Daily Market Analysis by ForexMart

[Luis ForexMart]

USD/CAD Technical Analysis: April 27, 2017

The U.S. dollar against the Canadian dollar attempted to go higher but the 1.36 level stayed strong. Hence, the price would quite go down as the oil market surge. The 1.35 level becomes a significant support which would open more buying opportunities. However, if the price breaks higher than the latest high, this would translate the market into a buy and hold condition. It may not be favorable to order short this pair as it might go higher.

 

[Luis ForexMart]

EUR/GBP Technical Analysis: April 27, 2017

The Euro paired against the British pound surged in the beginning of the Wednesday session. The Resistance level was too strong that the market failed to break out. Consequently, the price would most probably decline and tried to fill the gap formed at the beginning of the week. Traders who would like to sell for short-term could do so but should be heedful of a lot of noise present in the area and best to wait for the sidelines until a chance to go long comes in. A breakout of the current trading range would also be a propitious sign for this pair.

 

[Luis ForexMart]

NZD/USD Technical Analysis: April 27, 2017

The New Zealand Dollar was kept under pressured area on Wednesday. The price weakened during the night and stalled near the level 0.6900 in the late session of Europe. Meanwhile, technical indicators provided sell signals.

Resistance highlighted 0.6950 mark, support is at 0.6900 area.

As the drop in the NZD quotations was canceled, a stable growth came about and breakdown to the region 0.7050 for further indication of growth.

There are no significant releases from New Zealand as the pair will not experience any impact with regards to the exchange rate.

Inability to maintain 0.6900 would likely move the NZDUSD to continue its downward momentum through 0.6850.

 

[Luis ForexMart]

GBP/USD Technical Analysis: April 27, 2017

The British currency resumed trading on the side-trend yesterday. The price stayed within its renewed local highs during the entire Asian hours. Meanwhile, the selling pressure accelerated amid morning trades.

The sterling weakened and trailed to 1.2800 area in the post-open of London sessions, therefore eliminating a large portion of its gains.

Moreover, the moving averages presented buy signal, while the RSI and MACD en route south. Resistance came in at 1.2900, support entered 1.2800 region.

It is expected that the selling pressure will continue. A clear break under 1.2800 level would suggest resumption of the bearish period. The major will probably move ahead southbound near 1.2700 area, next to 1.2650 mark.

The major will probably move ahead southbound near 1.2700 area, next to 1.2650 mark.

 

[Luis ForexMart]

EUR/USD Technical Analysis: April 27, 2017

The EURUSD trailed downwards as it fell towards 1.0855 mark. It finished off the New York session near its lows found in the level 1.0897. The trading rate is near at 1.0906 which is the previous resistance of March highs. Additionally, President D. Trump already published his tax plan amid the press conference wherein Budget Director Gary Cone and Treasury Secretary Steven Mnuchin were present.

On one side, the pair consolidated its gains on Tuesday, however, maintain on top of the breakout level and would probably test much higher regions.

The differences in the yields among bonds and treasury were steady prior the meeting of European Central Bank Thursday.

Meanwhile, Draghi is expected to maintain a bullish sentiment as he was pressured to acknowledge the latest strings of higher economic data results.

The pair sustained its position on top of the support region where a downtrend in November to March highs are repeated approaching the 1.0820 mark.

Further support is found close to the 10-day moving average around 1.0743 region. The next focus for resistance is at 1.299 which is identified as the highs during November 8.

The EUR/USD preserved a positive momentum considering the MACD prints an upward slope pattern showed that the histogram climbed. It also produced a crossover buy signal as the April ends.

Moreover, the RSI manifested a bullish flag path which is very much alike to the consolidation witnessed in the exchange rate. The index surpassed over the 65 level but did not test the print. The recent print is 66 which is located on neutral range’s high-end and under the 70 overbought territory.

 

[Luis ForexMart]

GBP/USD Fundamental Analysis: April 27, 2017

The GBP/USD pair had a very consistent price action during yesterday’s trading session although it is still located at the 1.2900 trading range which the pair has reached a few trading sessions ago. Unless the currency pair manages to break through this particular trading range, then there is still a risk that the GBP/USD pair could revert anytime into the 1.2600 range in the short term. As of the moment, the pair’s bulls have total control of the currency pair but if the cable pair is still unable to make an upward move in the coming days, then the pair should be pushed down in order to gain more buyers, thereby creating just enough momentum for the pair to shoot past 1.2900 points once the pair rallies again.

During the previous session, the GBP/USD pair underwent a very restricted consolidation mode since the market was busy monitoring the results of Trump’s announcement later that day. After the tax plan was announced, the dollar dropped slightly in value and this caused the GBP/USD pair to climb above the 1.2850 trading range where it looks poised to further reach into the 1.2900 region. The announcement from Trump was unable to improve the dollar outlook as most of the details of the announcement was pretty much priced in by the market. In addition, the market is also somewhat skeptical on whether Trump would be able to actually push through with the tax plan as most of his campaign promises are left unsupported by members of his own party, such as the health care plan. This caused the USD to backfoot which was then used by the GBP/USD pair to gain an advantage in the market.

