Daily Market Analysis by ForexMart

[Luis ForexMart]

USD/CAD Technical Analysis: May 26, 2017

The U.S. dollar against the Canadian dollar declined in the beginning of Thursday trading session. The OPEC announcement has been released saying the production cute has been extended for another nine months. Although this is already expected, the downtrend occurs because of the possibility for a sell-off in the oil market as reflected in the hourly chart.

A break higher than the 1.35 region would induce this pair to move higher reaching up to 1.36 handle. Yet, if an exhaustive candle is formed, the market would proceed to a sell-off. The next few sessions are relevant to determine what happens in the future o f this pair.

The OPEC was not as aggressive as expected but the production cut decision is in line with the market’s expectation. Long-term traders would see a buying opportunity to the current condition of the oil market. However, it is safer to wait for a longer rally for the day before doing so, Overall, the market is moving uptrend for long-term which has had a rough trading last week.

It may be best to wait on the sidelines for the next 1 to days before trading this pair. The Moving Averages were not doing well but there is a chance for loonies to soften in the long-term. The 1.36 level is a significant psychological level for long-term to put on hold long-term orders and traders should wait until the current trend has been settled before placing orders.

 

[Luis ForexMart]

AUD/USD Technical Analysis: May 26, 2017

The Australian currency endured an extreme volatility amid session on Thursdays, making a gapped through the top of 0.75 handle and fell lower. In the past few days, it appeared to be interesting due to the weakening of the ascending momentum. With this, the risk of the decline is within reach and in case that the gold markets are able to keep the support around $1250 level, it will accelerate the downtrend.

The market is currently following an uptrend line which positioned under the actual pricing. The market broke underneath the ascending line which could be one of the reasons to extend the decline. When this happens, the level below 0.74 is expected to set off a positive target for many traders.

Moreover, the commodity market should be taken into consideration when it comes to Aussie which includes the copper and gold. The previous volatility of the AUD makes it difficult to hover within this position, it requires a break on top of the current highs or a significant breakdown in order to set actual money to work.

The choppiness is also extended since traders dominate the overall place with regards to the projections on the interest rates in the United States while Asian appeal for base metals from Australia.

A breakdown underneath the 0.7440 range will confirm for a roll over which signaled for a lower pricing, nevertheless, the noise prevails that causes the market to be a tough one to engage with.

 

[Luis ForexMart]

GBP/USD Technical Analysis: May 26, 2017

The British currency ride out a volatile session amid Thursday trades, reaching the top of 1.30 region in the day and rolled downwards substantially. Further support can be found in the uptrend line which reflects for another round of rally.

The market could likely offer buying opportunities for the GBP/USD, however, the actual signal intended for the long-term trading that suggests a move over the mark 1.3050. This implies that the trend will continue until the 1.3450 area that would be the top of the former consolidation region towards the weekly charts in the long-term.

Buying the dips could possibly remain to exist along the way while the trading position shall maintain as small as possible. Since the market will continue to be highly volatile due to remarks from the UK and EU people privy to the British exit.

As things go because of volatility, dealing with the market will going to be delicate and it is important to sustain a small position. This way could be the best idea to go up against any types of risks we may face.

It is recommended to cut in half anything you feel you are comfortable with, so you can employ twice the stop loss. This could help you to stay in a market where uncertainties are extraordinary, however, it appears that buyers in the longer-term will extend its involvement with the Cable as the sterling became oversold at some point.

As the volatility continues, we should initiate to build up higher highs once more including a long position as well. Selling still not an option as we deemed that the absolute floor can be found at 1.2750.

 

[Luis ForexMart]

EUR/USD Technical Analysis: May 26, 2017

The EURUSD is trading in sideways trying to move near the resistance region at 1.1265 mark, however, failed to take its position and plunged amid North American trading hours.

The jobless claims showed tight data during its Thursday’s release and were offset through a dovish tone indicated from the minutes of FOMC meeting issued on Wednesday by the Fed.

The predictions failed to some extent which triggered the Fed to make its final decision on Friday while Fed funds continued to have a strong expectation that the bank will take action.

The pair keeps forming a bull flag pattern which acts a pause to refresh. The price consolidated under the resistance level at 1.1299 near its November 8 highs.

The support approached 1.1132 area close to the 10-day moving average. The momentum appeared to be neutral while the MACD histogram moved downwards indicating a down sloping positive momentum. The RSI further trailed lower from the overbought territory as it prints 67 reading. This is the upper end of the neutral range which suggests for a consolidation.

 

[Luis ForexMart]

USD/CAD Fundamental Analysis: May 26, 2017

The USD/CAD pair has been projected to be highly dependent on the state of oil prices as well as the OPEC meeting held yesterday, and in fact, the loonie skyrocketed in value as the OPEC meeting concluded yesterday’s meeting on a somewhat dismal note as far as the markets were concerned.

The market had initially hoped that the OPEC members would approve an extension of the production cuts since the majority of them are expecting deeper production cuts in the future. However, what the OPEC members did was to extend the production cut deal for another 9 months, with both Iran and Libya given an approval to maintain its current status quo. This turned out to be a huge disappointment for the market in general, and this caused oil prices to drop after a large selloff occurred. This was then especially unfavorable for the Canadian dollar, particularly for the Canadian economy as its fate relies on oil prices. As of the moment, the USD/CAD pair has reverted by 80 pips as the loonie starts to drop in value. The currency pair was also propped up even more by the dollar strength and now the pair is back at its support-turned-resistance level of 1.3500 points. The market will now be monitoring how this pair closes down this week’s session since if it manages to close down at over 1.3500 points, then this is an indicator that the bulls have regained control of the pair and the USD/CAD could possibly be poised for more increases. On the other hand, if the pair closes down at under 1.3500 points, then this means that the bears are now dominating the pair and the market might have to brace themselves for more selling at least in the short-term.

