GBP/USD Technical Analysis: July 4, 2018
The British currency had a significant rally during trading course yesterday and further reach the important region of 1.32. It seems that the market will continue to search for sellers around that level, while a break on top of that area will show the next target above the 1.33 mark. This market remains to be very noisy, however, the market is predicted to move according to headlines and uncertainties at the end of the day.
The hourly chart formed a “higher low” but it is too soon to consider the market reversal in the longer-term. Forecasts show that the greenbacks would likely continue to gain strength in general while traders buy additional treasuries. Aside from that, there is some unknown factor relative to the United Kingdom and participants should take extra care.
Since today is the Independence Day holiday in the United States, we should anticipate a very noisy market unless liquidity will flow intensely that could prompt further shocking news. Generally, we can expect for some quiet fluctuation in the trading area.
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AUD/USD Technical Analysis: July 3, 2018
The Aussie dollar had a significant break down during the trading course yesterday and further cut through the 0.7350 zone. There is a lot of support underneath that level and it appears that players attempt to slice through it. If this happens, the market would likely move to the 0.73 handle or even to the 0.72 mark eventually. At present, rallies may be sold-off since Sino-American affiliation continue to fall apart. The nearing deadline for the trade tariff on Friday appears to be true but traders are also concerned about China’s retaliation plans.
Market players will be confident to buy the Australian dollar again until the trade pressures eased down due to bid for safety. As of this writing, the market may drive lower but traders might experience an occasional bounce. Also, the markets may resume moving based on the headlines while the downside may be the most convenient way to trade, considering that the markets avoid risks.
The Aussie dollar had a significant break down during the trading course yesterday and further cut through the 0.7350 zone. There is a lot of support underneath that level and it appears that players attempt to slice through it. If this happens, the market would likely move to the 0.73 handle or even to the 0.72 mark eventually. At present, rallies may be sold-off since Sino-American affiliation continue to fall apart. The nearing deadline for the trade tariff on Friday appears to be true but traders are also concerned about China’s retaliation plans.
Market players will be confident to buy the Australian dollar again until the trade pressures eased down due to bid for safety. As of this writing, the market may drive lower but traders might experience an occasional bounce. Also, the markets may resume moving based on the headlines while the downside may be the most convenient way to trade, considering that the markets avoid risks.
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GBP/JPY Technical Analysis: June 28, 2018
The British currency had seesawed during Wednesday trading session and rebounded from the ascending trend line below to turn around and touches the ¥145.33 level. Apparently, the market will continue to have a lot of noise in general due to fears about trade wars. However, there are certain attempts to seriously break down through the upward trendline that can be seen on the hourly. An ability to move under that level would allow the market to reach the ¥144.50 level or lower.
Otherwise, the market might bounce from that point when some good news was released. From there, the market is expected to go near the ¥146 level, which is an area of resistance barrier of various minor in between that requires a significant amount of momentum to gain a position above.
Remember that the GBP/JPY pair is predicted to be extremely volatile and highly sensitive with regards the news and current issue between China and the United States. It is believed that this market is going to receive a lot of bad news despite the significant bounce from the remarks of Donald Trump that he is not interested to further heighten the trade war to hold China from investing in the US technological firms.
The British currency had seesawed during Wednesday trading session and rebounded from the ascending trend line below to turn around and touches the ¥145.33 level. Apparently, the market will continue to have a lot of noise in general due to fears about trade wars. However, there are certain attempts to seriously break down through the upward trendline that can be seen on the hourly. An ability to move under that level would allow the market to reach the ¥144.50 level or lower.
Otherwise, the market might bounce from that point when some good news was released. From there, the market is expected to go near the ¥146 level, which is an area of resistance barrier of various minor in between that requires a significant amount of momentum to gain a position above.
Remember that the GBP/JPY pair is predicted to be extremely volatile and highly sensitive with regards the news and current issue between China and the United States. It is believed that this market is going to receive a lot of bad news despite the significant bounce from the remarks of Donald Trump that he is not interested to further heighten the trade war to hold China from investing in the US technological firms.
AUD/USD Technical Analysis: June 27, 2018
The Australian currency had slightly decline amid trading course on Tuesday and was able to touch the 0.74 level below. According to the chart, the light blue circle that formed a “W pattern” at 0.7350 zone indicates some bullish reversal signal, the said level is considered significant in the longer-term chart. With this, it seems that we are in a neutral position attempting to reverse the overall market sentiment which would cause a lot of noise.
In case that market will break on top of the 0.75 handle, this shows a bullish sign which appears to hang in the trade of a significant trend in the longer-term. Below this zone seems to offer enough support to help the market buoyed. In general, the market may continue to be noisy but holding a position above the significant area of 0.7350 would likely attract more buyers.
Aside from that, the weekly charts generated a massive hammer formation last week which showed a bullish sign, as expected. Hence, there is low chance to have a good rebound which is in favor of the short-term charts. Otherwise, a break under the 0.7350 mark would pull down the market toward 0.70 zone.
The Australian currency had slightly decline amid trading course on Tuesday and was able to touch the 0.74 level below. According to the chart, the light blue circle that formed a “W pattern” at 0.7350 zone indicates some bullish reversal signal, the said level is considered significant in the longer-term chart. With this, it seems that we are in a neutral position attempting to reverse the overall market sentiment which would cause a lot of noise.
In case that market will break on top of the 0.75 handle, this shows a bullish sign which appears to hang in the trade of a significant trend in the longer-term. Below this zone seems to offer enough support to help the market buoyed. In general, the market may continue to be noisy but holding a position above the significant area of 0.7350 would likely attract more buyers.
Aside from that, the weekly charts generated a massive hammer formation last week which showed a bullish sign, as expected. Hence, there is low chance to have a good rebound which is in favor of the short-term charts. Otherwise, a break under the 0.7350 mark would pull down the market toward 0.70 zone.
GBP/USD Technical Analysis: June 19, 2018
The Sterling pound slightly weakened amid Monday trading course and further moved lower to the 1.32 zone. This level is considered a round psychological significant number but it seems that the market will search for additional support below the 1.30 area. It is also possible that rally sell-off will resume since the American dollar is expected to continue to attract traders who badly need protection.
A break over the 1.33 handle would allow a higher move to 1.34 level. After the extreme sell-off on Thursday, this would be a difficult scenario to reverse things, and the momentum is believed to be on the side of the sellers regardless of any situation. Forecasts also show that the level below 1.30 would likely be a massive support area and a break down beneath indicates a negative scenario.
There is high chance that the market will see a “sell the rallies” type of consolidation in the near-term, which means pushing a move to the downside in the longer-term. Nevertheless, good news could help to turn things around.
The Sterling pound slightly weakened amid Monday trading course and further moved lower to the 1.32 zone. This level is considered a round psychological significant number but it seems that the market will search for additional support below the 1.30 area. It is also possible that rally sell-off will resume since the American dollar is expected to continue to attract traders who badly need protection.
A break over the 1.33 handle would allow a higher move to 1.34 level. After the extreme sell-off on Thursday, this would be a difficult scenario to reverse things, and the momentum is believed to be on the side of the sellers regardless of any situation. Forecasts also show that the level below 1.30 would likely be a massive support area and a break down beneath indicates a negative scenario.
There is high chance that the market will see a “sell the rallies” type of consolidation in the near-term, which means pushing a move to the downside in the longer-term. Nevertheless, good news could help to turn things around.
GBP/USD Technical Analysis: June 18, 2018
The British pound was able to dodge the immediate impact of the rise of the dollar while the euro dropped by two significant points that dominate the market in the previous week. The dollar gained from the rate hike which started by the Fed and the positive outlook of the Fed in the economy.
The hawkish sentiments gave t chance to the dollar to rise and the dollar bulls to plan ahead with two more rate hikes to look forward to. The Fed gives similar signals which still yet to be seen if they would continue the process and they would implement this in a specific period of time later on. We have witnessed that the rate hike would have minimal impact on the market, especially on the pound.
It seems that everything is going smoothly in the UK as the Brexit negotiation starts to advance and there are no signs of risks yet. Hence, the pound maintained its position in the support area despite the strengthening of the dollar and activities in the eurozone. The European Central Bank decided to extend the easing program which in turn, weakened the euro. Although, these things did not really affect the pound as it continues to trade close to the area of 1.32.
There are some strong purchasing in this area, as well as at the level of 1.30. Once this is achieved, the lead will be in the hands of the bulls which is likely to be maintained in short term. It seems that there is also no major event to affect the movements and we can say that the price is in consolidation and persists to be within the range for the day.
The British pound was able to dodge the immediate impact of the rise of the dollar while the euro dropped by two significant points that dominate the market in the previous week. The dollar gained from the rate hike which started by the Fed and the positive outlook of the Fed in the economy.
The hawkish sentiments gave t chance to the dollar to rise and the dollar bulls to plan ahead with two more rate hikes to look forward to. The Fed gives similar signals which still yet to be seen if they would continue the process and they would implement this in a specific period of time later on. We have witnessed that the rate hike would have minimal impact on the market, especially on the pound.
It seems that everything is going smoothly in the UK as the Brexit negotiation starts to advance and there are no signs of risks yet. Hence, the pound maintained its position in the support area despite the strengthening of the dollar and activities in the eurozone. The European Central Bank decided to extend the easing program which in turn, weakened the euro. Although, these things did not really affect the pound as it continues to trade close to the area of 1.32.
There are some strong purchasing in this area, as well as at the level of 1.30. Once this is achieved, the lead will be in the hands of the bulls which is likely to be maintained in short term. It seems that there is also no major event to affect the movements and we can say that the price is in consolidation and persists to be within the range for the day.
GBP/USD Fundamental Analysis: June 11, 2018
The pound/dollar pair continued to trade around the 1.3430 region on the back of the failure to create bullish momentum in the previous week, as it was beaten by the major handle and the markets are waiting for further progress in Brexit this week. Due to the scheduled FOMC rate hike in the upcoming week, the interest rate differential of the GBP and the USD is predicted to move in different directions which could hold the Pound on its starting position and push the British currency into the recent lows. Following the recently rejected Irish border solution, market participants await for further news within this week while the United Kingdom continue to negotiate in looking for the middle ground for the hard-line Brexiteers and the EU leadership in Brussels. Nevertheless, Prime Minister Theresa May was caught in between and trying to find fair solutions for both sides.
The upcoming week is projected to be really busy for the Sterling pound since 4 out of 5 trading session this week brought extreme impact to the UK calendar that could support a high level of volatility for market players. Today has plenty of data for Britain which will be all published at 08:30 GMT, however, the focus will be on the Manufacturing Industrial Production data which is expected to remain unchanged at 2.9%. The US session today appears to be in smooth sailing according to the economic calendar, but traders might deal with the G7 summit blowout, wherein US President Donald Trump leave the summit earlier and depart the US’ support of the G7 communiqué, following a Tweet from POTUS aboard Air Force One heads to Singapore for the Trump-Kim summit.
At the same time, the figures for Average Earnings Index +Bonus (Apr), Claimant Count Change (May), Core CPI & PPI input and Core retail sales in the next three consecutive trading sessions. Moreover, the daily chart indicates that the GBP/USD currency pair corrected higher from the lows of 1.3205 alongside the diverging technical oscillators. On the other hand, the Relative Strength Index (RSI) had an unexpected move towards the oversold area and bounced back to the GBP, which descends to the levels of the beginning of last week. The Slow Stochastic resumed moving in an upward trajectory. The daily chart of the 50-day and 100-day moving average formed a death star crossover, this means that there is an initial downside potential of the Cable pair to break the 1.3300 region prior attacking the area of 1.3200. The upside of the pair is necessary to break back above the 1.3380 to the 1.3450 target, which is the last week’s high.
The pound/dollar pair continued to trade around the 1.3430 region on the back of the failure to create bullish momentum in the previous week, as it was beaten by the major handle and the markets are waiting for further progress in Brexit this week. Due to the scheduled FOMC rate hike in the upcoming week, the interest rate differential of the GBP and the USD is predicted to move in different directions which could hold the Pound on its starting position and push the British currency into the recent lows. Following the recently rejected Irish border solution, market participants await for further news within this week while the United Kingdom continue to negotiate in looking for the middle ground for the hard-line Brexiteers and the EU leadership in Brussels. Nevertheless, Prime Minister Theresa May was caught in between and trying to find fair solutions for both sides.
The upcoming week is projected to be really busy for the Sterling pound since 4 out of 5 trading session this week brought extreme impact to the UK calendar that could support a high level of volatility for market players. Today has plenty of data for Britain which will be all published at 08:30 GMT, however, the focus will be on the Manufacturing Industrial Production data which is expected to remain unchanged at 2.9%. The US session today appears to be in smooth sailing according to the economic calendar, but traders might deal with the G7 summit blowout, wherein US President Donald Trump leave the summit earlier and depart the US’ support of the G7 communiqué, following a Tweet from POTUS aboard Air Force One heads to Singapore for the Trump-Kim summit.
At the same time, the figures for Average Earnings Index +Bonus (Apr), Claimant Count Change (May), Core CPI & PPI input and Core retail sales in the next three consecutive trading sessions. Moreover, the daily chart indicates that the GBP/USD currency pair corrected higher from the lows of 1.3205 alongside the diverging technical oscillators. On the other hand, the Relative Strength Index (RSI) had an unexpected move towards the oversold area and bounced back to the GBP, which descends to the levels of the beginning of last week. The Slow Stochastic resumed moving in an upward trajectory. The daily chart of the 50-day and 100-day moving average formed a death star crossover, this means that there is an initial downside potential of the Cable pair to break the 1.3300 region prior attacking the area of 1.3200. The upside of the pair is necessary to break back above the 1.3380 to the 1.3450 target, which is the last week’s high.
GBP/USD Technical Analysis: May 22, 2018
The British pound slightly declined at the beginning of the Monday session as it reached the level of 1.34 before finding buyers. Since there are still signs of support, it looks like it supported the fight for buyers. Yet, there are some major concerns above.
Trading the British major currency pair slid down towards the psychological level of 1.34 before going up again. It has shown a significant amount of bullish pressure but there could also be signs of significant resistance in the previous uptrend line, established in the yellow ellipse on the chart. This gives a significant amount of resistance with a high probability of a rollover then we could look for the level 1.34 below, which was also supportive in the past. A breakdown below would allow the market for a decline up to the level of 1.33 and further to 1.30.
We should be cautious of any rally, at least not until a successful breakout to 1.3550. For now, we could reverse the whole situation completely, but I think there will also be a continuation of dollar strengthening in the short-term, which is likely to extend for the rest of the summer and continue its rally in the U.S. When a breakdown occurs below the uptrend line, this could become a problem for the British pound. Although, it may not necessarily be a problem as much as the strengthening of the U.S. dollar. I would look for some type of exhaustive candle near the area of 1.3475 to begin shorting this pair.
The British pound slightly declined at the beginning of the Monday session as it reached the level of 1.34 before finding buyers. Since there are still signs of support, it looks like it supported the fight for buyers. Yet, there are some major concerns above.
Trading the British major currency pair slid down towards the psychological level of 1.34 before going up again. It has shown a significant amount of bullish pressure but there could also be signs of significant resistance in the previous uptrend line, established in the yellow ellipse on the chart. This gives a significant amount of resistance with a high probability of a rollover then we could look for the level 1.34 below, which was also supportive in the past. A breakdown below would allow the market for a decline up to the level of 1.33 and further to 1.30.
We should be cautious of any rally, at least not until a successful breakout to 1.3550. For now, we could reverse the whole situation completely, but I think there will also be a continuation of dollar strengthening in the short-term, which is likely to extend for the rest of the summer and continue its rally in the U.S. When a breakdown occurs below the uptrend line, this could become a problem for the British pound. Although, it may not necessarily be a problem as much as the strengthening of the U.S. dollar. I would look for some type of exhaustive candle near the area of 1.3475 to begin shorting this pair.
USD/CAD Technical Analysis: May 15, 2018
The week began for the US dollar against the Canadian dollar in testing the psychological level of 1.2750 for support. The market will probably stay in this area and bounce more than once.
During the Monday trading session, the greenback slid lower and reaches the level of 1.2750. If the pair breaks down again below the 1.27 level, the price could further go down towards 1.25. Alternately, if the price breaks above the level of 1.28 instead, the next course will be towards 1.30. Noise will still be present in the market around the said level with a lot of variable factors to affect the trades. The U.S. is likely to pick up momentum due to higher interest rates again in the previous weeks but it was not favorable for the greenback yesterday.
The oil is starting to rally again but could add more pressure on the market. We should focus on the 10-year treasury note in the United States and if the interest rates drop as well, this is a bad sign that would propel the market lower. There is a lot happening for the Canadian dollar yet above the level of 1.30 offers a lot of resistance, which is very apparent on the trend, with a lot of noise for a while now. In case that the market breaks through above 1.30 for some time, the price will continue to climb higher. Otherwise, we should anticipate a lot of noise for the bank and a technician to rise higher for a bit.
The week began for the US dollar against the Canadian dollar in testing the psychological level of 1.2750 for support. The market will probably stay in this area and bounce more than once.
During the Monday trading session, the greenback slid lower and reaches the level of 1.2750. If the pair breaks down again below the 1.27 level, the price could further go down towards 1.25. Alternately, if the price breaks above the level of 1.28 instead, the next course will be towards 1.30. Noise will still be present in the market around the said level with a lot of variable factors to affect the trades. The U.S. is likely to pick up momentum due to higher interest rates again in the previous weeks but it was not favorable for the greenback yesterday.
The oil is starting to rally again but could add more pressure on the market. We should focus on the 10-year treasury note in the United States and if the interest rates drop as well, this is a bad sign that would propel the market lower. There is a lot happening for the Canadian dollar yet above the level of 1.30 offers a lot of resistance, which is very apparent on the trend, with a lot of noise for a while now. In case that the market breaks through above 1.30 for some time, the price will continue to climb higher. Otherwise, we should anticipate a lot of noise for the bank and a technician to rise higher for a bit.
GBP/USD Technical Analysis: May 9, 2018
The British pound declined almost throughout the Tuesday session in order to test the major uptrend line once again. The 1.35 level is still significant given that it is psychologically relevant. There is also a lot of buying and selling in this area previously, which, at the same time, coincides with the major upward line. Hence, in consideration of these factors, there will be a decision soon.
The British currency dropped during the Tuesday session in reaching the uptrend line at 1.35 level. Essentially, a breakdown below could push the price further towards 1.33. Ultimately, a breakdown could loosen up sharply since the uptrend line is important. The level of 1.30 if a significant level as much as the 1.35 handle. I presume that a breakdown is logical since the U.S. dollar continues to strengthen in the summer season.
The European Central Bank has already announced that interest rates will be maintained a bit lower for a period of time that previously considered, which, in turn, added pressure on Sterling. Although this might be just for short-term and in the next few months, it is likely for buyers to return in this currency. However, the U.S. dollar will probably grow in the upcoming months which would greatly affect the currencies relative to the bond market and of course interest rate expectations. Alternately, if a breakout occurs at 1.3650 level, then there is a chance for a kick in upward momentum.
The British pound declined almost throughout the Tuesday session in order to test the major uptrend line once again. The 1.35 level is still significant given that it is psychologically relevant. There is also a lot of buying and selling in this area previously, which, at the same time, coincides with the major upward line. Hence, in consideration of these factors, there will be a decision soon.
The British currency dropped during the Tuesday session in reaching the uptrend line at 1.35 level. Essentially, a breakdown below could push the price further towards 1.33. Ultimately, a breakdown could loosen up sharply since the uptrend line is important. The level of 1.30 if a significant level as much as the 1.35 handle. I presume that a breakdown is logical since the U.S. dollar continues to strengthen in the summer season.
The European Central Bank has already announced that interest rates will be maintained a bit lower for a period of time that previously considered, which, in turn, added pressure on Sterling. Although this might be just for short-term and in the next few months, it is likely for buyers to return in this currency. However, the U.S. dollar will probably grow in the upcoming months which would greatly affect the currencies relative to the bond market and of course interest rate expectations. Alternately, if a breakout occurs at 1.3650 level, then there is a chance for a kick in upward momentum.
USD/JPY Technical Analysis: May 7, 2018
Investors are observing the movement of the 10-year U.S. Treasury note futures contract following the appreciation of the USD/JPY pair. The statements and the recent jobs report influencing the 10-year Treasury notes, which is likely to be bullish especially that it is in inverse relationship to the interest rates. An increase in the T-notes would then lead to a drop in yields. A weaker Treasury yield would bring pressure to the Japanese major pair.
The USD/JPY pair began the week with higher expectations of the interest rates prior to the latest Fed monetary policy statement yet, the price movements suggests the disappointment to the reports. The pair rallied for the week to the highest level at 110.028 since February 5. However, the pair withdrew by -0.12% or 0.127 and closed the week lower at 109.060.
On May 2, the funds' rate sustained the target of 1.5 percent to 1.75 percent according to the Federal Open Market Committee, which is already anticipated. They say that the overall inflation excluding food and energy is close to the two percent. The economy has improved as the business fixed investment grew more steadfast.
Unanimously, the committee has decided to keep the rates unchanged disregarding the expectation of public for an aggressive course of action. Various officials are scheduled to have their speech in the upcoming days.
Fed has not given any signals to the pace of future hikes which investors believe to be implemented twice with the next rate hike anticipated in June. Subsequent rate hikes will probably be around after four months or on the last month of the year.
As they aim to hold the rate hikes twice with the not-so-good U.S. Non-Farm Payrolls report on Friday. The headline resulted below expectations as the unemployment rate reached an 18-year low. The average hourly earning seems to have the inflation out of control.
Selling pressure would persist to control the USD/JPY pair this week with investors continue to book profits after the Fed announcement on Wednesday, as well as, the U.S. jobs report on Friday.
The sentiment of the Federal Reserve was relatively dovish while allowing the inflation to purse the two percent target. Moreover, the wage growth did not meet expectations on the employment report released on Friday.
Besides the bullish trend of the 10-year Treasury notes futures contract which inversely affects the drop of yields, traders were able to place money on the net short position of the 10-year futures, with over 1 million shorts, according to the Commodity Futures Trading Commission.
However, the USD/JPY could decline sharply if these shorts start to cover.
Based on the latest reports, the inflation will be the main focus due to the anticipated release on the Producer s on Wednesday and Consumer Price on Thursday.
Some speakers including the Fed Chair Jerome Powell will have an assembly on Wednesday at 19.15 GMT.