For today’s session, there are no expected releases from the UK economy while the US will be releasing its unemployment claims data. Traders are advised to take caution as choppy trading is expected today.

 

[Luis ForexMart]

EUR/USD Fundamental Analysis: April 27, 2017

The EUR/USD pair backfooted during the earlier parts of yesterday’s session following rumors that Trump will be releasing the details of his proposed tax plans within the week, with these tax cuts expected to be large-scale and caused the USD to surge and pushed the currency pair at 1.0900 and is now moving at the 1.0850 trading range, with traders now expecting Trump’s comments regarding this particular issue.

During the NY trading session, President Trump announced the details of his tax plan, although it appeared as if the market has pretty much cashed in on the situation as the USD was unable to make much progress as the said tax plan was announced. The USD instead dropped in value across the board since the market was expecting additional tax cuts and more details than what was initially released to the public yesterday. Simply put, the market expected more details but instead got headlines and other media-worthy bits. Nevertheless the tax plans are somewhat looking good although it has yet to be seen whether Trump’s tax plan would be easily approved or if it would have to face challenges which was what happened to the administration’s health care plan. The weakness of the USD caused the EUR/USD pair to revert towards just above 1.0900 points.

For today’s session, the ECB will be releasing its rate announcement followed by a press conference, wherein the central bank is expected to maintain its current rates. The market is now monitoring whether Draghi would induce the euro to go back down especially after the currency surged as a response to the first round of the French elections. Draghi would want to maintain the weakness of the euro, but then again this is somewhat impossible now that the region’s economic indicators are looking very positive.

 

[Luis ForexMart]

USD/JPY Fundamental Analysis: April 27, 2017

The USD/JPY pair reached its highest levels since March 31 during the previous trading session, although the currency pair was eventually pressured as the session draw to a close due to a slew of position-squaring and profit-taking prior to BoJ’s monetary policy meeting, In addition, the pair’s rally last Tuesday of 111.777, falling short of the March 31 high at 112.194. The USD/JPY pair ended yesterday’s session at 111.050 after dropping by -0.03% or 0.030 points.

During the early parts of yesterday’s session, the USD/JPY pair traded on a much higher note as the Bank of Japan was yet to release its news. The Bank of Japan is expected to maintain its current policies once the central bank announces the minutes of its policy meeting later today, with some analysts even saying that the BoJ could even possibly tone down its forecasts for inflation. Analysts are stating that the depreciation of the JPY as a reaction to the first round of the French elections has been a relief for the BoJ, and this is expected to take effect at least for the meantime.

Analysts are not expecting the Japanese yen to make any drastic movements once the central bank releases its monetary policy statement as well as its interest rate decision. The price direction of the USD/JPY pair is expected to be influenced by the movements of the US stock indices. If the earnings reports set to be released today are on a bullish note, then a risk-on session is expected, which will trigger the USD/JPY pair to move towards a much higher value.

 

[Luis ForexMart]

USD/CAD Technical Analysis: May 2, 2017

The U.S. dollar or Canadian dollar started with optimism on Monday session. Buyers stimulate the U.S. dollar to move higher overnight as it broke 1.3660 region and reaching the 1.3686 level during the middle Asian session. However, the further uptrend halted and started to decline. The resistance level is found at 1.3680 while the support positioned at 1.3610 level. The next resistance level goal would be at 1.3750. Overall, the technical indicators imply affirmative signs in trading.

 

[Luis ForexMart]

EUR/USD Technical Analysis: May 2, 2017

The EUR/USD pair kept the currency pair the same during the European holiday. A bullish pattern is seen although they might wait for the second round of French elections before the pair reaches new highs. The support moves in a downward sloping trend as it reaches the previous breakout level close to 1.0823 level and 10-day Moving average.

The Euro paired against the U.S. dollar hovered with the local lows during the Monday session. The spot declined during the night trades as sellers broke over the 1.0900 support level but failed to pull out off the region. The Technical indicators showing mixed market reactions.

The Resistance level is seen at 1.0900 while the support positioned at 1.0850 level. The EMAs indicates a positive signal to buy this pair while both MACD and RSI reversed. There is an immediate risk found in the lower channel but it would be best to wait to close in a daily level lower than the 1.0850 level before selling the pair.

There is a positive impetus seen in the moving average convergence divergence (MACD) giving a black index print in an upward sloping trajectory reflected. This means the exchange rate will be priced higher supported by the upward momentum RSI and the print at 65 lingers in the upper end of the neutral range that equates to a higher exchange rate.