2003-fresh-highs, showing how strong USD is but the pace is critical. The next day, Wednesday the 4th, US index was on a date with FOMC meeting which resulted with briefing that US index is relatively high. Also, it could lead to inflation which is a nightmare for central banks. As a result, US index took a dip to 101.30.

2- This week, market awaited 2 speeches for Mrs. Yellen, head of US FED. First meeting was on Wednesday where Yellen boosted collapsing US index by positive speech, lifted US index to 101.33 high and the daily pivot was 100.88. The second speech was today early morning which didn't introduce new perspective for USD, and US index clocked a low 100.83. US index has a strong support level at 100.80. Now if we compare the three numbers, we can conclude that at these levels, the US Fed is satisfied and it's meeting their objectives.

Now comes today's long waited event, Trump's speech. There are three scenarios that can cross minds.

1- Trump, as his previous behavior, will make an attack on US local sectors resulting in US stocks collapse as well for US index.

2- Trump will make a speech matching the prestige of US presidency. A patriotic speech where he'll address US citizens with promise of good and strong economy that will result in energizing USD levels.

3- The event itself, a new president taking the lead despite the content of the speech will also send an optimistic wave through the US market that will boost USD.

In conclusion, whether Trump and Yellen are on the same page or not. Collapsing or bullish US index, the FOMC or Yellen will always try to make keep US index in the above mentioned levels where its meeting their inflation target.

Remark : This is a theory based on fundamental and technical analysis.

For more in depth Research & Analysis please visit FxGrow.http://fxgrow.com/analysis-education/fxgrow-academia/fxgrow-blog

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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FxGrow Fundamental Analysis – 23rd Jan, 2017
By FxGrow Investment Research Desk

EUR/USD Surges Ahead of Draghi's Speech

After ECB unchanged rate decision at 0.00% followed by a press conference by Mr. Draghi with a positive tone on EU, EUR/USD rallied to 1.0676 high. The pair extended bullish momentum after Trump's protectionist speech on Friday and clocked 1.0754 today followed by collapsing US index that bottomed today at 100.17 2017-fresh lows. Today, 11:30 PM GMT, Draghi will make a reappearance with a press conference to discuss EU zone further more. Also, tomorrow at 9:30 AM GMT, the final decision on EU court ruling and the release of article 50 will have an impact on EUR/USD levels.

Trend : bullish Sideways

Key levels to watch : Daily Pp 1.0708

Resistance levels : R1 1.0768, R2 1.0815, R3 1.0862, R4 1.0929

Support levels : S1 1.0691, S2 1.0627, S3 1.0570, S4 1.0486

Remark : Look forward for Draghi's speech today and the release of article 50 tomorrow which will impact EUR/USD levels.

For more in depth Research & Analysis please visit FxGrow.http://fxgrow.com/analysis-education/fxgrow-academia/fxgrow-blog

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.