Investors are observing the movement of the 10-year U.S. Treasury note futures contract following the appreciation of the USD/JPY pair. The statements and the recent jobs report influencing the 10-year Treasury notes, which is likely to be bullish especially that it is in inverse relationship to the interest rates. An increase in the T-notes would then lead to a drop in yields. A weaker Treasury yield would bring pressure to the Japanese major pair.
The USD/JPY pair began the week with higher expectations of the interest rates prior to the latest Fed monetary policy statement yet, the price movements suggests the disappointment to the reports. The pair rallied for the week to the highest level at 110.028 since February 5. However, the pair withdrew by -0.12% or 0.127 and closed the week lower at 109.060.
On May 2, the funds' rate sustained the target of 1.5 percent to 1.75 percent according to the Federal Open Market Committee, which is already anticipated. They say that the overall inflation excluding food and energy is close to the two percent. The economy has improved as the business fixed investment grew more steadfast.
Unanimously, the committee has decided to keep the rates unchanged disregarding the expectation of public for an aggressive course of action. Various officials are scheduled to have their speech in the upcoming days.
Fed has not given any signals to the pace of future hikes which investors believe to be implemented twice with the next rate hike anticipated in June. Subsequent rate hikes will probably be around after four months or on the last month of the year.
As they aim to hold the rate hikes twice with the not-so-good U.S. Non-Farm Payrolls report on Friday. The headline resulted below expectations as the unemployment rate reached an 18-year low. The average hourly earning seems to have the inflation out of control.
Selling pressure would persist to control the USD/JPY pair this week with investors continue to book profits after the Fed announcement on Wednesday, as well as, the U.S. jobs report on Friday.
The sentiment of the Federal Reserve was relatively dovish while allowing the inflation to purse the two percent target. Moreover, the wage growth did not meet expectations on the employment report released on Friday.
Besides the bullish trend of the 10-year Treasury notes futures contract which inversely affects the drop of yields, traders were able to place money on the net short position of the 10-year futures, with over 1 million shorts, according to the Commodity Futures Trading Commission.
However, the USD/JPY could decline sharply if these shorts start to cover.
Based on the latest reports, the inflation will be the main focus due to the anticipated release on the Producer s on Wednesday and Consumer Price on Thursday.
Some speakers including the Fed Chair Jerome Powell will have an assembly on Wednesday at 19.15 GMT.
EUR/USD Fundamental Analysis: April 16, 2018
Missile launch directed to the specific target in Syria from the U.S. and their allies although the effect is not that big impact. Last week, there are topics regarding the possibility of a war between the U.S. and Syria. The situation is worsening that resulted in choppiness in the market.
A lot of investors has become anxious because of choppiness and the market has become more appealing. Hence, the trend was seen to have consolidated and trades in a range. The attacks over the weekend were said to be from the United States. On a lighter note, this is just for short-term which happened one time that cooled down concerns about a war. This has largely calmed down the market that is reflected in the market in the present condition.
Euro has been trading in a range for a number of weeks already and the tendency to break out in any direction is not clearly visible at this time. Although, there are breakout attempts on either side but did not come out with anything due to uncertainties caused by various factors including the area of Syria, the trade war between China and the U.S. as well as, the QE program.
For today, the retail sales data from the U.S. is unexpected to be released today as the first day of the week. Nonetheless, there is a slow data for today. Excluding the geopolitics concern, this data is anticipated to be more appealing that could initiate the trend for short-term.
Missile launch directed to the specific target in Syria from the U.S. and their allies although the effect is not that big impact. Last week, there are topics regarding the possibility of a war between the U.S. and Syria. The situation is worsening that resulted in choppiness in the market.
A lot of investors has become anxious because of choppiness and the market has become more appealing. Hence, the trend was seen to have consolidated and trades in a range. The attacks over the weekend were said to be from the United States. On a lighter note, this is just for short-term which happened one time that cooled down concerns about a war. This has largely calmed down the market that is reflected in the market in the present condition.
Euro has been trading in a range for a number of weeks already and the tendency to break out in any direction is not clearly visible at this time. Although, there are breakout attempts on either side but did not come out with anything due to uncertainties caused by various factors including the area of Syria, the trade war between China and the U.S. as well as, the QE program.
For today, the retail sales data from the U.S. is unexpected to be released today as the first day of the week. Nonetheless, there is a slow data for today. Excluding the geopolitics concern, this data is anticipated to be more appealing that could initiate the trend for short-term.
GBP/USD Fundamental Analysis: April 2, 2018
The GBP/USD pair continued trading around the 1.40 support zone which is expected to be the battleground between the bears and the bulls in the near term. However, it is difficult to make a conclusion since today is a holiday in many countries in celebrating the Easter Sunday. Hence, liquidity and volatility are predicted to be extremely low.
The Cable managed to move over the 1.42 level in the past few weeks amid the dollar weakening and also because the BOE’s hawkishness which continues to become a stronger economy as the Brexit process become smoother. The process resumed a slow, steady and continuous manner and it would take less than a year prior to the completion of the process.
So far, the British economy supported for such improvement as the process continue to smoothen and the UK had a positive performance which helped the Bank of England to conduct a rate increase during this period.
The resumption of a stable economy is beneficial for the central bank to consider further rate hikes ahead and this helped the BOE to maintain a hawkish stance. These events pushed the pair near its highs in the short-term range but it met a lot of selling as the American currency strengthen. As a result, the GBPUSD pair hovered around the significant level of 1.40. In case that the support was broken, the bears will have an opportunity to dominate again the market.
Ultimately, there is no major news from the UK or the US since its holiday in most parts of the world which indicates that the volatility and liquidity would be low for that day.
The GBP/USD pair continued trading around the 1.40 support zone which is expected to be the battleground between the bears and the bulls in the near term. However, it is difficult to make a conclusion since today is a holiday in many countries in celebrating the Easter Sunday. Hence, liquidity and volatility are predicted to be extremely low.
The Cable managed to move over the 1.42 level in the past few weeks amid the dollar weakening and also because the BOE’s hawkishness which continues to become a stronger economy as the Brexit process become smoother. The process resumed a slow, steady and continuous manner and it would take less than a year prior to the completion of the process.
So far, the British economy supported for such improvement as the process continue to smoothen and the UK had a positive performance which helped the Bank of England to conduct a rate increase during this period.
The resumption of a stable economy is beneficial for the central bank to consider further rate hikes ahead and this helped the BOE to maintain a hawkish stance. These events pushed the pair near its highs in the short-term range but it met a lot of selling as the American currency strengthen. As a result, the GBPUSD pair hovered around the significant level of 1.40. In case that the support was broken, the bears will have an opportunity to dominate again the market.
Ultimately, there is no major news from the UK or the US since its holiday in most parts of the world which indicates that the volatility and liquidity would be low for that day.
USD/CAD Technical Analysis: March 26, 2018
The American currency plummeted against its Canadian counterpart during the previous trading session and began to move near the 1.31 handle and break the 1.30 region. The oil markets performed pretty well which make sense. It seems that the market will find further reasons to chop around the 1.28 zone, which appears to offer support.
The cluster seen in this region served as the current support but this indicates a negative note as the “two-week shooting star” pattern was formed after a complete round trip. Alternately, an ability to break above these 2 candles would likely show a bullish sign but the USD/CAD is preparing to move back and forth amid concerns on trade war breakout.
It seems that the short-term traders will prevail over the market next week with the 1.28 region as the floor and 1.31 would act as the ceiling. Hence, the situation might be very choppy and tough, however, breaking on top of the 2 candle will clear the way through the 1.35 handle. Market players should observe the WTI Crude Oil and a gap over $70 is enough to break the market downwards.
The American currency plummeted against its Canadian counterpart during the previous trading session and began to move near the 1.31 handle and break the 1.30 region. The oil markets performed pretty well which make sense. It seems that the market will find further reasons to chop around the 1.28 zone, which appears to offer support.
The cluster seen in this region served as the current support but this indicates a negative note as the “two-week shooting star” pattern was formed after a complete round trip. Alternately, an ability to break above these 2 candles would likely show a bullish sign but the USD/CAD is preparing to move back and forth amid concerns on trade war breakout.
It seems that the short-term traders will prevail over the market next week with the 1.28 region as the floor and 1.31 would act as the ceiling. Hence, the situation might be very choppy and tough, however, breaking on top of the 2 candle will clear the way through the 1.35 handle. Market players should observe the WTI Crude Oil and a gap over $70 is enough to break the market downwards.
GBP/USD Fundamental Analysis: March 21, 2018
The British pound against the U.S. dollar had a downward correction due to the pressure from the dollar which has been strengthening across markets yesterday. The pair positions just over the area of 1.40 and there seems to be no threat for the bulls but it is still uncertain who will lead the trend.
There will be high volatility in the market with the expectation of the FOMC rate announcement which would then be followed by a press conference. It is highly anticipated that the Fed will raise their rates for the first time, which is highly possible. However, we cannot be certain if the market expectations of a hawkish decision would be met, which the market bulls area also hoping for.
However, if the greenback weakens, this would come about just for a short period with the incoming data to dominate the market and boost the dollar. For tomorrow, we have the BOE meeting to look forward to but it is yet to be known if this will have a hawkish tone, in consideration of the Brexit talks in the past few weeks. If this happens, traders should expect for volatility.
Considering all this, traders are suggested not to presume any outcome or direction and trade deciding on the how the situation presents. It is best to wait for the markets to settle down then decide later on when the market has stabilized. For today, the FOMC meeting will be the center of attention that could result in consolidation in the market.
The British pound against the U.S. dollar had a downward correction due to the pressure from the dollar which has been strengthening across markets yesterday. The pair positions just over the area of 1.40 and there seems to be no threat for the bulls but it is still uncertain who will lead the trend.
There will be high volatility in the market with the expectation of the FOMC rate announcement which would then be followed by a press conference. It is highly anticipated that the Fed will raise their rates for the first time, which is highly possible. However, we cannot be certain if the market expectations of a hawkish decision would be met, which the market bulls area also hoping for.
However, if the greenback weakens, this would come about just for a short period with the incoming data to dominate the market and boost the dollar. For tomorrow, we have the BOE meeting to look forward to but it is yet to be known if this will have a hawkish tone, in consideration of the Brexit talks in the past few weeks. If this happens, traders should expect for volatility.
Considering all this, traders are suggested not to presume any outcome or direction and trade deciding on the how the situation presents. It is best to wait for the markets to settle down then decide later on when the market has stabilized. For today, the FOMC meeting will be the center of attention that could result in consolidation in the market.
EUR/GBP Technical Analysis: March 19, 2018
The EUR/GBP pair has plenty of noise during the trading course last week. However, the current position is in the significant consolidation zone. The level below the 0.87 is the “floor” of the market and the area above 0.90 is the “ceiling”. The pair seems appealing to short-term traders but there could be an ascending trend in general. We are waiting for the results of the talks between the United Kingdom and the European Union, upon the clarity of this, the EURGBP will strive to conduct significant moves.
Despite of this, the market may still offer significant opportunities but the longer-term trader will continue to struggle and possibly hold the range that provides benefits in trading despite any fluctuations. An ability to break down under the 0.87 handle will push the market to the 0.85 eventually. Otherwise, a cut through on top of the 0.90 region would give rise to a “buy-and-hold” scenario. The level above 0.93 handle is the most recent high. As of this writing, there are no break out expected in the next few weeks and would lead to a range bound short-term market.
The EUR/GBP pair has plenty of noise during the trading course last week. However, the current position is in the significant consolidation zone. The level below the 0.87 is the “floor” of the market and the area above 0.90 is the “ceiling”. The pair seems appealing to short-term traders but there could be an ascending trend in general. We are waiting for the results of the talks between the United Kingdom and the European Union, upon the clarity of this, the EURGBP will strive to conduct significant moves.
Despite of this, the market may still offer significant opportunities but the longer-term trader will continue to struggle and possibly hold the range that provides benefits in trading despite any fluctuations. An ability to break down under the 0.87 handle will push the market to the 0.85 eventually. Otherwise, a cut through on top of the 0.90 region would give rise to a “buy-and-hold” scenario. The level above 0.93 handle is the most recent high. As of this writing, there are no break out expected in the next few weeks and would lead to a range bound short-term market.
GBP/USD Fundamental Analysis: March 7, 2018
The British pound resumes its uptrend amid the weakened dollar across all market in the past 24 hours. Although the increase was not as high as it can be, it was able to move steadily which has assisted the British currency to recover from its lows and have a steady uptrend over the past few days. These gave the investors more confidence during the said period of time.
Meanwhile, the sterling pound has been moving steadily and further boosted by the lack of economic data. The ongoing Brexit negotiation following the set plan also supports the pound. Euro leaders have been busy with their domestic concerns and at the same time, rumors and commentaries about them have also lessened At the same time, the Brexit negotiation has assisted the dollar to move steadily.
The dollar got behind against other currencies following the resignation of Trump’s economic advisor, John Cohn, which is not favorable for the president and his team as they have had some difficulties in handling situation in the past few months. On the other hand, this is advantageous for the dollar as the overall market which is the reason for the dollar’s decline during this period of time.
The market is getting ready for the slew of data in the upcoming days with a new month has begun. The ADP employment report expected to be released today will hint at the results of another incoming data of Friday. If the data came out weakly, this would further push the GBP/USD pair towards the area of 1.40.
The British pound resumes its uptrend amid the weakened dollar across all market in the past 24 hours. Although the increase was not as high as it can be, it was able to move steadily which has assisted the British currency to recover from its lows and have a steady uptrend over the past few days. These gave the investors more confidence during the said period of time.
Meanwhile, the sterling pound has been moving steadily and further boosted by the lack of economic data. The ongoing Brexit negotiation following the set plan also supports the pound. Euro leaders have been busy with their domestic concerns and at the same time, rumors and commentaries about them have also lessened At the same time, the Brexit negotiation has assisted the dollar to move steadily.
The dollar got behind against other currencies following the resignation of Trump’s economic advisor, John Cohn, which is not favorable for the president and his team as they have had some difficulties in handling situation in the past few months. On the other hand, this is advantageous for the dollar as the overall market which is the reason for the dollar’s decline during this period of time.
The market is getting ready for the slew of data in the upcoming days with a new month has begun. The ADP employment report expected to be released today will hint at the results of another incoming data of Friday. If the data came out weakly, this would further push the GBP/USD pair towards the area of 1.40.
EUR/USD Fundamental Analysis: March 6, 2018
The EUR/USD pair constantly trading in a strong manner as it moves away from the election results in Italy. The focus remains to be on the dollar weakening felt across the markets. It is somewhat surprising for those who expected that the Italian election will bring an impact towards the euro area but the results of further led concerns of the EU leaders.
Italy is the third biggest economy in the European region and the election results indicate the increasing anti-establishment votes. This event is common from all over the countries especially from the United States to Asia. Hence, this should be one of the main concerns of the Euro officials since this kind of trend may grow continually which could hurt the euro and its existence in the following years. However, this does not necessarily mean that the euro is free from any burden while traders appear to be happy about the maintained current situation. This the reason behind the move of the euro/dollar pair through the 1.2350 level as of this writing
Ultimately, there are no important economic news or data from the EU or the US for this day but this reflects some ranging and consolidation in the near-term. Also, the markets anticipate further set of data in the second half of the week from the United States, indicating a short-term trend for the greenbacks.
The EUR/USD pair constantly trading in a strong manner as it moves away from the election results in Italy. The focus remains to be on the dollar weakening felt across the markets. It is somewhat surprising for those who expected that the Italian election will bring an impact towards the euro area but the results of further led concerns of the EU leaders.
Italy is the third biggest economy in the European region and the election results indicate the increasing anti-establishment votes. This event is common from all over the countries especially from the United States to Asia. Hence, this should be one of the main concerns of the Euro officials since this kind of trend may grow continually which could hurt the euro and its existence in the following years. However, this does not necessarily mean that the euro is free from any burden while traders appear to be happy about the maintained current situation. This the reason behind the move of the euro/dollar pair through the 1.2350 level as of this writing
Ultimately, there are no important economic news or data from the EU or the US for this day but this reflects some ranging and consolidation in the near-term. Also, the markets anticipate further set of data in the second half of the week from the United States, indicating a short-term trend for the greenbacks.
It has been possible that the market will buy short-term dip to raise a larger position, since there has been a breakout over the consolidation over the last few years which could raise prices towards the 1.25 level. Long-term trade will support the sale of euro and US dollars. However, if the breakdown is less than the 1.17 level, the whole situation will have to wait and it would be best to consider it.
USD/JPY Technical Analysis: March 2, 2018
The U.S. dollar retreated in the beginning during the Thursday trading session and reach the level of 106.50 prior its rebound to the level of 107. Overall, the price level of 107.50 will probably be attained then move towards the area of 108. There is also the presence of noise but the 106.50 level is also giving off support. Presence of buyers will be felt for some time, especially when the stock market gained its momentum once again. The market would then reach the area of 110 towards the level of 114.
A massive support was seen close to the area of 105, which has been psychologically significant and structurally previously. Hence, a breakdown below would not be a good thing for the pair and confirms the decline to the level of 100.
In long-term, the market would further climb higher especially if the rise in interest rates would continue amid the differential interest rate of ten-year notes between both countries and propel towards its next move, although, this would be good for a long-term goal. The market will probably proceed with noise but there are also opportunities to pullbacks that some would take advantage immediately.
The U.S. dollar retreated in the beginning during the Thursday trading session and reach the level of 106.50 prior its rebound to the level of 107. Overall, the price level of 107.50 will probably be attained then move towards the area of 108. There is also the presence of noise but the 106.50 level is also giving off support. Presence of buyers will be felt for some time, especially when the stock market gained its momentum once again. The market would then reach the area of 110 towards the level of 114.
A massive support was seen close to the area of 105, which has been psychologically significant and structurally previously. Hence, a breakdown below would not be a good thing for the pair and confirms the decline to the level of 100.
In long-term, the market would further climb higher especially if the rise in interest rates would continue amid the differential interest rate of ten-year notes between both countries and propel towards its next move, although, this would be good for a long-term goal. The market will probably proceed with noise but there are also opportunities to pullbacks that some would take advantage immediately.
EUR/USD Fundamental Analysis: February 27, 2018
The euro against the U.S. dollar has been trading closely on either side at the level of 1.23 as the market presumes the pair to move further.
The EUR/USD pair is moving within a tight range in the past 24 hours which is already anticipated in Monday trading session. Low volatility is not surprising in the current market condition. Traders are likely to position themselves for this week on Mondays which causes low volatility.
Similarly, trading remained the same despite the speech of ECB President Draghi yesterday. The speech met the expectations with him saying positively on the growth of the economy in the eurozone. He is recognized to be dovish but the fact remains of the steady growth of the economy as reflected in the incoming data and remains positive in the past few months. This has preserved the euro to keep afloat in the past 24 hours although the movements have been very minimal.
The market is also anticipated to gain volatility and liquidity as the end of the month is approaching. At the same time, price fluctuations to be inundated by trade positioning and monthly end flow. Options are also about to expire in the upcoming days, which will keep the market busy on particular price range.
The market will probably focus on the dollar with the new Fed chief, Jerome Powell, to testify and engage the market waiting for signals on monetary policies and future rate hikes in the next few months. As for the economic data, both the durable goods data and the trade balance data from the U.S. will be published and if it did not meet expectations, the dollar is likely to roll downward.
The euro against the U.S. dollar has been trading closely on either side at the level of 1.23 as the market presumes the pair to move further.
The EUR/USD pair is moving within a tight range in the past 24 hours which is already anticipated in Monday trading session. Low volatility is not surprising in the current market condition. Traders are likely to position themselves for this week on Mondays which causes low volatility.
Similarly, trading remained the same despite the speech of ECB President Draghi yesterday. The speech met the expectations with him saying positively on the growth of the economy in the eurozone. He is recognized to be dovish but the fact remains of the steady growth of the economy as reflected in the incoming data and remains positive in the past few months. This has preserved the euro to keep afloat in the past 24 hours although the movements have been very minimal.
The market is also anticipated to gain volatility and liquidity as the end of the month is approaching. At the same time, price fluctuations to be inundated by trade positioning and monthly end flow. Options are also about to expire in the upcoming days, which will keep the market busy on particular price range.
The market will probably focus on the dollar with the new Fed chief, Jerome Powell, to testify and engage the market waiting for signals on monetary policies and future rate hikes in the next few months. As for the economic data, both the durable goods data and the trade balance data from the U.S. will be published and if it did not meet expectations, the dollar is likely to roll downward.
EUR/GBP Technical Analysis: February 26, 2018
The euro against the British pound broke lower than the Friday trading session and reach lower than the level of 0.88. There is a massive support around the area with a lot of noise in the long-term.
The presence of noise will most likely persist with the headlines as the result of negotiations between Brussels and London which is likely to influence the pair. At the same time, traders should anticipate for volatility. Looking at the weekly chart, the pair ranges 300-pips and it will remain for some time until there is a definite proposition for the negotiation. The market should anticipate for this to continue in a while.
Traders could utilize in accordance to the stochastic oscillator as they will be trading back and forth in short-term. There is also a probability for negativity with the level of 0.87 in the floor below. The closer this level can be reached, it is wise to buy in this market and will be the focus on this move. Traders could sell at some point and volatility is likely to persist unless it turns around higher than the level of 0.8840. Hereinafter, buying is possible and continues to be volatile. However, if you are not strong enough and focus on the consolidation of the area and a lot of opportunities to gain profit in a well-defined rectangle.
The euro against the British pound broke lower than the Friday trading session and reach lower than the level of 0.88. There is a massive support around the area with a lot of noise in the long-term.
The presence of noise will most likely persist with the headlines as the result of negotiations between Brussels and London which is likely to influence the pair. At the same time, traders should anticipate for volatility. Looking at the weekly chart, the pair ranges 300-pips and it will remain for some time until there is a definite proposition for the negotiation. The market should anticipate for this to continue in a while.
Traders could utilize in accordance to the stochastic oscillator as they will be trading back and forth in short-term. There is also a probability for negativity with the level of 0.87 in the floor below. The closer this level can be reached, it is wise to buy in this market and will be the focus on this move. Traders could sell at some point and volatility is likely to persist unless it turns around higher than the level of 0.8840. Hereinafter, buying is possible and continues to be volatile. However, if you are not strong enough and focus on the consolidation of the area and a lot of opportunities to gain profit in a well-defined rectangle.
EUR/GBP Technical Analysis: February 21, 2018
The single European currency paired with British pound had broken down during the course of Tuesday’s session. The EUR/GBP pair moved lower near the 0.88 mark which is a previous support and resistance. Hence, it should be expected that the market will have plenty of noise around that level.