The US economy will be releasing its durable goods data and its Preliminary GDP data within the day, although traders are advised to sit back and wait for the session to close down before making any significant moves.

 

[Luis ForexMart]

GBP/USD Fundamental Analysis: May 26, 2017

The strength of the greenback has been the dominant market trend during the previous trading session. In addition, the bulls of the GBP/USD pair are also having a hard time with regards to keeping the value of the cable pair afloat, which is seen on how the bulls had repeatedly attempted and failed to break through 1.3030 points even though the USD has clearly dropped in value. This development shows just how the bears are slowly gaining the upper hand with regards to taking control of the cable pair.

But on the bright side, the drop in the cable pair’s value was not as much of a crash as initially expected since the pair’s drop has been somewhat slow and steady. But then again the corrections of the pair is now starting to get more significant, while its reversions are becoming more and more shallow, which is an indication that the pair’s bears are indeed taking over the currency pair. The GBP/USD pair was unable to even reach the 1.3000 range as the greenback starts to regain more strength due to the market re-pricing the interest rate hike next month.

For today’s trading session, the market is expecting the release of the Preliminary GDP data and the durable goods data from the US, while the British economy is not scheduled to have any economic releases for today. The GBP/USD pair is then expected to remain under pressure for the entirety of today’s trading session.

 

[Luis ForexMart]

EUR/USD Technical Analysis: May 29, 2017

The Euro paired against the U.S. dollar slumped after initially surged in the beginning. The volatility is anticipated to persist because of the possibility for the Federal Reserve to raise its rates. Moreover, the issue concerning Brexit is also problematic while the market is focused on easing of the European Central Bank.

The market will persist to have a choppy trading session although it is seen to consolidate between the 1.05 level as the base and 1.15 level as resistance. When a shooting star pattern is formed indicating a downtrend from here while expecting the 1.10 level to be supportive. There will choppiness in the market with minor consolidation for long-term.

With the presence of volatility, the market should be careful in placing orders and placing stops. The 1.1240 positioned to be resistive while directed to move downward for short-term.

It seems that there is high-frequency trading which is how it is to be in the future. It was one of the pairs that can be traded much easier, but over the past years, there is a lot of choppiness in the market. For the meantime, trading within range is advisable in trading this pair.

 

[Luis ForexMart]

GBP/USD Technical Analysis: May 29, 2017

The British pound dropped during the Friday session since nearing election. The election polls have an influence for this pair and there are concerns on how the Brexit will proceed. Nevertheless, this opens potential buying opportunities. There is a massive support found lower than the 1.2750 region which has been resistive before.

If the market was able to stabilize, the market would rush into the area and attempt to reach higher. For now, it seems that the market will go down while short-term surge offers selling opportunity. Short-term traders will have an easier position since the market is in a difficult situation.

The market will most likely move to and fro while the Brexit headlines will continue to be a major concern for traders and the British currency will be heavily impacted bringing volatility in the market. Although, this is somehow beneficial for traders.

Traders should monitor the major psychological levels particularly the 1.2750 level where long-term traders take over the market. There may be a lot of concerns making the market chaotic and traders should be careful not get agitated over this.

Overall, the market should see major volatile moves preceded by the major news. Hence, traders should be careful of their stop losses and reduce typical position size until the market steadies. Trade in small positions and adding more later which are advisable in trading this pair. If the pair breaks lower than the 1.2750 region, there is a possibility for buyers to dominate the market.

 

[Luis ForexMart]

GBP/JPY Technical Analysis: May 29, 2017

The British pound paired against the Japanese yen declined during the Friday trading session following the release of election polls much tighter than expected in Britain. Everybody expects the political route the way forward when it comes to leaving the European Union still leaves some doubt in the minds of the people.

The pair is usually sensitive to risk appetite that worsens the selling pressure. As the price breaks through the 143 level, the price would decline much lower towards the 142 handle as the market reaches to the support below. If the price surges from here, this would open more selling opportunities.

Traders should monitor the global risk appetite including the stock market, futures market and the condition of the British government and its currency, as these would affect the pair. As of now, the pair is moving downtrend searching for a significant level at 1.2750.

If the pair is able to stay in the upper region, the current trend could be reversed to find support below. Alternately, the price could decline towards the next significant support at 140 handle. Buyer should look to the long-term charts before placing orders. Overall, the market will be highly volatile and traders might want to consider major pairs related to the British currency for a faster turn around.

 

[Luis ForexMart]

NZD/USD Technical Analysis: May 29, 2017

The New Zealand dollar against the U.S. dollar has had a flat trading in early Friday but when the buyers returned, the price rose towards the 0.71 handle and above. Short-term pullbacks offer value in the market as the market tries to reach higher levels.

The 0.70 level gives off massively supportive until the price breaks lower which makes it complicated selling. Buyers will proceed with going long as the market is open climb higher although the pair is still involved with high risks. It is anticipated that the pair will most likely decline from here onwards that makes the pair more susceptible to risks.

There is a strong upward pressure for this pair and volatility would increase even more. The New Zealand dollar is highly sensitive to the overall commodity market that makes is important to monitor the commodity market not necessarily a certain commodity market.

There is high volatility in the market which will reflect in trading this pair. With the political concerns from the Washington, D.C., the pair is expected to be influenced despite its almost daily occurrence. Hence, traders should still be cautious that makes short-term trades more advisable to trade to make through the current problems concerning this pair.