Generally, the market will be noisy due to potential headline risk brought by the euro/pound pair in line with the negotiations of the European Union and the United Kingdom. Therefore, this problem might continue until the next couple of months that make trading tough over a long period of time.
Breaking down under the 0.88 region will allow the market to touch the 0.8740 zone. Otherwise, a rally from that point will push the market above the 0.8860 level or even to 0.90 eventually. This type of market requires players to take profits hurriedly for it’s nearly impossible to hover a trade in the longer-term, except when one is able to deal with wild swings for both profit and loss. Nevertheless, the general upward trend will resume since participants favor the EU stability against the uncertain future of the UK. It is possible to move on top of the 0.93 area.
The single European currency paired with British pound had broken down during the course of Tuesday’s session. The EUR/GBP pair moved lower near the 0.88 mark which is a previous support and resistance. Hence, it should be expected that the market will have plenty of noise around that level.
Generally, the market will be noisy due to potential headline risk brought by the euro/pound pair in line with the negotiations of the European Union and the United Kingdom. Therefore, this problem might continue until the next couple of months that make trading tough over a long period of time.
Breaking down under the 0.88 region will allow the market to touch the 0.8740 zone. Otherwise, a rally from that point will push the market above the 0.8860 level or even to 0.90 eventually. This type of market requires players to take profits hurriedly for it’s nearly impossible to hover a trade in the longer-term, except when one is able to deal with wild swings for both profit and loss. Nevertheless, the general upward trend will resume since participants favor the EU stability against the uncertain future of the UK. It is possible to move on top of the 0.93 area.
GBP/USD Fundamental Analysis: February 19, 2018
The single European currency and the British pound shared the same fate on Friday, as it showed high volatility during the first half of the day due to the weakening of the US dollar. While in the afternoon, the strength of the American currency prevailed which helped regain the profits of the sterling of the past few days. It further helped the GBP/USD pair to end the weak in a sluggish approach which indicates correction in the following days.
The pound was secured because of the dollar instability and pushed the Cable pair to reach the 1.38 zone until the psychologically important level of 1.40. Briefly, the pair moved away from any danger for good and the pound bulls attempt to stabilize the momentum in continuing the upward movement in the near term.
As the decline of the dollar does not have enough economic data or fundamentals to support it, the rebound in the US currency did the same. This resulted in the downturn of the pound, pushing through the 1.41 mark and traded underneath the 1.40 area for a short period of time. Subsequently, the pair successfully closed the week above the 1.40 level. As of this writing, the Cable pair continued trading on top of that region and the price level is expected to remain on that point, relative to the bulls and bears. In case the pair remained steady above 1.40, the bulls will take control which would likely to be seen in the coming weeks.
Ultimately, there is no major news from the United Kingdom while there is a bank holiday in the United States today. It is safe to say that consolidation and ranging are possible while market players anticipate for bigger investors to show up its intentions and start to move in a certain trend in order to tag along. It is believed that the USD will gain strength in the medium term.
The single European currency and the British pound shared the same fate on Friday, as it showed high volatility during the first half of the day due to the weakening of the US dollar. While in the afternoon, the strength of the American currency prevailed which helped regain the profits of the sterling of the past few days. It further helped the GBP/USD pair to end the weak in a sluggish approach which indicates correction in the following days.
The pound was secured because of the dollar instability and pushed the Cable pair to reach the 1.38 zone until the psychologically important level of 1.40. Briefly, the pair moved away from any danger for good and the pound bulls attempt to stabilize the momentum in continuing the upward movement in the near term.
As the decline of the dollar does not have enough economic data or fundamentals to support it, the rebound in the US currency did the same. This resulted in the downturn of the pound, pushing through the 1.41 mark and traded underneath the 1.40 area for a short period of time. Subsequently, the pair successfully closed the week above the 1.40 level. As of this writing, the Cable pair continued trading on top of that region and the price level is expected to remain on that point, relative to the bulls and bears. In case the pair remained steady above 1.40, the bulls will take control which would likely to be seen in the coming weeks.
Ultimately, there is no major news from the United Kingdom while there is a bank holiday in the United States today. It is safe to say that consolidation and ranging are possible while market players anticipate for bigger investors to show up its intentions and start to move in a certain trend in order to tag along. It is believed that the USD will gain strength in the medium term.
USD/CAD Technical Analysis: February 12, 2018
The American dollar rallied versus other currencies around the globe, and the Loonie seems different. The USD/CAD rally due to declining prices of the oil. The Canadian dollar is commonly used by currency traders as a substitute for the oil markets which means that when the WTI Crude Oil drop, the Loonie will typically follow.
The US dollar attempts to create some stand to resume the bullish pressure, this could be done if the oil markets continue to remain weak. An unidentified employment figure will be released on Friday from Canada but failed to help things. Looking forward, the interest rates in the United States are rising which indicates a good sign for the currency. With this, the buying pressure is projected to continue, however, there is a tendency that the opposite thing may happen. We could consider this upon breaking down under the hammer formation last week. Basically, it is a breakdown beneath the 1.22 handle. In the past, there are a lot of short-term volatility in the USD/CAD which normally occur upon the intertwining of the two economies.
It should be noted that the United States and Canada are each other’s biggest trading partners which often grind each other. It can be assumed that this point can be defined as a “crucial inflection”, so it is advised to maintain a small position and add when the market establishes itself well.
The American dollar rallied versus other currencies around the globe, and the Loonie seems different. The USD/CAD rally due to declining prices of the oil. The Canadian dollar is commonly used by currency traders as a substitute for the oil markets which means that when the WTI Crude Oil drop, the Loonie will typically follow.
The US dollar attempts to create some stand to resume the bullish pressure, this could be done if the oil markets continue to remain weak. An unidentified employment figure will be released on Friday from Canada but failed to help things. Looking forward, the interest rates in the United States are rising which indicates a good sign for the currency. With this, the buying pressure is projected to continue, however, there is a tendency that the opposite thing may happen. We could consider this upon breaking down under the hammer formation last week. Basically, it is a breakdown beneath the 1.22 handle. In the past, there are a lot of short-term volatility in the USD/CAD which normally occur upon the intertwining of the two economies.
It should be noted that the United States and Canada are each other’s biggest trading partners which often grind each other. It can be assumed that this point can be defined as a “crucial inflection”, so it is advised to maintain a small position and add when the market establishes itself well.
EUR/GBP Technical Analysis: February 7, 2018
Volatility was predominant during the Tuesday trading session as the U.S. dollar dominates the market, which had an unfavorable effect on both currencies. The market shows the relative strength of the market.
It has been bullish during the Tuesday trading session as the British pound declined against the U.S. dollar. Nonetheless, the euro did not fall, as much as, the British pound. For now, the pair will be based on their relative strength but since the euro did not drop as low as the British pound, traders are anticipated to trade and push the pair higher. The market is close to the level of 0.89 which is a fair value in the consolidation area. The upward momentum implies the uptrend of the pair towards 0.90 level.
A massive resistance was seen at the area of 0.90 which has been the upper boundary in the past and it will be not easy to break this level. Although, there is a bit of noise found lower than the level of 0.8875 which proceeds to offer support in the market. I would suggest buying on the lows but it will be part by part instead of a big move. The pair will break out of the consolidation area and proceeds to move up towards the level of 0.95. Alternately, it is also possible to a have a new low which would send the market to reach the level of 0.86 based on the long-term charts.
Volatility was predominant during the Tuesday trading session as the U.S. dollar dominates the market, which had an unfavorable effect on both currencies. The market shows the relative strength of the market.
It has been bullish during the Tuesday trading session as the British pound declined against the U.S. dollar. Nonetheless, the euro did not fall, as much as, the British pound. For now, the pair will be based on their relative strength but since the euro did not drop as low as the British pound, traders are anticipated to trade and push the pair higher. The market is close to the level of 0.89 which is a fair value in the consolidation area. The upward momentum implies the uptrend of the pair towards 0.90 level.
A massive resistance was seen at the area of 0.90 which has been the upper boundary in the past and it will be not easy to break this level. Although, there is a bit of noise found lower than the level of 0.8875 which proceeds to offer support in the market. I would suggest buying on the lows but it will be part by part instead of a big move. The pair will break out of the consolidation area and proceeds to move up towards the level of 0.95. Alternately, it is also possible to a have a new low which would send the market to reach the level of 0.86 based on the long-term charts.
GBP/JPY Technical Analysis: February 5, 2018
During the Friday trading session, the market was a “risk off” move following, which resulted in a rollover in the market. The latest high implies the trend to move upward in the long-term period.
The British pound rolled over against the Japanese yen and reached the new high, but has had difficulty in the latter part of the day. It breaks higher than the level of 155, which has been a significant level that would induce buyers to return. However, there is a tendency for a volatility in the market and traders should be ready for big moves. Later on, the pair is likely to move towards the level of 160 but it will take a few days or week to reach this point. The uptrend has been really strong which is why there will not be a massive correction but more of a pullback in the market.
The next target level would be at 163 but it might take some time to reach this level, although, it might take some time to reach this level. Moreover, pullbacks would also open opportunities for purchases which makes small deals to be the ideal strategy in this situation. Other than that, this market is sene to have a lot of noise, which is referred as the “Dragon” in the forex market. Risk sensitivity is still a big deal for this pair, especially for British pound which is gaining strength. It is better to make sure for the pair to rise in value before placing bets on it, although this pair is likely to compete in the market very well.
During the Friday trading session, the market was a “risk off” move following, which resulted in a rollover in the market. The latest high implies the trend to move upward in the long-term period.
The British pound rolled over against the Japanese yen and reached the new high, but has had difficulty in the latter part of the day. It breaks higher than the level of 155, which has been a significant level that would induce buyers to return. However, there is a tendency for a volatility in the market and traders should be ready for big moves. Later on, the pair is likely to move towards the level of 160 but it will take a few days or week to reach this point. The uptrend has been really strong which is why there will not be a massive correction but more of a pullback in the market.
The next target level would be at 163 but it might take some time to reach this level, although, it might take some time to reach this level. Moreover, pullbacks would also open opportunities for purchases which makes small deals to be the ideal strategy in this situation. Other than that, this market is sene to have a lot of noise, which is referred as the “Dragon” in the forex market. Risk sensitivity is still a big deal for this pair, especially for British pound which is gaining strength. It is better to make sure for the pair to rise in value before placing bets on it, although this pair is likely to compete in the market very well.
GBP/USD Fundamental Analysis: January 31, 2018
Yesterday, it was forecasted that the British pound major pair will find it support in the level of 1.40 and it was anticipated to the line dividing the bulls and the bears. This happened as the price plunged down towards the area of 1.40 and further down for a short period of time before bouncing upward again.
Buying and the rebound of the pair were strong which resulted in an upward trend of the pair towards the area of 1.41. The trade stays beyond this level as of the moment. The volume of purchases indicates the strong presence of buyers. Nonetheless, it is essential for traders to keep in mind the end of the month is near and the prices are likely to be influenced by the month-end flows and any move at this period of time, which should be not be overlooked by traders.
Although, fundamental factors did not strongly affect the pair, as well as economically, in the past few days which is already anticipated at the end of the month is approaching. These activities are moves largely are not part of the overall trend, which indicates that money flows have a bigger impact more than everything else. Hence, it is significant to wait on the sidelines and observe as this kind of trend will persist throughout the day since today is the last day of the month.
Regarding the economic news, ADP National Employment Report from the U.S. is anticipated to be released today but none from the United Kingdom. The ADP data is considered as a prerequisite to the NFP data, which will be published on Friday. Traders should anticipate for a strong data to keep their expectations for a rate hike from the Federal Reserve at a faster rate in the succeeding months. In general, the market is hoping for three rate hike for the year but a positive outcome through high figures on reports are necessary.
Yesterday, it was forecasted that the British pound major pair will find it support in the level of 1.40 and it was anticipated to the line dividing the bulls and the bears. This happened as the price plunged down towards the area of 1.40 and further down for a short period of time before bouncing upward again.
Buying and the rebound of the pair were strong which resulted in an upward trend of the pair towards the area of 1.41. The trade stays beyond this level as of the moment. The volume of purchases indicates the strong presence of buyers. Nonetheless, it is essential for traders to keep in mind the end of the month is near and the prices are likely to be influenced by the month-end flows and any move at this period of time, which should be not be overlooked by traders.
Although, fundamental factors did not strongly affect the pair, as well as economically, in the past few days which is already anticipated at the end of the month is approaching. These activities are moves largely are not part of the overall trend, which indicates that money flows have a bigger impact more than everything else. Hence, it is significant to wait on the sidelines and observe as this kind of trend will persist throughout the day since today is the last day of the month.
Regarding the economic news, ADP National Employment Report from the U.S. is anticipated to be released today but none from the United Kingdom. The ADP data is considered as a prerequisite to the NFP data, which will be published on Friday. Traders should anticipate for a strong data to keep their expectations for a rate hike from the Federal Reserve at a faster rate in the succeeding months. In general, the market is hoping for three rate hike for the year but a positive outcome through high figures on reports are necessary.
GBP/USD Fundamental Analysis: January 29, 2018
The British pound against the U.S. dollar has been declining in the past few days as the dollar strengthens, which seems to be the focus at the present time. Following the comments of Trump, the dollar is steadfast due to the positive economic data in the U.S. This resulted in a reversal of profit for the dollar.
The dollar has been behind since the middle of December and the pound has been one of the strong contenders for this period of time. It gained more than 800 pips against the greenback. There are indications of exhaustion and weakness for the pair. However, it is not just the weakened dollar that buoyed up the pair, the strong pound along with all the soft Brexit plans at the end of the talks.
This supported the pound to rise across markets, especially against the dollar which has been weak recently. However, besides the rhetorics from Trump, there is an increasing expectation for the new Fed chief Powell to take his post, as well as strong incoming data that would strengthen the dollar and induce Fed for rate hikes. The center of attention will be on the dollar in the next few days which is also anticipated to persist for a short period of time.
There is no major report anticipated from the U.S. or from the U.K. today, which is not surprising as it is the first day of the week. However, since the end of the month is approaching, a lot of flows is already expected and trades to be positioned prior the new month which would bring volatility to the pound. This is likely to persist in the next few days since the end of the month is near. Pressure will be eminent in trading but support will be in the area of 1.40.
The British pound against the U.S. dollar has been declining in the past few days as the dollar strengthens, which seems to be the focus at the present time. Following the comments of Trump, the dollar is steadfast due to the positive economic data in the U.S. This resulted in a reversal of profit for the dollar.
The dollar has been behind since the middle of December and the pound has been one of the strong contenders for this period of time. It gained more than 800 pips against the greenback. There are indications of exhaustion and weakness for the pair. However, it is not just the weakened dollar that buoyed up the pair, the strong pound along with all the soft Brexit plans at the end of the talks.
This supported the pound to rise across markets, especially against the dollar which has been weak recently. However, besides the rhetorics from Trump, there is an increasing expectation for the new Fed chief Powell to take his post, as well as strong incoming data that would strengthen the dollar and induce Fed for rate hikes. The center of attention will be on the dollar in the next few days which is also anticipated to persist for a short period of time.
There is no major report anticipated from the U.S. or from the U.K. today, which is not surprising as it is the first day of the week. However, since the end of the month is approaching, a lot of flows is already expected and trades to be positioned prior the new month which would bring volatility to the pound. This is likely to persist in the next few days since the end of the month is near. Pressure will be eminent in trading but support will be in the area of 1.40.
NZD/USD Technical Analysis: January 25, 2018
The Kiwi dollar broke out to upside amid the trading session yesterday, reaching the higher level of 0.74 which is close to the top of the general consolidation area in the longer term and extends to the 0.75 region. The 0.68 below is the lowest area of the largest consolidation zone which means higher price level. However, the American currency is obviously struggling and it remains to be seen for any upward movements. While pull backs could possibly offer value.
A break on top of the 0.75 handle would enable the market to edged higher or an attempt to reach the 0.7750 or 0.80 level. The volatility is projected to continue and the short-term pullback will arrive sooner or later. It is advised not to get attracted in selling due to factor against the US dollar sentiment. Market players should also take focus on commodity markets and the overall risk appetite for this helps gauge the next probable movement of the New Zealand currency. This is the expected event in the longer-term correlation and the Kiwi together with the commodities should ramp up, this will have higher chance to happen if the “soft commodities” rallied. In addition to it, shorting could completely change the sentiment of the Forex market.
The Kiwi dollar broke out to upside amid the trading session yesterday, reaching the higher level of 0.74 which is close to the top of the general consolidation area in the longer term and extends to the 0.75 region. The 0.68 below is the lowest area of the largest consolidation zone which means higher price level. However, the American currency is obviously struggling and it remains to be seen for any upward movements. While pull backs could possibly offer value.
A break on top of the 0.75 handle would enable the market to edged higher or an attempt to reach the 0.7750 or 0.80 level. The volatility is projected to continue and the short-term pullback will arrive sooner or later. It is advised not to get attracted in selling due to factor against the US dollar sentiment. Market players should also take focus on commodity markets and the overall risk appetite for this helps gauge the next probable movement of the New Zealand currency. This is the expected event in the longer-term correlation and the Kiwi together with the commodities should ramp up, this will have higher chance to happen if the “soft commodities” rallied. In addition to it, shorting could completely change the sentiment of the Forex market.
AUD/USD Technical Analysis: January 24, 2018
The Australian currency slightly declined amid Monday’s trading session and moved lower at the 0.7950 region. The rebound on short-term charts are expected along with the resumption of the consolidation period under the major level. A break over the 0.80 zone will enable the market to move upwards or impose a “buy-and-hold” sentiment. However, creating a gap on top of the 0.81 region would indicate a “buy-and-hold” tone with some kind of aggressiveness.
Usually, the gold market is needed in order for the AUD/USD to strengthen its move as well as to break out to the upside direction. It is expected that this situation will continue. Moreover, the gold markets drifted sideways aimed to hit the market in the near-term, but there is some support below which will trigger buyers to push again to the upside sooner or later. If this happens, the 0.78 area could possibly be the main contention area and short-term selling opportunity will hold up in that level. While a break down below there would hit the overall trend but this has low chance to happen with 10% of probability.
Expect for some massive volatility but there is an attempt at forming an attractive base in order to drive higher. It should be noted that the market will advance higher in the future but it should go along with gold.
The Australian currency slightly declined amid Monday’s trading session and moved lower at the 0.7950 region. The rebound on short-term charts are expected along with the resumption of the consolidation period under the major level. A break over the 0.80 zone will enable the market to move upwards or impose a “buy-and-hold” sentiment. However, creating a gap on top of the 0.81 region would indicate a “buy-and-hold” tone with some kind of aggressiveness.
Usually, the gold market is needed in order for the AUD/USD to strengthen its move as well as to break out to the upside direction. It is expected that this situation will continue. Moreover, the gold markets drifted sideways aimed to hit the market in the near-term, but there is some support below which will trigger buyers to push again to the upside sooner or later. If this happens, the 0.78 area could possibly be the main contention area and short-term selling opportunity will hold up in that level. While a break down below there would hit the overall trend but this has low chance to happen with 10% of probability.
Expect for some massive volatility but there is an attempt at forming an attractive base in order to drive higher. It should be noted that the market will advance higher in the future but it should go along with gold.
EUR/USD Fundamental Analysis: January 22, 2018
The euro is being traded steadily since morning today. It seems that it weakened during Friday and it was able to support the level of 1.22 following the rebound to the support area and soared higher which continues until today. There has been major news from the U.S. and the eurozone which would bring volatility in the market.
Although the volatility present was insufficient to push the pair in either direction and stayed within a tight range between 1.22 and 1.23 over the past few weeks. There is a risk for a government closure as the bill has been passed which was blocked in the Senate through suffrage. It is anticipated that there will be an interim bill which will occur during the U.S. session. Nevertheless, this would have an effect on the dollar amid the various problems the U.S. encounter in the past few years.
This would be problematic for the Trump administration, which is not surprising. There are reports where the debate between Merkel and SPD party would continue looking for a coalition for short-term. This would keep the euro buoyed up during this period of time. There is also a press conference by the end of the week which is anticipated by the market on the decision of ECB.
For today, there are no major news from the U.S or the eurozone, which is already anticipated to happen in the second half of January. Although, there is various economic news to be reconsidered on either side, which would induce the volatility at bay.
The euro is being traded steadily since morning today. It seems that it weakened during Friday and it was able to support the level of 1.22 following the rebound to the support area and soared higher which continues until today. There has been major news from the U.S. and the eurozone which would bring volatility in the market.
Although the volatility present was insufficient to push the pair in either direction and stayed within a tight range between 1.22 and 1.23 over the past few weeks. There is a risk for a government closure as the bill has been passed which was blocked in the Senate through suffrage. It is anticipated that there will be an interim bill which will occur during the U.S. session. Nevertheless, this would have an effect on the dollar amid the various problems the U.S. encounter in the past few years.
This would be problematic for the Trump administration, which is not surprising. There are reports where the debate between Merkel and SPD party would continue looking for a coalition for short-term. This would keep the euro buoyed up during this period of time. There is also a press conference by the end of the week which is anticipated by the market on the decision of ECB.
For today, there are no major news from the U.S or the eurozone, which is already anticipated to happen in the second half of January. Although, there is various economic news to be reconsidered on either side, which would induce the volatility at bay.
USD/JPY Technical Analysis: January 19, 2018
The U.S. dollar pulled back during the Thursday session and move towards the 111 level, which was offered both as support and resistance in the past that made it not surprised. There is a possibility for the price to rebound and reach the level of 112. Taking into consideration that the market is highly sensitive to risk appetite as a whole. The noise will probably persist in the market but there is nothing new for the Japanese yen in general.
As a rule, traders should buy when the S&P 500 and sell when it breaks down. Generally, the market proceeds to find support. Eventually, the market proceeds to find support close to the level of 110 with 61.8% Fibonacci retracement level. As a buyer, I realized that this market is good for short-term but not long-term ones. However, there is still choppiness in the market which should be taken seriously with respect. The attitude of the market changes every day and traders should be cautious in this regard with risk in the market. If it breaks down lower than the 110 level, this is likely to move lower towards 107.50 level. Although, this will most likely not happen soon since there is support below.
The U.S. dollar pulled back during the Thursday session and move towards the 111 level, which was offered both as support and resistance in the past that made it not surprised. There is a possibility for the price to rebound and reach the level of 112. Taking into consideration that the market is highly sensitive to risk appetite as a whole. The noise will probably persist in the market but there is nothing new for the Japanese yen in general.
As a rule, traders should buy when the S&P 500 and sell when it breaks down. Generally, the market proceeds to find support. Eventually, the market proceeds to find support close to the level of 110 with 61.8% Fibonacci retracement level. As a buyer, I realized that this market is good for short-term but not long-term ones. However, there is still choppiness in the market which should be taken seriously with respect. The attitude of the market changes every day and traders should be cautious in this regard with risk in the market. If it breaks down lower than the 110 level, this is likely to move lower towards 107.50 level. Although, this will most likely not happen soon since there is support below.
EUR/USD Fundamental Analysis: January 18, 2018
There is choppiness in trading the EUR/USD pair and continues its trading between 1.22 and 1.23 without no specific direction yet. Yesterday, the pair moved higher in the first half of the day, which will most likely favor the dollar. However, it shifted by the end of the day when the dollar has recovered and became stronger.
The euro has been gaining momentum in the past week although the euro rallied against the dollar in the previous month, which was influenced by the decline of the dollar while the euro became stronger. It was only in the past week that the euro started to strengthen independently due to the possibility of ECB tapering and completion of the quantitative easing by the end of the year. This largely influenced the euro as it rose higher and has most likely continued during the first half of yesterday. It reached the level of 1.23 and established a beeline on the trend.
Yet, this was reversed during the second half of the day as the ECB was thrown into a disarray following the quick rise of the euro and should be brought down through statements and confirmation of the QE to return to normal levels. It clearly shows that their position would lead to termination of the QE, which was further supported by the incoming data. Although the central would rather strengthen the euro slowly. Thus, this supported the euro and slid down while the dollar was able to grow during the U.S. trading session and further pushed the price lower than 1.22 as of the moment.
For today, there are is no major news from the U.S. or the eurozone, which will most likely continue the choppiness for the day. Support is found in the area of 1.2180 then move further towards 1.21.
There is choppiness in trading the EUR/USD pair and continues its trading between 1.22 and 1.23 without no specific direction yet. Yesterday, the pair moved higher in the first half of the day, which will most likely favor the dollar. However, it shifted by the end of the day when the dollar has recovered and became stronger.
The euro has been gaining momentum in the past week although the euro rallied against the dollar in the previous month, which was influenced by the decline of the dollar while the euro became stronger. It was only in the past week that the euro started to strengthen independently due to the possibility of ECB tapering and completion of the quantitative easing by the end of the year. This largely influenced the euro as it rose higher and has most likely continued during the first half of yesterday. It reached the level of 1.23 and established a beeline on the trend.
Yet, this was reversed during the second half of the day as the ECB was thrown into a disarray following the quick rise of the euro and should be brought down through statements and confirmation of the QE to return to normal levels. It clearly shows that their position would lead to termination of the QE, which was further supported by the incoming data. Although the central would rather strengthen the euro slowly. Thus, this supported the euro and slid down while the dollar was able to grow during the U.S. trading session and further pushed the price lower than 1.22 as of the moment.
For today, there are is no major news from the U.S. or the eurozone, which will most likely continue the choppiness for the day. Support is found in the area of 1.2180 then move further towards 1.21.
USD/JPY Technical Analysis: January 17, 2018
There has been a choppy trading for the U.S. dollar during the Tuesday session, the day of returning to work for Americans. Looking at the hourly chart, a slight downward occurred. There are also some major levels and expect the presence of noise in the market.
The U.S. dollar swayed back and forth yesterday. The next trading level would be at 111 which is a bit resistive. If the market breaks higher, it will probably be at 112 which has been significant in the past. It seems that there will be downward pressure and push the market towards 110. Overall, there will be noise in the market that puts the global economic outlook at a better position and at the same time, there is general selling of the U.S. dollar.
Hence, there will be high volatility in the market, which will attract more traders. If the pair breaks lower than the significant level of 110, the market will probably move down towards 108 soon after. Moreover, there are a lot of areas to cover which will highlight every 100 pips. Amid the presence of noise, the market could bounce back which would become an important pullback.
There has been a choppy trading for the U.S. dollar during the Tuesday session, the day of returning to work for Americans. Looking at the hourly chart, a slight downward occurred. There are also some major levels and expect the presence of noise in the market.
The U.S. dollar swayed back and forth yesterday. The next trading level would be at 111 which is a bit resistive. If the market breaks higher, it will probably be at 112 which has been significant in the past. It seems that there will be downward pressure and push the market towards 110. Overall, there will be noise in the market that puts the global economic outlook at a better position and at the same time, there is general selling of the U.S. dollar.
Hence, there will be high volatility in the market, which will attract more traders. If the pair breaks lower than the significant level of 110, the market will probably move down towards 108 soon after. Moreover, there are a lot of areas to cover which will highlight every 100 pips. Amid the presence of noise, the market could bounce back which would become an important pullback.
GBP/USD Fundamental Analysis: January 16, 2018
There is a hint of bullishness in yesterday’s trading session of the pound since there is no fundamental news to affect the market aside from the bank of the holiday in the U.S. As a result, the pound bulls have become relax in trading. Most likely, this is one of the reasons why the pair has been steady in the past few days but failed to break the level of 1.38 amid the weakness of the dollar.
Other than that, it could possibly be because of a big news expected to come this week, particularly the inflation data and retail sales data. Traders and investors anticipate the data prior to positioning themselves to any direction. The incoming data from the U.K. came out stronger which brought choppiness to trading while others came in weak, which has brought further uncertainty to the Brexit negotiations and affect the U.K. economy.
Yet, the pound was able to take advantage of euro strengthening and the weakening of the dollar. Although, this may not last for a long time. More importantly, the pound is beginning to gain momentum to move higher regardless of its condition. Also, rate hikes from the U.K. are also becoming an issue after its one rate hike last year. The succeeding hikes are deemed to be more important and the central bank has to be certain on its support actions from last year to boost the U.K. economy and confidence of investors.
There is no major news from the U.S. for today but the U.S. is presumed to return to the market following their long weekend holiday. On the other end, the inflation from the U. K. is highly anticipated later this day as it will have a significant insight on the movement of the market and give a hint on which direction does the GBP/USD pair will go.
There is a hint of bullishness in yesterday’s trading session of the pound since there is no fundamental news to affect the market aside from the bank of the holiday in the U.S. As a result, the pound bulls have become relax in trading. Most likely, this is one of the reasons why the pair has been steady in the past few days but failed to break the level of 1.38 amid the weakness of the dollar.
Other than that, it could possibly be because of a big news expected to come this week, particularly the inflation data and retail sales data. Traders and investors anticipate the data prior to positioning themselves to any direction. The incoming data from the U.K. came out stronger which brought choppiness to trading while others came in weak, which has brought further uncertainty to the Brexit negotiations and affect the U.K. economy.
Yet, the pound was able to take advantage of euro strengthening and the weakening of the dollar. Although, this may not last for a long time. More importantly, the pound is beginning to gain momentum to move higher regardless of its condition. Also, rate hikes from the U.K. are also becoming an issue after its one rate hike last year. The succeeding hikes are deemed to be more important and the central bank has to be certain on its support actions from last year to boost the U.K. economy and confidence of investors.
There is no major news from the U.S. for today but the U.S. is presumed to return to the market following their long weekend holiday. On the other end, the inflation from the U. K. is highly anticipated later this day as it will have a significant insight on the movement of the market and give a hint on which direction does the GBP/USD pair will go.
NZD/USD Technical Analysis: January 10, 2018
During the trading course on Tuesday, the New Zealand dollar appears to be choppy and mainly negative. The marketplace is characterized as wrist sensitive because the NZ dollar is generally influenced by “risk appetite” and commodity markets. Aside from that, there exist a dollar bias that further leads the market.
The 0.7150 mark looks like offering some kind of support for the NZD/USD currency pair, which appeared to be really strong lately. But the markets are consolidating which means that pullbacks are expected to attempt establishing momentum in order to resume the move to the upside. The longer-term charts imply consolidation between the 0.68 region on the bottom and 0.75 level above, which caused the market to resume further consolidation but the situation is regarded to be larger and longer term.
There is a tendency for the market to continue buying on the dips due to inability to reach the top of the consolidation zone after the rebound from the bottom. The Kiwi dollar would likely be slightly oversold, therefore, it is acceptable for some recovery and normality. Upon the breakdown, a significant support at the 0.71 handle should be expected which is previously a significant resistances and accompanied by a large gap since the past few weeks. Most likely, the American currency will continue to lose it strength.
During the trading course on Tuesday, the New Zealand dollar appears to be choppy and mainly negative. The marketplace is characterized as wrist sensitive because the NZ dollar is generally influenced by “risk appetite” and commodity markets. Aside from that, there exist a dollar bias that further leads the market.
The 0.7150 mark looks like offering some kind of support for the NZD/USD currency pair, which appeared to be really strong lately. But the markets are consolidating which means that pullbacks are expected to attempt establishing momentum in order to resume the move to the upside. The longer-term charts imply consolidation between the 0.68 region on the bottom and 0.75 level above, which caused the market to resume further consolidation but the situation is regarded to be larger and longer term.
There is a tendency for the market to continue buying on the dips due to inability to reach the top of the consolidation zone after the rebound from the bottom. The Kiwi dollar would likely be slightly oversold, therefore, it is acceptable for some recovery and normality. Upon the breakdown, a significant support at the 0.71 handle should be expected which is previously a significant resistances and accompanied by a large gap since the past few weeks. Most likely, the American currency will continue to lose it strength.
GBP/USD Fundamental Analysis: January 9, 2018
The GBP/USD pair trades around a tight range yesterday considering the fact that consolidation period is already expected in the markets. The US dollar remained unchanged, as it traded initially for the week, the course showed mainly about trade positioning and the price action was monitored by the market participants which limits market’s actions.
The British economy is predicted to recover if the Brexit process will flow according to the plan. The economic data issued from the United Kingdom last week was choppy and should be regarded as an indication for negotiators about the importance of Brexit talks to go as planned r else it might bring adverse effect for the UK economy. This was avoided almost be everyone since uncertain UK economy is far from the goal of international leaders. With this, the leaders of Euro and the UK will be responsible for this and should outline some good trade agreement for both sides.
On the other hand, the United States are waiting for the incoming data because the figures sent last week was choppy and obscure. The market expects for a three-time rate hike this 2018, however, the new Fed Chair Jerome Powell will take over in February and it remains uncertain about his plans and the way he works. Hence, this could lead to some risks for the dollar and the American economy as well. The Federal Reserve and the upcoming data should coincide in order to drive away this concept, resulting in stability for the dollar which is essential for the world economy.
Generally, there are no fundamentals or economic data from the UK or the US for today but the ranging between the levels of 1.35 and 1.36 should resume in order to engage more participants, particularly the day traders.
The GBP/USD pair trades around a tight range yesterday considering the fact that consolidation period is already expected in the markets. The US dollar remained unchanged, as it traded initially for the week, the course showed mainly about trade positioning and the price action was monitored by the market participants which limits market’s actions.
The British economy is predicted to recover if the Brexit process will flow according to the plan. The economic data issued from the United Kingdom last week was choppy and should be regarded as an indication for negotiators about the importance of Brexit talks to go as planned r else it might bring adverse effect for the UK economy. This was avoided almost be everyone since uncertain UK economy is far from the goal of international leaders. With this, the leaders of Euro and the UK will be responsible for this and should outline some good trade agreement for both sides.
On the other hand, the United States are waiting for the incoming data because the figures sent last week was choppy and obscure. The market expects for a three-time rate hike this 2018, however, the new Fed Chair Jerome Powell will take over in February and it remains uncertain about his plans and the way he works. Hence, this could lead to some risks for the dollar and the American economy as well. The Federal Reserve and the upcoming data should coincide in order to drive away this concept, resulting in stability for the dollar which is essential for the world economy.
Generally, there are no fundamentals or economic data from the UK or the US for today but the ranging between the levels of 1.35 and 1.36 should resume in order to engage more participants, particularly the day traders.
EUR/USD Technical Analysis: January 3, 2018
The Euro against the U.S. dollar climbed higher testing the resistance levels because of the exceedingly strong results of the manufacturing PMI following hints of the ECB meeting to end the quantitative easing in 2018. The European Central Bank has adjusted to the situation but with a steady inflation and progressive growth propelled the euro at a much higher rate.
The EUR/USD pair reached close to the September high at 1.2092 but was unsuccessful in breaking this rate. A strong euro has put pressure on the European stocks putting corporations into the lesser advantage against their competitors. The support level is found close to the 10-day Moving Average at 1.1920. The MACD histogram has been positive as it is printed in black with an upward sloping trajectory which could lead to a much higher Forex rate. The RSI indicator also gives an increasing positive momentum although the current rate is at 71. This is much higher than the overbought level of 70, which hints the possibility for a correction.
The Euro against the U.S. dollar climbed higher testing the resistance levels because of the exceedingly strong results of the manufacturing PMI following hints of the ECB meeting to end the quantitative easing in 2018. The European Central Bank has adjusted to the situation but with a steady inflation and progressive growth propelled the euro at a much higher rate.
The EUR/USD pair reached close to the September high at 1.2092 but was unsuccessful in breaking this rate. A strong euro has put pressure on the European stocks putting corporations into the lesser advantage against their competitors. The support level is found close to the 10-day Moving Average at 1.1920. The MACD histogram has been positive as it is printed in black with an upward sloping trajectory which could lead to a much higher Forex rate. The RSI indicator also gives an increasing positive momentum although the current rate is at 71. This is much higher than the overbought level of 70, which hints the possibility for a correction.
GBP/USD Fundamental Analysis: December 27, 2017
It was a holiday in the majority of the places in Europe, including the U.K. that makes it not surprising if the pound persisted to consolidate and traded within a tight range for the most part of trading yesterday. The GBP/USD pair falls within a tight range since there is few major economic news.
It will not be surprising to have lesser volatility and liquidity this holiday season. At the same time, there is not much placing of trades and more on profit-taking in the past week, which can be seen mostly in the smaller market such as bitcoin. Although, it was not that obvious for pound despite there is a bigger market that is why grabbing the opportunity of any selling of this pair prior to holidays is relevant.
Come the second week of January, both liquidity and volatility will most likely gain momentum. Until then, traders should get ready for choppiness within a range near the end of the year. The market has reopened following a long weekend yet, there is still fewer traders this week since most still wanted to extend their vacation until New Year. Hence, consolidation of the pair within a tight range will persist in the next few days.
When it comes to data the Conference board’s Consumer confidence data from the U.S. is anticipated to be released today but this would not bring much volatility in the market. There is no major economic news from the U.K. Thus, there will be low trading and slow movement in the market for the rest of the day.
It was a holiday in the majority of the places in Europe, including the U.K. that makes it not surprising if the pound persisted to consolidate and traded within a tight range for the most part of trading yesterday. The GBP/USD pair falls within a tight range since there is few major economic news.
It will not be surprising to have lesser volatility and liquidity this holiday season. At the same time, there is not much placing of trades and more on profit-taking in the past week, which can be seen mostly in the smaller market such as bitcoin. Although, it was not that obvious for pound despite there is a bigger market that is why grabbing the opportunity of any selling of this pair prior to holidays is relevant.
Come the second week of January, both liquidity and volatility will most likely gain momentum. Until then, traders should get ready for choppiness within a range near the end of the year. The market has reopened following a long weekend yet, there is still fewer traders this week since most still wanted to extend their vacation until New Year. Hence, consolidation of the pair within a tight range will persist in the next few days.
When it comes to data the Conference board’s Consumer confidence data from the U.S. is anticipated to be released today but this would not bring much volatility in the market. There is no major economic news from the U.K. Thus, there will be low trading and slow movement in the market for the rest of the day.
EUR/USD Fundamental Analysis: December 26, 2017
The euro against the U.S. dollar started with a tight trading week in a facile environment in consideration of the current market situation. Majority of traders are on a vacation this Christmas holiday season and the New Year whereas most of them would not working. This would result to lower volatility and liquidity that would limit the range of trading for this week.
There is also not much economic data on the calendar with fewer fundamentals in the next days to come. The steady dollar was supported by the tax reform bill, which was recently passed by the Senate and signed by the U.S. President. This would benefit m0st of the companies with lots of tax benefits which is as much as important to Trump and his team. At the same time, this is foreseen to improve the labor market and boost the economy in the succeeding years.
Hence, the dollar gained a short-term boost from the bill which will most likely be in effect for this week. The euro is being traded in a right range with minor consolidation in the past few months. Although, the fundamental new was not enough to successfully break the trading range.
It is yet to be discovered where the trend will range and if it is sufficient to sustain the pair within its range until January.
For today, there is not much economic news that is anticipated to be released from the eurozone or from the U.S. It is holidays in most part of Europe, which could result to tight trading range and consolidation throughout the day.
The euro against the U.S. dollar started with a tight trading week in a facile environment in consideration of the current market situation. Majority of traders are on a vacation this Christmas holiday season and the New Year whereas most of them would not working. This would result to lower volatility and liquidity that would limit the range of trading for this week.
There is also not much economic data on the calendar with fewer fundamentals in the next days to come. The steady dollar was supported by the tax reform bill, which was recently passed by the Senate and signed by the U.S. President. This would benefit m0st of the companies with lots of tax benefits which is as much as important to Trump and his team. At the same time, this is foreseen to improve the labor market and boost the economy in the succeeding years.
Hence, the dollar gained a short-term boost from the bill which will most likely be in effect for this week. The euro is being traded in a right range with minor consolidation in the past few months. Although, the fundamental new was not enough to successfully break the trading range.
It is yet to be discovered where the trend will range and if it is sufficient to sustain the pair within its range until January.
For today, there is not much economic news that is anticipated to be released from the eurozone or from the U.S. It is holidays in most part of Europe, which could result to tight trading range and consolidation throughout the day.
GBP/USD Fundamental Analysis: December 20, 2017
The GBP/USD currency pair was able to move ahead of the American dollar, as the USD lower in price amid smooth approval process of the tax bill. The passage was projected to support the dollar to increase, however, the effect was completely different. The market’s reaction remains uncertain not until the bill is already passed through in one of the US Houses and waiting for the Senate approval. However, there could be some delay due to procedural problems which could possibly place some pressure on the greenbacks that could further lead to uncertainty. As expected, the tax reform bill will be enacted by the Senate on a very tight margin and further requires the President’s signature to seal in the law. The whole scenario would likely be completed within this week, hence, the volatility in the USD should keep going until it happens.
The Brexit process does not have much improvement over this week and it is predicted to continue until New Year. Definitely, there will be some strong development in the process since the leaders on both sides clearly stated about the completion of a deal which may take a matter of time prior accomplishing the agreement. This notion seems to provide support for the pound in the past couple of weeks.
Ultimately, BOE Governor Mark Carney will have his speech but the impact to the market is predicted to be minimal. The market trend for today would likely be led by the USD and tax bill legislation. It is believed that the greens should gain more strength in the short and medium term in order to maintain the GBPUSD active.
The GBP/USD currency pair was able to move ahead of the American dollar, as the USD lower in price amid smooth approval process of the tax bill. The passage was projected to support the dollar to increase, however, the effect was completely different. The market’s reaction remains uncertain not until the bill is already passed through in one of the US Houses and waiting for the Senate approval. However, there could be some delay due to procedural problems which could possibly place some pressure on the greenbacks that could further lead to uncertainty. As expected, the tax reform bill will be enacted by the Senate on a very tight margin and further requires the President’s signature to seal in the law. The whole scenario would likely be completed within this week, hence, the volatility in the USD should keep going until it happens.
The Brexit process does not have much improvement over this week and it is predicted to continue until New Year. Definitely, there will be some strong development in the process since the leaders on both sides clearly stated about the completion of a deal which may take a matter of time prior accomplishing the agreement. This notion seems to provide support for the pound in the past couple of weeks.
Ultimately, BOE Governor Mark Carney will have his speech but the impact to the market is predicted to be minimal. The market trend for today would likely be led by the USD and tax bill legislation. It is believed that the greens should gain more strength in the short and medium term in order to maintain the GBPUSD active.
EUR/USD Technical Analysis: December 13, 2017
The EURUSD edged downwards as the German investor confidence came in weaker than predicted results, along with the robust figures of American inflation data that reinforced the US dollar and put pressure on the single European currency. Small business confidence in the United States also showed secured position combined with strong U.S. chain store sales.
Originally, the euro-dollar pair trailed lower on Tuesday and drove upwards to test the resistance at 1.1819 area near the 10-day moving average. The support of the pair touched the 1.1675 region around the ascending trend line. While prices generate a topping formation and market participant anticipates for the Fed decision as the central bank is highly expected to increase interest rates in the US by 25 basis points. The momentum became negative and the MACD indicator created a crossover sell signal. The moving average convergence divergence further prints in the red with a descending trajectory which implies for a lower exchange of rate.
The EURUSD edged downwards as the German investor confidence came in weaker than predicted results, along with the robust figures of American inflation data that reinforced the US dollar and put pressure on the single European currency. Small business confidence in the United States also showed secured position combined with strong U.S. chain store sales.
Originally, the euro-dollar pair trailed lower on Tuesday and drove upwards to test the resistance at 1.1819 area near the 10-day moving average. The support of the pair touched the 1.1675 region around the ascending trend line. While prices generate a topping formation and market participant anticipates for the Fed decision as the central bank is highly expected to increase interest rates in the US by 25 basis points. The momentum became negative and the MACD indicator created a crossover sell signal. The moving average convergence divergence further prints in the red with a descending trajectory which implies for a lower exchange of rate.
GBP/USD Fundamental Analysis: December 6, 2017
The pound dollar pair resumed declining as the greenbacks remain unchanged. The market is generally preferred a wait-and-see mode since this last month of the year. However, the case of the British pound would likely show higher volatility due to the emergence of political turmoil within and over the United Kingdom. This further caused the GBP to weaken which was seen in the past couple of days.
During the previous entire week, the sterling is crowned to be the strongest currency among its rivals because of the agreement prospect concluded in the Brexit negotiations that helped the bid to keep under the British currency. Moreover, the pound climbs higher to the 1.35 mark and seems that the Cable pair plans to ascend to the 1.38 level upon the release of the contract details within this week or the next. There are expectations that everyone will end the year with satisfaction after the details were announced.
Nevertheless, the opposition of the DUP party towards the Irish borders interrupted the deal that erased hopes for the current week. This deterred the plans of UK Prime Minister Theresa May that delayed her domestic and international plans. It may also imply a tough decision to conduct any deal in the short-term for this apparently put pressure on the pound, while the pair slumped again to the 1.34 mark amid the current trading course.
Ultimately, there are no major economic releases from Britain as the spotlight is turned to the USD and the ADP employment report scheduled later today. On the other hand, UK services PMI data showed some weakness yesterday that further contributed pressure on the GBP. In case that the ADP figures came in positive, then the pair is expected to soften in the near-term.
The pound dollar pair resumed declining as the greenbacks remain unchanged. The market is generally preferred a wait-and-see mode since this last month of the year. However, the case of the British pound would likely show higher volatility due to the emergence of political turmoil within and over the United Kingdom. This further caused the GBP to weaken which was seen in the past couple of days.
During the previous entire week, the sterling is crowned to be the strongest currency among its rivals because of the agreement prospect concluded in the Brexit negotiations that helped the bid to keep under the British currency. Moreover, the pound climbs higher to the 1.35 mark and seems that the Cable pair plans to ascend to the 1.38 level upon the release of the contract details within this week or the next. There are expectations that everyone will end the year with satisfaction after the details were announced.
Nevertheless, the opposition of the DUP party towards the Irish borders interrupted the deal that erased hopes for the current week. This deterred the plans of UK Prime Minister Theresa May that delayed her domestic and international plans. It may also imply a tough decision to conduct any deal in the short-term for this apparently put pressure on the pound, while the pair slumped again to the 1.34 mark amid the current trading course.
Ultimately, there are no major economic releases from Britain as the spotlight is turned to the USD and the ADP employment report scheduled later today. On the other hand, UK services PMI data showed some weakness yesterday that further contributed pressure on the GBP. In case that the ADP figures came in positive, then the pair is expected to soften in the near-term.
EUR/USD Fundamental Analysis: December 4, 2017
The euro paired against the U.S. dollar declined since the dollar is starting to strengthen in the past day. The dollar was the highlight in the past week. This will be applicable for the data which will be released from the U.S. due to political issues.
Tax reform will be pushed through by the Senate which would be beneficial for the greenback. The dollar will continue to climb higher as long as the process goes on accordingly. This is what has been happening since Friday. On the other hand, the issue concerning Flynn adds more pressure to the dollar which will put it in a negative stand.
These changes will most likely be the highlight in the news when it comes to the dollar and focuses the week. The dollar will move steadily during the short-term as the end of the week approaches. The rate hike is also anticipated to push through from the Fed for this month. Even though the dollar will rally for a brief period of time, these factors placed the dollars at a good bidding.
There will be no major news from the eurozone or the U.S. for today. However, the dollar will remain strong for the day because of the reasons mentioned above. This keeps the euro under pressure that could result in consolidation and ranges around the level of 1.19 during the day.
The euro paired against the U.S. dollar declined since the dollar is starting to strengthen in the past day. The dollar was the highlight in the past week. This will be applicable for the data which will be released from the U.S. due to political issues.
Tax reform will be pushed through by the Senate which would be beneficial for the greenback. The dollar will continue to climb higher as long as the process goes on accordingly. This is what has been happening since Friday. On the other hand, the issue concerning Flynn adds more pressure to the dollar which will put it in a negative stand.
These changes will most likely be the highlight in the news when it comes to the dollar and focuses the week. The dollar will move steadily during the short-term as the end of the week approaches. The rate hike is also anticipated to push through from the Fed for this month. Even though the dollar will rally for a brief period of time, these factors placed the dollars at a good bidding.
There will be no major news from the eurozone or the U.S. for today. However, the dollar will remain strong for the day because of the reasons mentioned above. This keeps the euro under pressure that could result in consolidation and ranges around the level of 1.19 during the day.
EUR/USD Fundamental Analysis: December 1, 2017
The EUR/USD pair resumed trading in a robust manner in the past 24 hours while the strength of the US dollar alternately moves higher and lower amid the trading session yesterday. Moreover, this helped the eurodollar pair to go nearer the 1.19 level and continues to trade during the first part of the day on Friday.
The headlines on Thursday was mainly about the American dollar along with its tax reform bill which continues to undergo the Senate. While President Donald Trump and his team remain confident that the bill will be approved, the delayed process has placed pressure on the USD. It is expected that the proposed law will be enacted in the middle day of the week and because of different issues, the approval was delayed. Since we are currently on the last day of the week, the bill is not yet approved, however, it is expected to be passed today.
The ratification of the tax reform could possibly provide a limited and short-term increase to the greens but the underlying strength of the single European currency is clearly apparent for everyone to notice. As the tax reform bill is also priced into the markets, there is no any significant run from the USD regarding the bill enactment. It is still unclear if the euro will keep on gaining strength and reach the 1.20 level which could possibly the next target of the bulls
Ultimately, there are no major economic releases from the United States or the European region for this day, since the tax reform is projected to rule over the present day. The other main focus is the decision of the euro bulls whether to continue pushing the euro higher.
The EUR/USD pair resumed trading in a robust manner in the past 24 hours while the strength of the US dollar alternately moves higher and lower amid the trading session yesterday. Moreover, this helped the eurodollar pair to go nearer the 1.19 level and continues to trade during the first part of the day on Friday.
The headlines on Thursday was mainly about the American dollar along with its tax reform bill which continues to undergo the Senate. While President Donald Trump and his team remain confident that the bill will be approved, the delayed process has placed pressure on the USD. It is expected that the proposed law will be enacted in the middle day of the week and because of different issues, the approval was delayed. Since we are currently on the last day of the week, the bill is not yet approved, however, it is expected to be passed today.
The ratification of the tax reform could possibly provide a limited and short-term increase to the greens but the underlying strength of the single European currency is clearly apparent for everyone to notice. As the tax reform bill is also priced into the markets, there is no any significant run from the USD regarding the bill enactment. It is still unclear if the euro will keep on gaining strength and reach the 1.20 level which could possibly the next target of the bulls
Ultimately, there are no major economic releases from the United States or the European region for this day, since the tax reform is projected to rule over the present day. The other main focus is the decision of the euro bulls whether to continue pushing the euro higher.
EUR/USD Technical Analysis: December 1, 2017
The EUR/USD pair rose because of strong yields as it gained strength after inflation from France and a positive Chinese PMI manufacturing data. The Eurozone inflation came our dovish which resulted in a higher euro major currency pair.
The EUR/USD pair rally as it bounced to the support area close to the 10-day moving average at 1.1836. The resistance was found near the weekly highs at 1.1961. There is a neutral momentum seen in the trend as the MACD was printed in black with a flat trajectory that could lead to a consolidation. The RSI index climbed higher because of the positive impetus in the market.
The EUR/USD pair rose because of strong yields as it gained strength after inflation from France and a positive Chinese PMI manufacturing data. The Eurozone inflation came our dovish which resulted in a higher euro major currency pair.
The EUR/USD pair rally as it bounced to the support area close to the 10-day moving average at 1.1836. The resistance was found near the weekly highs at 1.1961. There is a neutral momentum seen in the trend as the MACD was printed in black with a flat trajectory that could lead to a consolidation. The RSI index climbed higher because of the positive impetus in the market.
Forex is very related to crypto markets, its perfectly reasonable to post. Its probably more of a repost thread I think from elsewhere. Upcoming news of big importance is the Federal reserve possibly hiking rates, at present we lag inflation and this is true for most western countries. This falling value to FIAT currencies is quite a large part of what underlines crypto growth I think, due to a fixed base and known costs.
I think FED policy will be weaker then expected and we will see dollar weaken as a result of that. That is good news for crypto pricing as it has been previously. Rates above inflation would be bearish, with so much debt I'm not sure governments are able to assert a strong dollar policy.
I think FED policy will be weaker then expected and we will see dollar weaken as a result of that. That is good news for crypto pricing as it has been previously. Rates above inflation would be bearish, with so much debt I'm not sure governments are able to assert a strong dollar policy.
EUR/USD Technical Analysis: November 29, 2017
The Euro paired against the U.S. dollar declined once again since the upsurge during the Friday trading session. The German IFO came out better-than-expected was counterbalanced by a steadfast consumer confidence which pushed the OECD with the tendency that overestimated the potential growth of Europe.
The EUR/USD pair declined as it tested the support level close to the 10-day moving average at 1.1818. The resistance level reached close to the September highs of 1.2092. The momentum persists in a good condition as shown in the MACD histogram where the print is black with an upward sloping trajectory that will most likely lead to higher exchange quotes. The head and shoulder reversal pattern was not successful as the peak reached at a neckline close to 1.1660. The latest upsurge has contradicted the reversal.
The Euro paired against the U.S. dollar declined once again since the upsurge during the Friday trading session. The German IFO came out better-than-expected was counterbalanced by a steadfast consumer confidence which pushed the OECD with the tendency that overestimated the potential growth of Europe.
The EUR/USD pair declined as it tested the support level close to the 10-day moving average at 1.1818. The resistance level reached close to the September highs of 1.2092. The momentum persists in a good condition as shown in the MACD histogram where the print is black with an upward sloping trajectory that will most likely lead to higher exchange quotes. The head and shoulder reversal pattern was not successful as the peak reached at a neckline close to 1.1660. The latest upsurge has contradicted the reversal.
USD/JPY Technical Analysis: November 28, 2017
The American dollar weakened versus the Japanese yen throughout the trading session yesterday, while the downward pressure continues. The path towards the 111.50 zone was already cleared and there is a possibility that the market will remain moving down near the bottom area of the overall consolidation felt in the past few months, in case of an extension towards 108 handle. This could possibly true since the US Congress cannot even establish substantial tax bills.
Moreover, it is preferred to impose a buy signal until a break on top of the 112 level on a daily close unless a supportive trend formed around the 108 handle, which is regarded previously as significant and supportive. The market would likely to make a reversal and the US Congress would be able to completely perform its task.
Meanwhile, the current situation can be defined as some sort of “sell the rallies”, as the greenback softened across the board. The JPY remains to be considered as safety currency and a cautious move can be witnessed given enough time. As shown in the hourly chart, a shooting star begins to form at the 111.25 mark which is a previous support and expected to be resistive at this moment. A cut through at the 110 level could possibly the next move and descended beneath the 110 region that nearly open the way through the 108 handle. Generally, a lot of volatility is predicted to continue, however, the general downward pressure remains to be a situation in the market that shows extreme choppiness.
The American dollar weakened versus the Japanese yen throughout the trading session yesterday, while the downward pressure continues. The path towards the 111.50 zone was already cleared and there is a possibility that the market will remain moving down near the bottom area of the overall consolidation felt in the past few months, in case of an extension towards 108 handle. This could possibly true since the US Congress cannot even establish substantial tax bills.
Moreover, it is preferred to impose a buy signal until a break on top of the 112 level on a daily close unless a supportive trend formed around the 108 handle, which is regarded previously as significant and supportive. The market would likely to make a reversal and the US Congress would be able to completely perform its task.
Meanwhile, the current situation can be defined as some sort of “sell the rallies”, as the greenback softened across the board. The JPY remains to be considered as safety currency and a cautious move can be witnessed given enough time. As shown in the hourly chart, a shooting star begins to form at the 111.25 mark which is a previous support and expected to be resistive at this moment. A cut through at the 110 level could possibly the next move and descended beneath the 110 region that nearly open the way through the 108 handle. Generally, a lot of volatility is predicted to continue, however, the general downward pressure remains to be a situation in the market that shows extreme choppiness.
EUR/USD Technical Analysis: November 27, 2017
Most of the economies appeared to have an optimistic situation, however, political concerns that affect Europe especially the argument on German politics that heightened concerns over the nearing elections in Hungary, Italy, and Spain. Nevertheless, the Brexit negotiations are completely on track and conducted a significant move forward. According to reports, the United Kingdom offered further deal to clear the way for the European Council to comply with the initial transition and trade talks on December 14-15 summit.
The long transitional period and initial clarification towards the future relationship between Britain and the European Union seems to be essential for business plans and investments to increase. The EUR/USD pair broke out as Brexit talks could possibly advance and pushes the rate higher and plans to test resistance at 1.2092 level around September highs. The support is at 1.2092 region near the 10-day moving average. The positive momentum moved upwards as the relative strength index (RSI) broke out and climbed higher. It prints a reading of 69 which is located on the upper end of the neutral range heading to a higher exchange rate for the eurodollar. The momentum showed by the MACD histogram trailed upwards as the indicator prints in the black with an ascending trajectory which indicates to higher rates of prices.
Most of the economies appeared to have an optimistic situation, however, political concerns that affect Europe especially the argument on German politics that heightened concerns over the nearing elections in Hungary, Italy, and Spain. Nevertheless, the Brexit negotiations are completely on track and conducted a significant move forward. According to reports, the United Kingdom offered further deal to clear the way for the European Council to comply with the initial transition and trade talks on December 14-15 summit.
The long transitional period and initial clarification towards the future relationship between Britain and the European Union seems to be essential for business plans and investments to increase. The EUR/USD pair broke out as Brexit talks could possibly advance and pushes the rate higher and plans to test resistance at 1.2092 level around September highs. The support is at 1.2092 region near the 10-day moving average. The positive momentum moved upwards as the relative strength index (RSI) broke out and climbed higher. It prints a reading of 69 which is located on the upper end of the neutral range heading to a higher exchange rate for the eurodollar. The momentum showed by the MACD histogram trailed upwards as the indicator prints in the black with an ascending trajectory which indicates to higher rates of prices.
Hello forum members!
Good day!
I am Andrea, an official representative of ForexMart.
Me and my colleagues will provide you daily forex analysis on this thread to help you increase your trading efficiency as well as maximizing your profit. Suggestions, comments or opinions are all welcome. We will also be glad to attend to your inquiries.
We hope to hear from you soon!
Thank you!
Best regards,
ForexMart
I think Andrea is a bot. Not sure. May be an automated script fires the news.Good day!
I am Andrea, an official representative of ForexMart.
Me and my colleagues will provide you daily forex analysis on this thread to help you increase your trading efficiency as well as maximizing your profit. Suggestions, comments or opinions are all welcome. We will also be glad to attend to your inquiries.
We hope to hear from you soon!
Thank you!
Best regards,
ForexMart
It's a useful thing to share the forex news and updates. Is it really helps anything related to crypto currency market? if not could you be able to add those info for people here.
Currency analysis may be useful for Forex traders. I don't think they are more here.
EUR/USD Technical Analysis: November 21, 2017
The single European currency paired with the US Dollar descended and resumed to create a mini-bull flag formation, however, the fundamental and political events coincided against the EURUSD yesterday. The German PPI came in weaker than expected while the failed plan of Merkel to generate a coalition placed pressure to the EUR/USD.
The currency pair currently trades sideways and stayed around the 1.1800 region, after being pushed downwards amid earlier trading hours to test the 1.1704 support area close to the 10-day moving average. The short-term resistance entered the mark 1.1771 around the 50- day moving average. The positive momentum declined as the MACD (moving average convergence divergence) histogram prints in the black. The trajectory of the indicator appears to be negative which implies consolidation towards the pair. The RSI also traded sideways showing a reading of 52 fixed in the middle of the neutral range. It further suggests consolidation.
Yes indeed its very important to do analysis of forexmart because thousands of people are doing trade and investment here so I think it will not fallow forexmart so I’m sure we can’t do good trade or investment here because if a person who don’t know about forexmart so how he can buy or sell things because its related with price and price really matter for bitcoin if the price still remain on one place so it will lose its value. The single European currency paired with the US Dollar descended and resumed to create a mini-bull flag formation, however, the fundamental and political events coincided against the EURUSD yesterday. The German PPI came in weaker than expected while the failed plan of Merkel to generate a coalition placed pressure to the EUR/USD.
The currency pair currently trades sideways and stayed around the 1.1800 region, after being pushed downwards amid earlier trading hours to test the 1.1704 support area close to the 10-day moving average. The short-term resistance entered the mark 1.1771 around the 50- day moving average. The positive momentum declined as the MACD (moving average convergence divergence) histogram prints in the black. The trajectory of the indicator appears to be negative which implies consolidation towards the pair. The RSI also traded sideways showing a reading of 52 fixed in the middle of the neutral range. It further suggests consolidation.
GBP/USD Fundamental Analysis: November 24, 2017
The British pound moved at a steady pace for the day as the pound bulls could not really make use of the long weekend in the U.S. which induced low volatility in the past 24 hours. This resulted in a subdued trading of the currency since the GDP data has been released which does not have much of an effect on traders as well as the volatility.
The publication of the GDP data marked the day which is already anticipated. Yet, this did not have any significant effect on the pound quotations. This would be beneficial for the pound bulls since the economy is about to balance out. Moreover, another budget data which was released the other day giving a positive result that sustained the rate of the pound for short-term amid the Brexit negotiations.
The domestic concerns of the country which were face UK PM May and the German leader Merkel but this has a minimal effect on the Brexit talks. It is already presumed that a breakout would occur after the December meeting which is yet to be observed where there will be an agreement between countries. Ultimately, this will be beneficial for the U.K. economy as well as the pound yet this are just prospects.
For today, there is less economic calendar along with the U.S. Thanksgiving for the weekend. The pound is anticipated to range within narrow levels and consolidate through the course of the day. This day will most likely result in a lackluster trading as the weekend is drawing closer.
The British pound moved at a steady pace for the day as the pound bulls could not really make use of the long weekend in the U.S. which induced low volatility in the past 24 hours. This resulted in a subdued trading of the currency since the GDP data has been released which does not have much of an effect on traders as well as the volatility.
The publication of the GDP data marked the day which is already anticipated. Yet, this did not have any significant effect on the pound quotations. This would be beneficial for the pound bulls since the economy is about to balance out. Moreover, another budget data which was released the other day giving a positive result that sustained the rate of the pound for short-term amid the Brexit negotiations.
The domestic concerns of the country which were face UK PM May and the German leader Merkel but this has a minimal effect on the Brexit talks. It is already presumed that a breakout would occur after the December meeting which is yet to be observed where there will be an agreement between countries. Ultimately, this will be beneficial for the U.K. economy as well as the pound yet this are just prospects.
For today, there is less economic calendar along with the U.S. Thanksgiving for the weekend. The pound is anticipated to range within narrow levels and consolidate through the course of the day. This day will most likely result in a lackluster trading as the weekend is drawing closer.
GBP/USD Fundamental Analysis: November 23, 2017
The GBP/USD pair gained more strength from the American dollar than the British pound after the publication of FOMC minutes. The announcement of budget and UK economic outlook had a slight impact towards the pound, hence, the weakness that was left in the dollar provided support to the Cable pair in order to edged higher.
This day is predicted to be highly volatile for the GBP due to the UK budget announcement and FOMC minutes in the United States later. If this happens, the GBPUSD would decline to the 1.3220 mark during the London hours after the issued news relative with the Britain’s budget, however, when the details were already published the flow is expected to reverse.
The announced budget seems to have huge borrowing amount that softened the sterling initially but reduced the trend productivity. This helped the pair to make a reversal and drive upwards near the 1.3250 level. Moreover, the GBP remained unchanged until the issuance of the Fed minutes which said that majority of the members agreed with the rate hike in December, but the following increase is not yet sure.
Mainly, concerns regarding inflation continues and the central bank stated that they wanted to wait for further upcoming data prior making a final decision for a further rate increase. The focus of the market is centered on the dovish statement that will weaken the greenbacks as well as to support the Cable to move near the 1.33 level. The pair is currently trading above 1.33 and would be better to push towards the mark 1.34 in the short-term.
Ultimately, the second estimate for the UK GDP is expected to release and marks the onset of the long weekend due to US Thanksgiving celebration. This indicates that liquidity may dry up while volatility could possibly lower down. In that event, it is not surprising for a boring consolidation for the rest of the day.
The GBP/USD pair gained more strength from the American dollar than the British pound after the publication of FOMC minutes. The announcement of budget and UK economic outlook had a slight impact towards the pound, hence, the weakness that was left in the dollar provided support to the Cable pair in order to edged higher.
This day is predicted to be highly volatile for the GBP due to the UK budget announcement and FOMC minutes in the United States later. If this happens, the GBPUSD would decline to the 1.3220 mark during the London hours after the issued news relative with the Britain’s budget, however, when the details were already published the flow is expected to reverse.
The announced budget seems to have huge borrowing amount that softened the sterling initially but reduced the trend productivity. This helped the pair to make a reversal and drive upwards near the 1.3250 level. Moreover, the GBP remained unchanged until the issuance of the Fed minutes which said that majority of the members agreed with the rate hike in December, but the following increase is not yet sure.
Mainly, concerns regarding inflation continues and the central bank stated that they wanted to wait for further upcoming data prior making a final decision for a further rate increase. The focus of the market is centered on the dovish statement that will weaken the greenbacks as well as to support the Cable to move near the 1.33 level. The pair is currently trading above 1.33 and would be better to push towards the mark 1.34 in the short-term.
Ultimately, the second estimate for the UK GDP is expected to release and marks the onset of the long weekend due to US Thanksgiving celebration. This indicates that liquidity may dry up while volatility could possibly lower down. In that event, it is not surprising for a boring consolidation for the rest of the day.
EUR/USD Technical Analysis: November 22, 2017
The EUR/USD pair was traded in a narrow range during the shortened week because of the holiday that affects both America and Japan on Thursday. The dollar gained momentum at the beginning following a positive home sales report that boosted the U.S. greater than 2 percent.
The U.S. Chicago Fed National Activity index rose in October as well as the Retail store sales in the past week which is due to the busy holiday season.
The euro major pair rebounded at the support level close to the 10-day Moving Average at 1.1718 which stays afloat higher than the neckline of the head and shoulder pattern. Although, it was not able to initiate liquidation for long-term. There is a resistance found close to the
November highs at 1.1860. The forward momentum is declining as the MACD histogram print is in black with a southward trajectory which could lead to the consolidation of the pair.
The EUR/USD pair was traded in a narrow range during the shortened week because of the holiday that affects both America and Japan on Thursday. The dollar gained momentum at the beginning following a positive home sales report that boosted the U.S. greater than 2 percent.
The U.S. Chicago Fed National Activity index rose in October as well as the Retail store sales in the past week which is due to the busy holiday season.
The euro major pair rebounded at the support level close to the 10-day Moving Average at 1.1718 which stays afloat higher than the neckline of the head and shoulder pattern. Although, it was not able to initiate liquidation for long-term. There is a resistance found close to the
November highs at 1.1860. The forward momentum is declining as the MACD histogram print is in black with a southward trajectory which could lead to the consolidation of the pair.
EUR/USD Fundamental Analysis: November 21, 2017
The EUR/USD pair has a choppy which lead the whole trading session in the past 24 hours.Although, this was influenced by the events in Germany which have put pressure on the market. The euro was affected by the news of the coalition talks in Germany which resulted in a breakdown and declined to a much lower rate during the Asian session. It seems that the euro will be weakened but this was reversed during the trading session as it gained strength.
The euro climbed higher reaching the level of 1.18 as the market ignored the happenings which moved the whole trend higher. It was clearly shown that there is some pressure in the pressure which would be more obvious later on. It initiated during the U.S. session but the euro declined once again lower than the 1.1750 by the end of the day and will most likely continue.
Merkel has been facing an obstacle that has weakened both locally and internationally amid the Brexit negotiations. She would want to be in alliance with other parties although, she knows that this would not be easy. Another option is for her to go for another election but this would bring more uncertainty. It cannot be determined if she will come out stronger or would weaker position in the election. This shaken the German market which also affected the euro.
For today, there is no major news anticipated from the Eurozone or from the U.S. The euro is anticipated to trade in a weak manner in the course of the day and reached lower than the level of 1.17 until there are still pressure present in the market.
The EUR/USD pair has a choppy which lead the whole trading session in the past 24 hours.Although, this was influenced by the events in Germany which have put pressure on the market. The euro was affected by the news of the coalition talks in Germany which resulted in a breakdown and declined to a much lower rate during the Asian session. It seems that the euro will be weakened but this was reversed during the trading session as it gained strength.
The euro climbed higher reaching the level of 1.18 as the market ignored the happenings which moved the whole trend higher. It was clearly shown that there is some pressure in the pressure which would be more obvious later on. It initiated during the U.S. session but the euro declined once again lower than the 1.1750 by the end of the day and will most likely continue.
Merkel has been facing an obstacle that has weakened both locally and internationally amid the Brexit negotiations. She would want to be in alliance with other parties although, she knows that this would not be easy. Another option is for her to go for another election but this would bring more uncertainty. It cannot be determined if she will come out stronger or would weaker position in the election. This shaken the German market which also affected the euro.
For today, there is no major news anticipated from the Eurozone or from the U.S. The euro is anticipated to trade in a weak manner in the course of the day and reached lower than the level of 1.17 until there are still pressure present in the market.
EUR/USD Technical Analysis: November 21, 2017
The single European currency paired with the US Dollar descended and resumed to create a mini-bull flag formation, however, the fundamental and political events coincided against the EURUSD yesterday. The German PPI came in weaker than expected while the failed plan of Merkel to generate a coalition placed pressure to the EUR/USD.
The currency pair currently trades sideways and stayed around the 1.1800 region, after being pushed downwards amid earlier trading hours to test the 1.1704 support area close to the 10-day moving average. The short-term resistance entered the mark 1.1771 around the 50- day moving average. The positive momentum declined as the MACD (moving average convergence divergence) histogram prints in the black. The trajectory of the indicator appears to be negative which implies consolidation towards the pair. The RSI also traded sideways showing a reading of 52 fixed in the middle of the neutral range. It further suggests consolidation.
The single European currency paired with the US Dollar descended and resumed to create a mini-bull flag formation, however, the fundamental and political events coincided against the EURUSD yesterday. The German PPI came in weaker than expected while the failed plan of Merkel to generate a coalition placed pressure to the EUR/USD.
The currency pair currently trades sideways and stayed around the 1.1800 region, after being pushed downwards amid earlier trading hours to test the 1.1704 support area close to the 10-day moving average. The short-term resistance entered the mark 1.1771 around the 50- day moving average. The positive momentum declined as the MACD (moving average convergence divergence) histogram prints in the black. The trajectory of the indicator appears to be negative which implies consolidation towards the pair. The RSI also traded sideways showing a reading of 52 fixed in the middle of the neutral range. It further suggests consolidation.
GBP/USD Fundamental Analysis: November 20, 2017
The British pound persisted to move at a fixed rate but it is the opposite to the euro currency because of the news from German coalition talks. The pound has taken advantage of the low dollar as it rose to 1.32 level. However, it is still to be observed if this move higher.
The latest news from Germany will most likely affect the British pound as well as other countries of the Eurozone with the ongoing Brexit talk. Thinking about it, the current situation facing Merkel in Germany may be similar with U.K. Prime minister Theresa May as she also fights her own battle. However, it should be considered that any changes to cause uncertainty would most likely affect the Brexit as well. This will not be favorable to Germany or U.K. Nevertheless, both countries would want a good transition and come to a conclusion that would be beneficial for both ends.
Any uncertainty in Germany would slow down the talks and look forward to an agreement which could complicate more things further and be disadvantageous for the pound in long-term. Aggressive leaders are best suited in the current situation as they are looking for a conclusion. However, some domestic concerns are hampering the process which gets their attention. For short term, the British pound could have some gains because of uncertainty from Germany. However, this could have a negative impact on the U.K. for the long term if this situation is prolonged.
For today, the British pound seems to be put under pressure as it depreciates against euro during the London session. There is no major news from the U.S. or from the U.K. in other times of the day. Consequently, the consolidation with a bearish tone is anticipated to take place today.
The British pound persisted to move at a fixed rate but it is the opposite to the euro currency because of the news from German coalition talks. The pound has taken advantage of the low dollar as it rose to 1.32 level. However, it is still to be observed if this move higher.
The latest news from Germany will most likely affect the British pound as well as other countries of the Eurozone with the ongoing Brexit talk. Thinking about it, the current situation facing Merkel in Germany may be similar with U.K. Prime minister Theresa May as she also fights her own battle. However, it should be considered that any changes to cause uncertainty would most likely affect the Brexit as well. This will not be favorable to Germany or U.K. Nevertheless, both countries would want a good transition and come to a conclusion that would be beneficial for both ends.
Any uncertainty in Germany would slow down the talks and look forward to an agreement which could complicate more things further and be disadvantageous for the pound in long-term. Aggressive leaders are best suited in the current situation as they are looking for a conclusion. However, some domestic concerns are hampering the process which gets their attention. For short term, the British pound could have some gains because of uncertainty from Germany. However, this could have a negative impact on the U.K. for the long term if this situation is prolonged.
For today, the British pound seems to be put under pressure as it depreciates against euro during the London session. There is no major news from the U.S. or from the U.K. in other times of the day. Consequently, the consolidation with a bearish tone is anticipated to take place today.
EUR/USD Fundamental Analysis: November 17, 2017
The EUR/USD pair had been moving unsteadily in the past few days as the pair moves up and down with high volatility as the greenback moves without a specific direction in the present global tone. The dollar is appealing to be bought in the short term yet the market maybe thinking twice. Although, there are instances where the rally of the dollar where it is being sold at a faster rate.
This maintains the pressure in the dollar and which would be advantageous for the euro. What’s keeping the market optimistic for the dollar is a rate hike from the Fed in December although, the market does not strongly believe this. There are no specific indications yet with indecisiveness of Fed members while the data move at a steady pace.
This has kept the dollar weak with any news or data to be released. In the past 24 hours, the euro decline to the area of 1.1750 which is seen to move down in general. The latest relevant news would be the continuation of the development of missiles from North Korea and the ongoing investigation on the accusation of Russian intervention in the US Presidential elections. These events would drive the dollar down.
For today, the speech of Draghi are expected during the London session but it is unlikely that he would discuss the monetary policy. Hence, traders should get ready for choppiness in trading this pair and be cautious in the liquidity of the pair.
The EUR/USD pair had been moving unsteadily in the past few days as the pair moves up and down with high volatility as the greenback moves without a specific direction in the present global tone. The dollar is appealing to be bought in the short term yet the market maybe thinking twice. Although, there are instances where the rally of the dollar where it is being sold at a faster rate.
This maintains the pressure in the dollar and which would be advantageous for the euro. What’s keeping the market optimistic for the dollar is a rate hike from the Fed in December although, the market does not strongly believe this. There are no specific indications yet with indecisiveness of Fed members while the data move at a steady pace.
This has kept the dollar weak with any news or data to be released. In the past 24 hours, the euro decline to the area of 1.1750 which is seen to move down in general. The latest relevant news would be the continuation of the development of missiles from North Korea and the ongoing investigation on the accusation of Russian intervention in the US Presidential elections. These events would drive the dollar down.
For today, the speech of Draghi are expected during the London session but it is unlikely that he would discuss the monetary policy. Hence, traders should get ready for choppiness in trading this pair and be cautious in the liquidity of the pair.
EUR/USD Technical Analysis: November 16, 2017
The euro against the U.S. dollar rallied higher during the beginning of the trade session for five succeeding days and being tested for a 1-month high. The market failed to maintain the current rate as the greenback gathered momentum amid a risk aversion situation. The U.S. data came out positively even better than anticipated. The retail sales data came in higher as well as the CPI report, which supported the U.S. yields and raised the rate of the dollar.
The EUR/USD climbed higher as it reaches close to the October high at the level of 1.1858. The exchange rate has reached once again the 50-day moving average at the level of 1.1786, which is currently the short-term support in the trend. Additional support was found close to the 10-day moving average at 1.1663. The impetus of the currency pair has been moving at a good pace as the Moving Average Convergence Divergence (MACD) index initiating a buy signal. This happened as the MACD line, which is the 12-day exponential moving average (EMA) minus the 26-day EMA, crossed higher than the MACD signal line found at the 9-day exponential moving average of the MACD line.
The euro against the U.S. dollar rallied higher during the beginning of the trade session for five succeeding days and being tested for a 1-month high. The market failed to maintain the current rate as the greenback gathered momentum amid a risk aversion situation. The U.S. data came out positively even better than anticipated. The retail sales data came in higher as well as the CPI report, which supported the U.S. yields and raised the rate of the dollar.
The EUR/USD climbed higher as it reaches close to the October high at the level of 1.1858. The exchange rate has reached once again the 50-day moving average at the level of 1.1786, which is currently the short-term support in the trend. Additional support was found close to the 10-day moving average at 1.1663. The impetus of the currency pair has been moving at a good pace as the Moving Average Convergence Divergence (MACD) index initiating a buy signal. This happened as the MACD line, which is the 12-day exponential moving average (EMA) minus the 26-day EMA, crossed higher than the MACD signal line found at the 9-day exponential moving average of the MACD line.
EUR/USD Technical Analysis: November 10, 2017
The single European currency paired with the U.S. dollar drove higher during Thursday session since the trade surplus in Germany has expanded, while the U.S. initial claims rebounded. Moreover, the German growth is predicted to overcome its previous outlook as the inflation is projected to remain muted capping the upside in the pair.
The EURUSD had moved upwards and pushed back on top of the 1.1625 level near around the 10-day moving average, which serves as a support in the short-term. Further support hits the 1.1550 weekly lows. A close over the 1.17 region could possibly negate the formation and triggered consolidation. The negative momentum was seen declining as the MACD (moving average convergence divergence) indicator is printing in the red, linked with an ascending trajectory that gives signs of consolidation.
The single European currency paired with the U.S. dollar drove higher during Thursday session since the trade surplus in Germany has expanded, while the U.S. initial claims rebounded. Moreover, the German growth is predicted to overcome its previous outlook as the inflation is projected to remain muted capping the upside in the pair.
The EURUSD had moved upwards and pushed back on top of the 1.1625 level near around the 10-day moving average, which serves as a support in the short-term. Further support hits the 1.1550 weekly lows. A close over the 1.17 region could possibly negate the formation and triggered consolidation. The negative momentum was seen declining as the MACD (moving average convergence divergence) indicator is printing in the red, linked with an ascending trajectory that gives signs of consolidation.
EUR/USD Technical Analysis: November 8, 2017
The EURUSD pair had a dipped again during the early trade behind weaker than expected production figures from Germany, the data also declined in September. The retail PMI in the European region dropped but retail sales further softened. Meanwhile, Chain Store Sales in the United States had bounced back in the recent week and the Loan Officers survey of U.S. presented standards easing.
Moreover, the euro-dollar pair drove lower and tested the 1.5050 level.The pair bounced back in the late session and failed to reacquire the 1.16 handle. The resistance can be found at 1.1722 region near the 20-day moving average. The prices resumed forming a head and shoulder reversal pattern with the neckline with a gapped at 1.1660 zone. The target support can be estimated by subtracting the neckline above the 1.1160 head. The momentum sustained its negative stance. The MACD histogram prints in the red, showing a descending trajectory towards a lower exchange rate.
The EURUSD pair had a dipped again during the early trade behind weaker than expected production figures from Germany, the data also declined in September. The retail PMI in the European region dropped but retail sales further softened. Meanwhile, Chain Store Sales in the United States had bounced back in the recent week and the Loan Officers survey of U.S. presented standards easing.
Moreover, the euro-dollar pair drove lower and tested the 1.5050 level.The pair bounced back in the late session and failed to reacquire the 1.16 handle. The resistance can be found at 1.1722 region near the 20-day moving average. The prices resumed forming a head and shoulder reversal pattern with the neckline with a gapped at 1.1660 zone. The target support can be estimated by subtracting the neckline above the 1.1160 head. The momentum sustained its negative stance. The MACD histogram prints in the red, showing a descending trajectory towards a lower exchange rate.
GBP/USD Technical Analysis: November 2, 2017
The British pound against the U.S. dollar dropped for a bit during the start of the Wednesday. Soon after, the price bounced up towards the 1.33 level. This pulled back from the said level and tried to reach the level of 1.3250, which has been the focus of sterling traders. Overall, the market should proceed to move higher as it was able to achieve reach a higher level prior to that. Choppiness will also persist in the market and the market will most likely attempt to reach the level higher than 1.35. The 1.3650 level will still be the main resistance level for long-term positions. However, if this area is surpassed, the market could further go up for a longer term.
For now, it is best to take advantage of buying in the lows. If the traders successfully break the level of 1.3250, an option is to wait as this could still go down towards the level of 1.32 and if it breaks down from there, it could further go down to 1.31. It would not be long before value seeking traders would come in cases of pullbacks since there is a strong bullish pressure.
There is a possibility for the uptrend to stop when it breaks lower than the level of 1.30. Hence, this makes small trades to be the ideal position in this trade. Positions should be put on hold until another successful breakout occurs above the level of 1.3650. From here on, this serves as an investment and would be determined through the patience of traders in the current situation.
The British pound against the U.S. dollar dropped for a bit during the start of the Wednesday. Soon after, the price bounced up towards the 1.33 level. This pulled back from the said level and tried to reach the level of 1.3250, which has been the focus of sterling traders. Overall, the market should proceed to move higher as it was able to achieve reach a higher level prior to that. Choppiness will also persist in the market and the market will most likely attempt to reach the level higher than 1.35. The 1.3650 level will still be the main resistance level for long-term positions. However, if this area is surpassed, the market could further go up for a longer term.
For now, it is best to take advantage of buying in the lows. If the traders successfully break the level of 1.3250, an option is to wait as this could still go down towards the level of 1.32 and if it breaks down from there, it could further go down to 1.31. It would not be long before value seeking traders would come in cases of pullbacks since there is a strong bullish pressure.
There is a possibility for the uptrend to stop when it breaks lower than the level of 1.30. Hence, this makes small trades to be the ideal position in this trade. Positions should be put on hold until another successful breakout occurs above the level of 1.3650. From here on, this serves as an investment and would be determined through the patience of traders in the current situation.
USD/CAD Fundamental Analysis: October 30, 2017
The U.S. dollar against the Canadian dollar closed the week high which makes the next week trading to be awaited by traders. Initially, the dollar has been moving steadily but the negative data the previous week pushed the pair to climb above towards 1.26 level with risks imposing the possibility for a breakout towards the level of 1.27.
The movement of the trend was driven by the retail sales data from the Canada which was published in the previous week that gave out a week data and has further escalate doubts to the BOC which has an inclination to increase its rates in short-term. The loonies may have declined but with the incoming Monetary policy statement from the BOC and press conference would open the possibility to become hawkish again. Although, they have been clear in the past that the central bank would not raise their rates for the remaining months in 2017 and presumably even in the early months of the following year. This lessens the hope for it and frustrated the market which resulted to a sell-off in the loonies.
On the other side, the dollar has held steady and was further pushed by a positive GDP data that may have raised the possibility of a rate hike in December. The pair moved towards the 1.28 level and even further towards 1.29 by the end of the week. However, the prices were affected by the reports on who will be the succeeding Fed Chair with chances to be Powell. At the same time, the oil prices soared which assisted in strengthening the Canadian dollar and drove the price to close for the week.
For this week, the Canadian dollar is anticipated to rally in the beginning which includes settlement of payments in oil in the present time of the year. In the latter part of the week, the labor data from the U.S. and Canada are to be released which would have an impact on the prices of the pair. Moreover, if the results of the data are good, the USD/CAD pair would rally and this would confirm the next Fed rate hike in December.
The U.S. dollar against the Canadian dollar closed the week high which makes the next week trading to be awaited by traders. Initially, the dollar has been moving steadily but the negative data the previous week pushed the pair to climb above towards 1.26 level with risks imposing the possibility for a breakout towards the level of 1.27.
The movement of the trend was driven by the retail sales data from the Canada which was published in the previous week that gave out a week data and has further escalate doubts to the BOC which has an inclination to increase its rates in short-term. The loonies may have declined but with the incoming Monetary policy statement from the BOC and press conference would open the possibility to become hawkish again. Although, they have been clear in the past that the central bank would not raise their rates for the remaining months in 2017 and presumably even in the early months of the following year. This lessens the hope for it and frustrated the market which resulted to a sell-off in the loonies.
On the other side, the dollar has held steady and was further pushed by a positive GDP data that may have raised the possibility of a rate hike in December. The pair moved towards the 1.28 level and even further towards 1.29 by the end of the week. However, the prices were affected by the reports on who will be the succeeding Fed Chair with chances to be Powell. At the same time, the oil prices soared which assisted in strengthening the Canadian dollar and drove the price to close for the week.
For this week, the Canadian dollar is anticipated to rally in the beginning which includes settlement of payments in oil in the present time of the year. In the latter part of the week, the labor data from the U.S. and Canada are to be released which would have an impact on the prices of the pair. Moreover, if the results of the data are good, the USD/CAD pair would rally and this would confirm the next Fed rate hike in December.
EUR/USD Fundamental Analysis: October 26, 2017
The EUR/USD climb higher due to various reasons including the result of the meeting of the ECB, the scheduled statement and the press conference later this day. The dollar also weakened across the market which pushed euro to move higher. Moreover, today is a significant day for the week.
The statement and announcement from the ECB are anticipated after the press conference of Draghi. As the market expects the release of the statement, the ECB would give their hints and plans related to QE tapering during the press conference. If they were able to give a definite plan and timeline, it would be a big help for the euro which is already presumed to rally after. The data from the eurozone gives out positive data and for this reason. Hence, the ECB does not have a reason to postpone the tapering but the pace of the program is still in question.
Draghi is exerting oneself not to appear hawkish in the past few months to avoid pushing the euro too high. It is yet to be known today is the policy is to be sustained. It will not be an easy task for him since the euro will most likely go up since there is no definite timeline of the QE tapering from the central bank. Other than that, the data from the U.S. in the past 24 hours has also been positive as the data on durable goods came out stronger than anticipated. As for the dollar, the GDP data would be significant which will be released from the U.S. tomorrow.
For today, consolidation is anticipated during the first half of the day while the traders are already preparing for the ECB release in the afternoon. Volatility will also be present in the trading following the announcement and the press conference. It is recommended to wait on the sidelines until everything has settled down.
The EUR/USD climb higher due to various reasons including the result of the meeting of the ECB, the scheduled statement and the press conference later this day. The dollar also weakened across the market which pushed euro to move higher. Moreover, today is a significant day for the week.
The statement and announcement from the ECB are anticipated after the press conference of Draghi. As the market expects the release of the statement, the ECB would give their hints and plans related to QE tapering during the press conference. If they were able to give a definite plan and timeline, it would be a big help for the euro which is already presumed to rally after. The data from the eurozone gives out positive data and for this reason. Hence, the ECB does not have a reason to postpone the tapering but the pace of the program is still in question.
Draghi is exerting oneself not to appear hawkish in the past few months to avoid pushing the euro too high. It is yet to be known today is the policy is to be sustained. It will not be an easy task for him since the euro will most likely go up since there is no definite timeline of the QE tapering from the central bank. Other than that, the data from the U.S. in the past 24 hours has also been positive as the data on durable goods came out stronger than anticipated. As for the dollar, the GDP data would be significant which will be released from the U.S. tomorrow.
For today, consolidation is anticipated during the first half of the day while the traders are already preparing for the ECB release in the afternoon. Volatility will also be present in the trading following the announcement and the press conference. It is recommended to wait on the sidelines until everything has settled down.
GBP/USD Fundamental Analysis: October 17, 2017
The British pound against the U.S. dollar has touched on the level of 1.3300 during the Monday session yesterday. It dropped along the trend and declined as the dollar gains strength during this period of time. The pair was not that influenced following the release of a mixed data from the U.S. on Friday. Although the happening on Monday did had a minor effect to the pair.
It is assumed that the current stand of the U.K. Prime Minister Theresa May would have an impact on the currency to the Brexit talks in Brussels but it did not go this way. Looking to the major reports, there will be several data scheduled to be publicized this week which includes the retail sales data and the inflation data. The market is about to position themselves considering the news on Monday which induced choppiness and weakened the market as seen yesterday.
Looking back on Friday session, it seems that the market has put aside the mixed data and rally at a higher price compared to almost all currencies. This was triggered but the reports where the candidate John Taylor was supported by U.S. President Trump to replace the current Fed Chair, Janet Yellen. He is recognized to be hawkish and has favored rate hikes at multiple events and if in case he was appointed, this would have a good effect to the U.S. dollar. Consequently, investors have begun positioning their assets which strengthened the dollar in the latter part of yesterday’s trading.
For today, the CPI inflation data from the UK as well as the scheduled speech of the BOE Governor Carney which are presumed to cause volatility in the GBP/USD pair. A breakout at the level of 1.33 would result in a surge of 200 pips and could work similarly when it reaches the level of 1.3200 and maintains the consolidation.
The British pound against the U.S. dollar has touched on the level of 1.3300 during the Monday session yesterday. It dropped along the trend and declined as the dollar gains strength during this period of time. The pair was not that influenced following the release of a mixed data from the U.S. on Friday. Although the happening on Monday did had a minor effect to the pair.
It is assumed that the current stand of the U.K. Prime Minister Theresa May would have an impact on the currency to the Brexit talks in Brussels but it did not go this way. Looking to the major reports, there will be several data scheduled to be publicized this week which includes the retail sales data and the inflation data. The market is about to position themselves considering the news on Monday which induced choppiness and weakened the market as seen yesterday.
Looking back on Friday session, it seems that the market has put aside the mixed data and rally at a higher price compared to almost all currencies. This was triggered but the reports where the candidate John Taylor was supported by U.S. President Trump to replace the current Fed Chair, Janet Yellen. He is recognized to be hawkish and has favored rate hikes at multiple events and if in case he was appointed, this would have a good effect to the U.S. dollar. Consequently, investors have begun positioning their assets which strengthened the dollar in the latter part of yesterday’s trading.
For today, the CPI inflation data from the UK as well as the scheduled speech of the BOE Governor Carney which are presumed to cause volatility in the GBP/USD pair. A breakout at the level of 1.33 would result in a surge of 200 pips and could work similarly when it reaches the level of 1.3200 and maintains the consolidation.
USD/CAD Technical Analysis: October 17, 2017
During the daytime trading on Monday, the American dollar traded sideways versus the Loonie dollar, followed by a break through the 1.25 handle. Eventually, the markets contained high volatility but the positive thing about this move is the reversed flow against the oil sector. The oil markets tend to rally as well as the U.S dollar but this appeared to be unusual which could give a negative sign for the CAD.
The 1.25 region below is projected to continue its attractiveness for the price but there is a possibility for the rally to resume according to the skeptical actions by the Canadian dollar.
A break over the 1.2250 mark even on the daily close will enable the market to keep on moving upwards or may be an attempt to reach the 1.2750 mark.
The markets would certainly be volatile due to the instability of oil industry along with some back and forth movements. Considering the massive volume of volatility, it is much preferred to gradually establish a position.
A break down underneath the 1.24 mark does not necessarily indicate a bearish tone again since dealing with the recent action seems difficult. While the markets would likely try to generate some kind of base. Moreover, the oil markets are moving nearer to the massive resistance which could further provide lots of bearish pressure towards the Loonies.
Take note that the Bank of Canada increased its interest rate and suddenly mentioned that the rate hikes should be considered as automatic. With this regard, the market appears to completely turn around against the CAD.
During the daytime trading on Monday, the American dollar traded sideways versus the Loonie dollar, followed by a break through the 1.25 handle. Eventually, the markets contained high volatility but the positive thing about this move is the reversed flow against the oil sector. The oil markets tend to rally as well as the U.S dollar but this appeared to be unusual which could give a negative sign for the CAD.
The 1.25 region below is projected to continue its attractiveness for the price but there is a possibility for the rally to resume according to the skeptical actions by the Canadian dollar.
A break over the 1.2250 mark even on the daily close will enable the market to keep on moving upwards or may be an attempt to reach the 1.2750 mark.
The markets would certainly be volatile due to the instability of oil industry along with some back and forth movements. Considering the massive volume of volatility, it is much preferred to gradually establish a position.
A break down underneath the 1.24 mark does not necessarily indicate a bearish tone again since dealing with the recent action seems difficult. While the markets would likely try to generate some kind of base. Moreover, the oil markets are moving nearer to the massive resistance which could further provide lots of bearish pressure towards the Loonies.
Take note that the Bank of Canada increased its interest rate and suddenly mentioned that the rate hikes should be considered as automatic. With this regard, the market appears to completely turn around against the CAD.
EUR/USD Fundamental Analysis: October 13, 2017
There is a consolidation in during the trading session of the EUR/USD pair as it fluctuates up and down for the day without specific trajectory. The Resistance area is found close to the 1.18880 and it cannot be determined yet the market will be able to break this area or its direction for short-term.
The price moved headed to the level mentioned and it seems that there will be a lot of selling to take place which would result in a minor correction. Although, there is choppiness present in the pair and it might be best to stay on the sidelines. The data from the U.S. particularly the PPI has no big impact on the movement of the pair and move sluggishly but steadfastly.
The dollar is moving behind with the NFP data came in weaker anticipated in the previous week. The FOMC minutes also gave a hawkish sentiment as awaited by the market. The trend is hinting for an uptrend of the EUR/USD pair to persist both for short and medium term while the question remains if the Federal Reserve will raise the rate for December and continue to affect the market.
Today, the market may get answers as the CPI data from the U.S. will be released later this day which put the Fed member at a worrisome state while dollar bulls are hoping for a positive output for today and keep open the possibility of a rate hike in December. Other than the CPI data, the retail sales data is also scheduled to be released for today which would greatly influence the short-term activity of the pair.
There is a consolidation in during the trading session of the EUR/USD pair as it fluctuates up and down for the day without specific trajectory. The Resistance area is found close to the 1.18880 and it cannot be determined yet the market will be able to break this area or its direction for short-term.
The price moved headed to the level mentioned and it seems that there will be a lot of selling to take place which would result in a minor correction. Although, there is choppiness present in the pair and it might be best to stay on the sidelines. The data from the U.S. particularly the PPI has no big impact on the movement of the pair and move sluggishly but steadfastly.
The dollar is moving behind with the NFP data came in weaker anticipated in the previous week. The FOMC minutes also gave a hawkish sentiment as awaited by the market. The trend is hinting for an uptrend of the EUR/USD pair to persist both for short and medium term while the question remains if the Federal Reserve will raise the rate for December and continue to affect the market.
Today, the market may get answers as the CPI data from the U.S. will be released later this day which put the Fed member at a worrisome state while dollar bulls are hoping for a positive output for today and keep open the possibility of a rate hike in December. Other than the CPI data, the retail sales data is also scheduled to be released for today which would greatly influence the short-term activity of the pair.
USD/JPY Technical Analysis: October 12, 2017
The U.S. dollar declined at the outset of Wednesday’s trading session, however, the bucks were able to find support on top the 112 handle to conduct a reversal, showing active existence.
The American dollar must keep on finding lots of support at 112 level because every pull back will provide plenty of support from that region. It is better when it offered some “floor” but a break down underneath there would offer a massive support below the 111 mark. With this, buyers will return to the market in a short period of time except when the Federal Reserve rejected the proposed interest rate hike.
The issue about rate hike has been the talk of the town for some time and maybe it’s time for the Fed to have at least some hints about their position regarding this matter, as the market really needs to see some progress or else they might lose their credibility. Many are intrigued on how many times the Fed will increase its rates which most participants would search within the Meeting Minutes. Hence, it will take some time to get a clear answer but this idea was already established within the marketplace and probably there is no any reason to conduct such rally.
The Bank of Japan remains to be soft which makes it reasonable to enter the 114.50 region. This level is the top of the longer-term consolidation. It appears that market imposes a “buy only” mode.
The U.S. dollar declined at the outset of Wednesday’s trading session, however, the bucks were able to find support on top the 112 handle to conduct a reversal, showing active existence.
The American dollar must keep on finding lots of support at 112 level because every pull back will provide plenty of support from that region. It is better when it offered some “floor” but a break down underneath there would offer a massive support below the 111 mark. With this, buyers will return to the market in a short period of time except when the Federal Reserve rejected the proposed interest rate hike.
The issue about rate hike has been the talk of the town for some time and maybe it’s time for the Fed to have at least some hints about their position regarding this matter, as the market really needs to see some progress or else they might lose their credibility. Many are intrigued on how many times the Fed will increase its rates which most participants would search within the Meeting Minutes. Hence, it will take some time to get a clear answer but this idea was already established within the marketplace and probably there is no any reason to conduct such rally.
The Bank of Japan remains to be soft which makes it reasonable to enter the 114.50 region. This level is the top of the longer-term consolidation. It appears that market imposes a “buy only” mode.
NZD/USD Technical Analysis: October 10, 2017
There is volatility present in trading the NZD/USD pair as it reached a lower limit in the opening on Monday where this will be reversed and fill the gap and proceed with a decline again. There is a possibility for this to reach the level of 0.70 where there will most likely be a support level. This area has been supportive in the past which was also resistive and anticipates volatility around that number. Take into consideration that the New Zealand is highly sensitive to commodities as well as the global risk appetite. It can be noted that the stock market is performing well although, there is less liquidity in the New Zealand dollar compared to other currencies. Hence, there will most likely be more volatility than other markets.
It underwent a downtrend in the past few days which signifies the continuation of a bearish pressure. It’s too early to say if the market will break lower than 0.70 region and if it does, this would not be a good sign. Hereinafter, the market will look for the 0.68 level below as the next target support level based on the long-term charts. Moreover, the Australian dollar is dropping which usually moves in the similar direction as the New Zealand dollar. It will either move up or be sold unless a breakout happens higher than the 0.7125 region and look at higher levels which is most likely above the 0.72 level. Volatility will not be surprising in this pair and seller will consider the riskier currencies in the present.
There is volatility present in trading the NZD/USD pair as it reached a lower limit in the opening on Monday where this will be reversed and fill the gap and proceed with a decline again. There is a possibility for this to reach the level of 0.70 where there will most likely be a support level. This area has been supportive in the past which was also resistive and anticipates volatility around that number. Take into consideration that the New Zealand is highly sensitive to commodities as well as the global risk appetite. It can be noted that the stock market is performing well although, there is less liquidity in the New Zealand dollar compared to other currencies. Hence, there will most likely be more volatility than other markets.
It underwent a downtrend in the past few days which signifies the continuation of a bearish pressure. It’s too early to say if the market will break lower than 0.70 region and if it does, this would not be a good sign. Hereinafter, the market will look for the 0.68 level below as the next target support level based on the long-term charts. Moreover, the Australian dollar is dropping which usually moves in the similar direction as the New Zealand dollar. It will either move up or be sold unless a breakout happens higher than the 0.7125 region and look at higher levels which is most likely above the 0.72 level. Volatility will not be surprising in this pair and seller will consider the riskier currencies in the present.
USD/JPY Technical Analysis: October 4, 2017
The U.S. dollar against the Japanese yen surged but then it declined towards the level of 113.25. It declined to the area of 112.75 with a bit of support. Hence, the market will attempt to rally from this level and resume the general uptrend recently. After some time, the price will further move up due to the risk of appetite from traders. Moreover, there is a possibility for the Federal Reserve to increase its rates or at least the be stricter with the monetary policy. Therefore, the market will move towards the 113.25 level then towards 114.50 and higher. The market will test the peak of the whole consolidation which sways to and fro. If the market successfully breaks higher than the 115 handle, the market would move much higher which is presumably towards 118 level.
If the price pullbacks from the said level, there would be more opportunities present to resume the value. It seems that the 112 will be largely supportive and the floor of consolidation will be seen at the level of 108. A pullback would open buying opportunities considering the support below. Eventually, both sellers and buyers will gain profits with the presence of volatility in the market if given sufficient time.
Notably, the market is influenced by the general stock market which is another indicator that must be monitored besides the S&P 500 and the DAX etc. Nevertheless, the stock market will climb higher as it is in a good condition.
The U.S. dollar against the Japanese yen surged but then it declined towards the level of 113.25. It declined to the area of 112.75 with a bit of support. Hence, the market will attempt to rally from this level and resume the general uptrend recently. After some time, the price will further move up due to the risk of appetite from traders. Moreover, there is a possibility for the Federal Reserve to increase its rates or at least the be stricter with the monetary policy. Therefore, the market will move towards the 113.25 level then towards 114.50 and higher. The market will test the peak of the whole consolidation which sways to and fro. If the market successfully breaks higher than the 115 handle, the market would move much higher which is presumably towards 118 level.
If the price pullbacks from the said level, there would be more opportunities present to resume the value. It seems that the 112 will be largely supportive and the floor of consolidation will be seen at the level of 108. A pullback would open buying opportunities considering the support below. Eventually, both sellers and buyers will gain profits with the presence of volatility in the market if given sufficient time.
Notably, the market is influenced by the general stock market which is another indicator that must be monitored besides the S&P 500 and the DAX etc. Nevertheless, the stock market will climb higher as it is in a good condition.
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Sterling chart is relevant to anyone related to flows in that income, thats quite alot of people. Even within bitcoin speculation you could sometimes buy sterling when bitcoin is bearish. Recently Sterling has been a possible breakout which makes it a viable alternative even to crypto speculators I figure. Its not always about dollar, dollar has been weak for most of 2017. Tides push both ways even if its lower :p
I would like Sterling to stay above 1.32 to hold previous lows and build for further gains, otherwise it might reset back to 1.29 which is a previous negative trend. It might then prove positive, sterling is very contrary but I have a hope still it could gain further. At start 2017 I said I think sterling will gain though I did not anticipate alot in total or year end just that the negative trend was exhausted then.
GBP/USD Fundamental Analysis: October 3, 2017
The British pound against the U.S. dollar pair had a high volatility at times. A few days back, the bulls were dominating the market and various resistance levels were surpassed. This was supported by a strong data from the U.K. and moves from the both the Bank of England and the government of U.K. which further supported the British pound. This kept the pound afloat amid the uncertainty brought by the Brexit process and pushed the currency even much higher.
Last week, the pound is undergoing correction at a faster rate in reaction to the good performance in the past few weeks. The U.K. prime minister is saying that she anticipates the Brexit will be settled after a few more years which is not what the market is expecting whilst majority expects to it materialize sooner. There are also speculations that the government spearheaded by the Prime minister Theresa May will eventually collapse.
On the other hand, the Bank of England is uncertain on deciding its next move. Moreover, it seems that the data from the U.K. is also sliding down in the past few weeks with the manufacturing data from the UK yesterday clearly depicting that. This resulted in a decline of the GBP/USD pair and dropped more than 120 pips during the day while the dollar rallied dominating the market.
For today, the construction PMI data from the UK will be released but there’ll be no major data coming from the U.S. The dollar will continue to rise but poses a threat to change the trend. At the same time, this will keep the GBP/USD under pressure for the day as the market wait for a larger data to come out later in the week.
The British pound against the U.S. dollar pair had a high volatility at times. A few days back, the bulls were dominating the market and various resistance levels were surpassed. This was supported by a strong data from the U.K. and moves from the both the Bank of England and the government of U.K. which further supported the British pound. This kept the pound afloat amid the uncertainty brought by the Brexit process and pushed the currency even much higher.
Last week, the pound is undergoing correction at a faster rate in reaction to the good performance in the past few weeks. The U.K. prime minister is saying that she anticipates the Brexit will be settled after a few more years which is not what the market is expecting whilst majority expects to it materialize sooner. There are also speculations that the government spearheaded by the Prime minister Theresa May will eventually collapse.
On the other hand, the Bank of England is uncertain on deciding its next move. Moreover, it seems that the data from the U.K. is also sliding down in the past few weeks with the manufacturing data from the UK yesterday clearly depicting that. This resulted in a decline of the GBP/USD pair and dropped more than 120 pips during the day while the dollar rallied dominating the market.
For today, the construction PMI data from the UK will be released but there’ll be no major data coming from the U.S. The dollar will continue to rise but poses a threat to change the trend. At the same time, this will keep the GBP/USD under pressure for the day as the market wait for a larger data to come out later in the week.
GBP/USD Fundamental Analysis: October 2, 2017
The GBP/USD pair showed some choppiness in the past couple of days without any definite direction. The British pound was able to recover in the previous weeks, considering the fact that it is one of the strongest currency in the market. However, the Sterling was also affected by the dollar buying, forcing the Cable pair for a correction over the 1.35 level to trade beneath the 1.34 region in the past few days. Previously, the pound-dollar pair failed to broke the 1.3420 area after certain attempts which the pair did during the USD weakening.
In case that this pattern keep on going, it would likely cause further weakness in the GBP and could push the pair downwards. Moreover, we are waiting for a bundle of data from the United States later this week, which could possibly manage the greenback well bid in the near-term. These events when combined would likely place the sterling in the pressured area in the short-term.
On one side, the sterling pound was supported by the Bank of England (BOE), as the bank did not lose the possibility for a rate hike despite the ongoing Brexit process. Primarily, the market expected that the BoE will remain quiet during this kind of precarious scenario but the most recent meeting of the UK central bank clearly announced that they will only take action if necessary. This has provided support to the GBP, considering that British government showed optimistic views regarding the retention of the free market access to the European Union.
Ultimately, the manufacturing PMI data from the United Kingdom and the United States which could probably enough volatility. While it is essential for the bulls to break 1.3420 mark in the near-term for the completion of an upward trend.
The GBP/USD pair showed some choppiness in the past couple of days without any definite direction. The British pound was able to recover in the previous weeks, considering the fact that it is one of the strongest currency in the market. However, the Sterling was also affected by the dollar buying, forcing the Cable pair for a correction over the 1.35 level to trade beneath the 1.34 region in the past few days. Previously, the pound-dollar pair failed to broke the 1.3420 area after certain attempts which the pair did during the USD weakening.
In case that this pattern keep on going, it would likely cause further weakness in the GBP and could push the pair downwards. Moreover, we are waiting for a bundle of data from the United States later this week, which could possibly manage the greenback well bid in the near-term. These events when combined would likely place the sterling in the pressured area in the short-term.
On one side, the sterling pound was supported by the Bank of England (BOE), as the bank did not lose the possibility for a rate hike despite the ongoing Brexit process. Primarily, the market expected that the BoE will remain quiet during this kind of precarious scenario but the most recent meeting of the UK central bank clearly announced that they will only take action if necessary. This has provided support to the GBP, considering that British government showed optimistic views regarding the retention of the free market access to the European Union.
Ultimately, the manufacturing PMI data from the United Kingdom and the United States which could probably enough volatility. While it is essential for the bulls to break 1.3420 mark in the near-term for the completion of an upward trend.
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GBP/USD Fundamental Analysis: September 27, 2017
The British pound has been competing with the surge of the dollar and a basket of currencies is already behind of the currency. The performance of the British currency has been better than other currencies as reflected in the past few weeks as it was supported by the Bank of England and the U.K. government which keeps it from collapsing.
The central bank supports the currency which allows the probability of a rate hike for the year. It seems that the bank would not disturb the economy with the ongoing process of Brexit that flows at a faster pace than in their last meeting. Although, they noted that they would interfere when necessary. It has improved the confidence of the U.K. economy which also pushes the currency at a slower but steady in the past few weeks.
The U.K. government aptly proceeds with the Brexit process through their parliament which helped the situation and supported the pound to rise stronger over time. Although the U.K. Prime Minister May lengthened the timeline for Brexit in the new few years. In the meantime, her approach implies that the both the nation and the investors trust the economy.
Today, there is no major economic news from the U.K. anticipated but the durable goods data will be released from the U.S. The greenback is presumed to hold the current rates because of the expected announcement in the afternoon from Trump to implement a new tax system. Consequently, the GBP/USD pair will be put under pressure.
The British pound has been competing with the surge of the dollar and a basket of currencies is already behind of the currency. The performance of the British currency has been better than other currencies as reflected in the past few weeks as it was supported by the Bank of England and the U.K. government which keeps it from collapsing.
The central bank supports the currency which allows the probability of a rate hike for the year. It seems that the bank would not disturb the economy with the ongoing process of Brexit that flows at a faster pace than in their last meeting. Although, they noted that they would interfere when necessary. It has improved the confidence of the U.K. economy which also pushes the currency at a slower but steady in the past few weeks.
The U.K. government aptly proceeds with the Brexit process through their parliament which helped the situation and supported the pound to rise stronger over time. Although the U.K. Prime Minister May lengthened the timeline for Brexit in the new few years. In the meantime, her approach implies that the both the nation and the investors trust the economy.
Today, there is no major economic news from the U.K. anticipated but the durable goods data will be released from the U.S. The greenback is presumed to hold the current rates because of the expected announcement in the afternoon from Trump to implement a new tax system. Consequently, the GBP/USD pair will be put under pressure.
Nice and informative.
But where is the BTC analysis ?
But where is the BTC analysis ?
USD/JPY Technical Analysis: September 25, 2017
The U.S. dollar against the Japanese yen declined during the Friday session as the market looks for support close to the 112 level. Hence, the market will be more appealing to buyers because of the Federal Reserve plans to reduce their balance sheet. This market is sensitive to the “risk on” factor added to the overall interest rate outlook for both central banks.
The Federal is way earlier than the Bank of Japan regarding the rise in interest rates that makes it highly probable to move to the upper channel. It may be not wise to short this pair for now. However, there are buying opportunities in pullbacks. On the weekly chart, there is a consolidation seen in the 108 level below and 114.50 level above for long term. The next target level will be 114.50 while a decline would offer value to the market. There might be some noise every now and then because of “risks off” incidents worldwide in consideration of the upsurge in the stock market.
Incremental increase and opening bigger positions are the best means of trading this pair in the background of an upward rally. If the market breaks over the 115 handle, it will lead to a “buy-and-hold” situation although this may take some time to happen. For now, buyers will predominate this pair for short-term to take advantage of the current situation.
The U.S. dollar against the Japanese yen declined during the Friday session as the market looks for support close to the 112 level. Hence, the market will be more appealing to buyers because of the Federal Reserve plans to reduce their balance sheet. This market is sensitive to the “risk on” factor added to the overall interest rate outlook for both central banks.
The Federal is way earlier than the Bank of Japan regarding the rise in interest rates that makes it highly probable to move to the upper channel. It may be not wise to short this pair for now. However, there are buying opportunities in pullbacks. On the weekly chart, there is a consolidation seen in the 108 level below and 114.50 level above for long term. The next target level will be 114.50 while a decline would offer value to the market. There might be some noise every now and then because of “risks off” incidents worldwide in consideration of the upsurge in the stock market.
Incremental increase and opening bigger positions are the best means of trading this pair in the background of an upward rally. If the market breaks over the 115 handle, it will lead to a “buy-and-hold” situation although this may take some time to happen. For now, buyers will predominate this pair for short-term to take advantage of the current situation.
Andrea's a bot.
EUR/USD Fundamental Analysis: September 22, 2017
The EUR/USD had a mixed performance during the daytime trading on Thursday, showing some choppiness without any hints on how to handle the dollar recovery. It happened after the FOMC meeting in which the Federal Reserve did not exclude chances for a rate increase in December and decided to begin the program to cut balance sheets. These combined announcements enabled to maintain the bid under the greenbacks, however, the trend of the EURUSD pair remained choppy to a certain extent.
Moreover, the single European currency weakened and moved below the 1.19 mark during the morning session, afterward, it started to recover and moved upwards since the US dollar weakened again over other selected currencies. With this, the euro was able to drive higher than the 1.19 level and currently trading in the 1.2950 area which continues to gain strength. It appeared that the pair would retrace its losses in the near term while the dollar bulls still having a tough time to generate strength recovery.
The USD failed to become well-composed in the past couple of days, as it loses its bullish gains. While the EUR successfully recovered due to the discussion about the continuous QE tapering in the market which is very visible to everyone.
In the near term, the euro is expected to remain in the bid as the pair test the range highs at 1.2070. The time for the dollar has not happened yet, therefore, bulls should be willing to wait for strong signals sent by the Fed regarding the rate hike, together with the ECB’s tapering talk and from that, we could expect for a reversal of fortune.
Ultimately, there are no major economic releases for today except the speech of ECB President Mario Draghi which is anticipated during London hours. According to forecasts, Draghi will tackle about the monetary policy while the market is still searching for some insights about tapering, however, the ECB president is known for his inclination not to touch the monetary policy during this kind of meetings. Furthermore, it remains unclear if this will brought an impact towards the euro-dollar pair.
The EUR/USD had a mixed performance during the daytime trading on Thursday, showing some choppiness without any hints on how to handle the dollar recovery. It happened after the FOMC meeting in which the Federal Reserve did not exclude chances for a rate increase in December and decided to begin the program to cut balance sheets. These combined announcements enabled to maintain the bid under the greenbacks, however, the trend of the EURUSD pair remained choppy to a certain extent.
Moreover, the single European currency weakened and moved below the 1.19 mark during the morning session, afterward, it started to recover and moved upwards since the US dollar weakened again over other selected currencies. With this, the euro was able to drive higher than the 1.19 level and currently trading in the 1.2950 area which continues to gain strength. It appeared that the pair would retrace its losses in the near term while the dollar bulls still having a tough time to generate strength recovery.
The USD failed to become well-composed in the past couple of days, as it loses its bullish gains. While the EUR successfully recovered due to the discussion about the continuous QE tapering in the market which is very visible to everyone.
In the near term, the euro is expected to remain in the bid as the pair test the range highs at 1.2070. The time for the dollar has not happened yet, therefore, bulls should be willing to wait for strong signals sent by the Fed regarding the rate hike, together with the ECB’s tapering talk and from that, we could expect for a reversal of fortune.
Ultimately, there are no major economic releases for today except the speech of ECB President Mario Draghi which is anticipated during London hours. According to forecasts, Draghi will tackle about the monetary policy while the market is still searching for some insights about tapering, however, the ECB president is known for his inclination not to touch the monetary policy during this kind of meetings. Furthermore, it remains unclear if this will brought an impact towards the euro-dollar pair.
EUR/USD Technical Analysis: September 21, 2017
The EURUSD trailed downwards during Wednesday's trading session after the release of Federal Research report as the central bank maintained interest rates. Moreover, the Fed Reserve announced that they progress with the quantitative tightening with an amount of 600 billion approximately, which is related to balance sheet reduction every year.
The FOMC also mentioned another rate increase scheduled presumably in December. Among 16 Fed members, there are 11 who voted for a hike this year. According to forecasts made by the officials, it might extend until next year to attain the neutral rate level of Fed funds. The Federal Reserve System gradually approach the issue about the three-time hike in 2019 and 2020 and the long-term rate was lowered down to 2.75%, with the previously 3.0%.
The euro-dollar pair weakened after the dollar made some progress along with the increase of yields. The support lies at 1.1834 region around the lows last week while resistance can be found at 1.2092 level near the previous highs.
The RSI (relative strength index) which functions as a momentum oscillator measuring the performance of the momentum, whether it will accelerate or decelerate. The indicator broke the support which shows an ascending negative momentum. On the other hand, the MACD histogram prints in the red, reflecting a downward trajectory that leads to a lower exchange rate.
The EURUSD trailed downwards during Wednesday's trading session after the release of Federal Research report as the central bank maintained interest rates. Moreover, the Fed Reserve announced that they progress with the quantitative tightening with an amount of 600 billion approximately, which is related to balance sheet reduction every year.
The FOMC also mentioned another rate increase scheduled presumably in December. Among 16 Fed members, there are 11 who voted for a hike this year. According to forecasts made by the officials, it might extend until next year to attain the neutral rate level of Fed funds. The Federal Reserve System gradually approach the issue about the three-time hike in 2019 and 2020 and the long-term rate was lowered down to 2.75%, with the previously 3.0%.
The euro-dollar pair weakened after the dollar made some progress along with the increase of yields. The support lies at 1.1834 region around the lows last week while resistance can be found at 1.2092 level near the previous highs.
The RSI (relative strength index) which functions as a momentum oscillator measuring the performance of the momentum, whether it will accelerate or decelerate. The indicator broke the support which shows an ascending negative momentum. On the other hand, the MACD histogram prints in the red, reflecting a downward trajectory that leads to a lower exchange rate.
Hello forum members!
Good day!
I am Andrea, an official representative of ForexMart.
Me and my colleagues will provide you daily forex analysis on this thread to help you increase your trading efficiency as well as maximizing your profit. Suggestions, comments or opinions are all welcome. We will also be glad to attend to your inquiries.
We hope to hear from you soon!
Thank you!
Best regards,
ForexMart
Andrea, thank you for sharing your analyses. I have one really important question: do you have any kind of metrics that show how often your analyses and predictions point investors in the right direction? I see that your guidance is more general, pointing out technical price patterns rather than making specific price predictions, which is good. But do you know how often those price patterns can be traded for a profit? Good day!
I am Andrea, an official representative of ForexMart.
Me and my colleagues will provide you daily forex analysis on this thread to help you increase your trading efficiency as well as maximizing your profit. Suggestions, comments or opinions are all welcome. We will also be glad to attend to your inquiries.
We hope to hear from you soon!
Thank you!
Best regards,
ForexMart
EUR/USD Technical Analysis: September 20, 2017
The currency pair EUR/USD was able to make some slight improvement during the trading session yesterday, however, the pair resumed the consolidation prior the meeting of the Fed Reserve scheduled on Thursday.
The German Zew Investor confidence had increased which buoyed the euro-dollar pair, but the attention of the traders are centered towards the Federal Reserve. When they mentioned about quantitative tightening during the meeting, it would likely that the U.S. import prices will rise more than 2% year over year.
The EURUSD remained to sit on the 10-day moving average, and continued consolidating before the Fed meeting tomorrow. The pair’s support touched the 1.1834 level around the lows last week. On one side, the resistance entered the 1.2092 region near the highs of the previous week.
Moreover, prices seem to generate a bull flag formation serves a pause that refreshes upwards. The negative momentum is moving downwards while the MACD (moving average convergence divergence) index is printing in the red showing an ascending trajectory that reflects for further consolidation.
The currency pair EUR/USD was able to make some slight improvement during the trading session yesterday, however, the pair resumed the consolidation prior the meeting of the Fed Reserve scheduled on Thursday.
The German Zew Investor confidence had increased which buoyed the euro-dollar pair, but the attention of the traders are centered towards the Federal Reserve. When they mentioned about quantitative tightening during the meeting, it would likely that the U.S. import prices will rise more than 2% year over year.
The EURUSD remained to sit on the 10-day moving average, and continued consolidating before the Fed meeting tomorrow. The pair’s support touched the 1.1834 level around the lows last week. On one side, the resistance entered the 1.2092 region near the highs of the previous week.
Moreover, prices seem to generate a bull flag formation serves a pause that refreshes upwards. The negative momentum is moving downwards while the MACD (moving average convergence divergence) index is printing in the red showing an ascending trajectory that reflects for further consolidation.
What does any of this have to do with bitcoin?
I think on certain exchanges (not 100% sure) you can use bitcoin to participate in forex trading. It's just a way to invest your cash. Since this is the economics/speculation section, it makes sense for OP to be posting speculations on the market. After all, we're all here to make money right?
What does any of this have to do with bitcoin?
I think on certain exchanges (not 100% sure) you can use bitcoin to participate in forex trading. It's just a way to invest your cash. Since this is the economics/speculation section, it makes sense for OP to be posting speculations on the market. After all, we're all here to make money right?
What does any of this have to do with bitcoin?
EUR/USD Technical Analysis: September 19, 2017
The euro-dollar pair remained almost unchanged as it stayed in the level 1.1953 under the 10-day moving average. On the other hand, the inflation came in at 1.5% which is lower the 2% target of the European Central Bank. Now, traders’ attention was turned to the Fed Reserve meeting on September 19 and 20, but there is no any expectations for the meeting. Moreover, the Fed had mentioned some ways in managing the bond purchase program. Contrarily, the Bundesbank assumes that growth will slow down in the second half of the fiscal year.
The EURUSD consolidated prior the meeting of the Federal Reserve which is scheduled tomorrow. The pair’s support hit the 1.1834 mark which is seen around the lows of the previous week. The resistance highlighted the region 1.2092 around the highs last week.
The momentum maintained a negative stance while the MACD (moving average convergence divergence) indicator prints in the red with a descending trajectory, pointing to lower exchange rate.
The euro-dollar pair remained almost unchanged as it stayed in the level 1.1953 under the 10-day moving average. On the other hand, the inflation came in at 1.5% which is lower the 2% target of the European Central Bank. Now, traders’ attention was turned to the Fed Reserve meeting on September 19 and 20, but there is no any expectations for the meeting. Moreover, the Fed had mentioned some ways in managing the bond purchase program. Contrarily, the Bundesbank assumes that growth will slow down in the second half of the fiscal year.
The EURUSD consolidated prior the meeting of the Federal Reserve which is scheduled tomorrow. The pair’s support hit the 1.1834 mark which is seen around the lows of the previous week. The resistance highlighted the region 1.2092 around the highs last week.
The momentum maintained a negative stance while the MACD (moving average convergence divergence) indicator prints in the red with a descending trajectory, pointing to lower exchange rate.
GBP/JPY Technical Analysis: September 15, 2017
The British pound moves sideways during the beginning of the Thursday session. This surged to the upper channel after the Bank of England hinted that there will be interest rate hikes soon.
Hence, the market will most likely proceed with buying on the lows and it may not be wise to short this pair for now. For long-term, the pair will try to reach the 150 handle and above. Selling will be difficult for this pair and the 145-level or lower will continue to support the market which gives a bit of a bullish pressure.
The British pound moves sideways during the beginning of the Thursday session. This surged to the upper channel after the Bank of England hinted that there will be interest rate hikes soon.
Hence, the market will most likely proceed with buying on the lows and it may not be wise to short this pair for now. For long-term, the pair will try to reach the 150 handle and above. Selling will be difficult for this pair and the 145-level or lower will continue to support the market which gives a bit of a bullish pressure.
USD/JPY Technical Analysis: September 14, 2017
The U.S. dollar versus the Japanese yen rallied to the upper channel during the Wednesday session and there is an unabating buying pressure. The discussion on tax reform from the United States further worsens the situation since it came out earlier than expected. On the other hand, this is favorable for the greenback. This makes more U.S. companies more aggressive and in all likelihood boost the U.S. economy. On this condition, it is presumed that buyers will enter the market and attain the level of 111. If the market successfully breaks out, there is a potential for the price to move much higher.
The U.S. dollar versus the Japanese yen rallied to the upper channel during the Wednesday session and there is an unabating buying pressure. The discussion on tax reform from the United States further worsens the situation since it came out earlier than expected. On the other hand, this is favorable for the greenback. This makes more U.S. companies more aggressive and in all likelihood boost the U.S. economy. On this condition, it is presumed that buyers will enter the market and attain the level of 111. If the market successfully breaks out, there is a potential for the price to move much higher.
EUR/USD Technical Analysis: September 13, 2017
European yields increased again together with the stabilization of risk appetite and revival of the global stock market that keeps buoying the EURUSD pair.
Eurozone peripherals had performed better while the European Central Bank assures for a cautious move as it prepares to ease off the stimulator. Meanwhile, the chain store sales of the United States declined after the destructive hurricanes Harvey and Irma that are predicted to put pressure on the national figures for this week.
The German economic ministry anticipates slow growth in the H2, which implies that employment growth might curb sentiment.
The euro-dollar pair formed another Doji day showing the opening and closing level were at the same point reflecting an indecision. The support highlighted the 1.1937 level close to the 10-day moving average. While the resistance came in at 1.2092 near the September peaks.
The momentum is in the neutral position and the MACD (moving average convergence divergence) indicator prints around the zero index level linked with a flat trajectory that shows some consolidation. Moreover, the RSI (relative strength index) known to be a momentum oscillator that assesses the increasing or decreasing momentum. The index prints a reading of 59 in the middle of the neutral range, which also indicates further consolidation.
European yields increased again together with the stabilization of risk appetite and revival of the global stock market that keeps buoying the EURUSD pair.
Eurozone peripherals had performed better while the European Central Bank assures for a cautious move as it prepares to ease off the stimulator. Meanwhile, the chain store sales of the United States declined after the destructive hurricanes Harvey and Irma that are predicted to put pressure on the national figures for this week.
The German economic ministry anticipates slow growth in the H2, which implies that employment growth might curb sentiment.
The euro-dollar pair formed another Doji day showing the opening and closing level were at the same point reflecting an indecision. The support highlighted the 1.1937 level close to the 10-day moving average. While the resistance came in at 1.2092 near the September peaks.
The momentum is in the neutral position and the MACD (moving average convergence divergence) indicator prints around the zero index level linked with a flat trajectory that shows some consolidation. Moreover, the RSI (relative strength index) known to be a momentum oscillator that assesses the increasing or decreasing momentum. The index prints a reading of 59 in the middle of the neutral range, which also indicates further consolidation.
USD/JPY Technical Analysis: September 11, 2017
The U.S. dollar against the Japanese yen had a significant breakdown during the Friday session. Nevertheless, the market proceeds to move downward and a breakdown lower than 108.0 level gives a negative outlook. Hence, this could lead to a further decline and even lower than the 105 level. This gives a very pessimistic outlook and the concept of the Federal Reserve in not raising its interest rates for short-term would persist to have an effect on the market. It is next to monitor the equities which would also influence the next movement of the pair.
The U.S. dollar against the Japanese yen had a significant breakdown during the Friday session. Nevertheless, the market proceeds to move downward and a breakdown lower than 108.0 level gives a negative outlook. Hence, this could lead to a further decline and even lower than the 105 level. This gives a very pessimistic outlook and the concept of the Federal Reserve in not raising its interest rates for short-term would persist to have an effect on the market. It is next to monitor the equities which would also influence the next movement of the pair.
USD/JPY Technical Analysis: September 8, 2017
The US dollar weakened versus the safe-haven Japanese Yen amid Thursday’s session and tested the 108.50 handle. This level appeared to be an interesting area because it is the bottom of the longer-term consolidation. A close under this region of the daily candle will push the market downwards through the next major support hurdle, which is the level of 105 below.
Otherwise, when the market rebounded from that point, then it is possible to return to the 109.50 mark. It will take some time for the market to declare their targets and we are currently at a very significant region on the longer-term charts.
The US dollar weakened versus the safe-haven Japanese Yen amid Thursday’s session and tested the 108.50 handle. This level appeared to be an interesting area because it is the bottom of the longer-term consolidation. A close under this region of the daily candle will push the market downwards through the next major support hurdle, which is the level of 105 below.
Otherwise, when the market rebounded from that point, then it is possible to return to the 109.50 mark. It will take some time for the market to declare their targets and we are currently at a very significant region on the longer-term charts.
USD/JPY Fundamental Analysis: September 7, 2017
The U.S. dollar against the Japan yen was traded lower during the beginning of Wednesday session. Yet, the market has bounced off and almost kept the rate as it reached low levels at 108.441. For the week, the trading situation gives a similar outlook after the missile launch by North Korea over Japan.
The USD/JPY pair was seen positioning at 108.724 and declined by 0.078 or -0.07% at 10.21 GMT. The USD/JPY pair closed the session at 0.884 down by -0.81% on Tuesday.
The Forex pair dropped with the current tension with North Korea as well as the rhetorics from Fed speakers. Traders are getting anxious prior to the monetary policy decision of the European Central Bank on Thursday.
Investors keep on reacting to the happenings in the North Korea and the price movement of the safe haven assets. Moreover, the stock market compellingly suggests that traders are concerned with the minimal progress towards the lowering the threat of a nuclear war.
Traders have been anxious with the issue on North Korea especially since the next nuclear test will happen on Sunday. Across the globe, this act was being contradicted as the price movement in the stock market where more investors are being disappointed since there is lack of progress in controlling the situation.
The USD/JPY pair will most likely continue trading with the influence of the U.S. Treasury yields and opinion of investors. The price action of the U.S. Treasury yields which is supported by the economic data and Fed speakers. Reactions of investors are influenced by the geopolitical events about North Korea.
Some minor U.S. data such as Trade Balance, Final Services PMI and the Fed Beige Book and the major report on the ISM Non-Manufacturing PMI will be released on Wednesday. The anticipated figure will be 55.8 and increased from 53.9.
The whole report may not be that relevant and move the pair. Also, the investors will center its attention on North Korea since this is unpredictable. Fears of uncertainty are reflected for the first time with investors who are taking off setting positions in the stock a market and place the money in safe haven assets. Traders should monitor for another stock sell-off for today.
The U.S. dollar against the Japan yen was traded lower during the beginning of Wednesday session. Yet, the market has bounced off and almost kept the rate as it reached low levels at 108.441. For the week, the trading situation gives a similar outlook after the missile launch by North Korea over Japan.
The USD/JPY pair was seen positioning at 108.724 and declined by 0.078 or -0.07% at 10.21 GMT. The USD/JPY pair closed the session at 0.884 down by -0.81% on Tuesday.
The Forex pair dropped with the current tension with North Korea as well as the rhetorics from Fed speakers. Traders are getting anxious prior to the monetary policy decision of the European Central Bank on Thursday.
Investors keep on reacting to the happenings in the North Korea and the price movement of the safe haven assets. Moreover, the stock market compellingly suggests that traders are concerned with the minimal progress towards the lowering the threat of a nuclear war.
Traders have been anxious with the issue on North Korea especially since the next nuclear test will happen on Sunday. Across the globe, this act was being contradicted as the price movement in the stock market where more investors are being disappointed since there is lack of progress in controlling the situation.
The USD/JPY pair will most likely continue trading with the influence of the U.S. Treasury yields and opinion of investors. The price action of the U.S. Treasury yields which is supported by the economic data and Fed speakers. Reactions of investors are influenced by the geopolitical events about North Korea.
Some minor U.S. data such as Trade Balance, Final Services PMI and the Fed Beige Book and the major report on the ISM Non-Manufacturing PMI will be released on Wednesday. The anticipated figure will be 55.8 and increased from 53.9.
The whole report may not be that relevant and move the pair. Also, the investors will center its attention on North Korea since this is unpredictable. Fears of uncertainty are reflected for the first time with investors who are taking off setting positions in the stock a market and place the money in safe haven assets. Traders should monitor for another stock sell-off for today.
good thing that there's a group here which also willing to share their knowledge about forex though I'm not really into it and I don't have any concrete
foundation to this type of investment I'm always open for some new adventure and I'm willing to learn how the market go. hope you and your team
will continue sharing your knowledge and for us also to take advantage of this information. more luck guys..
foundation to this type of investment I'm always open for some new adventure and I'm willing to learn how the market go. hope you and your team
will continue sharing your knowledge and for us also to take advantage of this information. more luck guys..
GBP/USD Fundamental Analysis: September 6, 2017
The British pound soared to 1.30 and labeled as the strongest currency for the day during Tuesday session. Currently, it moves to the highs of the range in the 1.3030 region and put a risk for a breakout. It seems to be not performing well in the past whole week but this was supported by the expected data from the U.K. and the weakened dollar which has assisted the recovery of the GBP/USD pair.
The center of attention has been the U.S. dollar majority of the day since the U.S. market opened after the long weekend as well as rhetorics from various speakers of the Federal Reserve. The market anticipates what will happen to the U.S. economy and when will be the next rate hike. It seems that they do not really think about it. It is mainly dovish on both issues but this did not appeal to investors which resulted in another round of selling the greenback.
In turn, this has supported the GBP/USD pair to ascend towards 1.3000 level and the 1.3030 is now an important resistance region. If it successfully breaks through the said region in a clean manner, the pair is anticipated to move towards 1.3250 region for short term. Yet, there is a possibility for this to happen when the dollar further weakened.
There is no major economic news from the U.K. for this day. The dollar will once again be the center of attention and if the market can recover for short-term. It seems that the dollar index is at a crucial stage where it could decline or bounce up from this point. It is ideal for traders to be careful and determine its next move whether it will go down or up prior to placing orders.
The British pound soared to 1.30 and labeled as the strongest currency for the day during Tuesday session. Currently, it moves to the highs of the range in the 1.3030 region and put a risk for a breakout. It seems to be not performing well in the past whole week but this was supported by the expected data from the U.K. and the weakened dollar which has assisted the recovery of the GBP/USD pair.
The center of attention has been the U.S. dollar majority of the day since the U.S. market opened after the long weekend as well as rhetorics from various speakers of the Federal Reserve. The market anticipates what will happen to the U.S. economy and when will be the next rate hike. It seems that they do not really think about it. It is mainly dovish on both issues but this did not appeal to investors which resulted in another round of selling the greenback.
In turn, this has supported the GBP/USD pair to ascend towards 1.3000 level and the 1.3030 is now an important resistance region. If it successfully breaks through the said region in a clean manner, the pair is anticipated to move towards 1.3250 region for short term. Yet, there is a possibility for this to happen when the dollar further weakened.
There is no major economic news from the U.K. for this day. The dollar will once again be the center of attention and if the market can recover for short-term. It seems that the dollar index is at a crucial stage where it could decline or bounce up from this point. It is ideal for traders to be careful and determine its next move whether it will go down or up prior to placing orders.
Primarily, the sterling moved sideways on Monday, however, drove downwards to find some support and in order to make a rebound. The United States is currently in a holiday to celebrate the Labor Day, hence, the trading volume will be heightened during the European session.
Moreover, the market is having some conflicting pressure while players lack confidence about the possible increase of the Fed interest rates for this year. However, there are various concerns regarding the British exit from the European Union.
It is possible that the market will continue its choppiness which suggests to better trade in small positions. We should search for some pullback while the market should push lower touching the 1.2850 in the longer term. The 1.30 region appeared to be really resistive but when the 1.3050 area will be broken, buyers would likely take the driver’s seat once again.
It is expected that the market will keep on having some noise, but there is also a possibility that the market is seeking for clarity which is hard to look for because of the increasing noise in the markets.
It should be noted that the liquidity will not raise until the following week, considering that majority of the traders are not present due to the holiday.
Hello forum members!
Good day!
I am Andrea, an official representative of ForexMart.
Me and my colleagues will provide you daily forex analysis on this thread to help you increase your trading efficiency as well as maximizing your profit. Suggestions, comments or opinions are all welcome. We will also be glad to attend to your inquiries.
We hope to hear from you soon!
Thank you!
Best regards,
ForexMart
Good day!
I am Andrea, an official representative of ForexMart.
Me and my colleagues will provide you daily forex analysis on this thread to help you increase your trading efficiency as well as maximizing your profit. Suggestions, comments or opinions are all welcome. We will also be glad to attend to your inquiries.
We hope to hear from you soon!
Thank you!
Best regards,
ForexMart
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