Daily Market Analysis from ForexMart

[Andrea ForexMart]

USD/JPY Technical Analysis: May 29, 2017


The U.S. dollar against the Japanese yen declined during the Friday session. It reached the lowest level of 110.80. If it bounced back, this will signal a bullish trend but this would not be easy to attain as there is high-risk appetite especially for this pair. The 110 level gives off a massive support but is the pair breaks lower, the next level would be at 108 region at a quicker pace because there is a still remaining gap that has not been filled.


In the long-term, this pair will most likely go higher although it may take some time since the 112.50 is strongly resistive. A break higher than this region would be beneficial for scalpers to take advantage of bulls interested in the U.S. dollar.


Traders of this pair should monitor the S&P 500 index as this would have a big influence to the pair. If the index rises, this pair follows. Moreover, the chances for a Fed rate hike puts a bullish pressure for the pair. If it did not take place, it might be a problem for the pair although it is most likely that this would happen with its stature at stake.


Pullbacks every now and then offer long-term opportunities but for short-term, this gives off bearish volatility/ This could persist for some time especially with the major events concerning geopolitical problems occurring from Europe and the U.S.


Overall, the pair moves in an uptrend from 110.23 level and a decline from 112.13 will indicate a correction. It is expected to rise again following the correction towards the 113.50 level. The near-term resistance is found at 111.70 and a break to this level would mean a continuation of the uptrend. On the other hand, the support region is positioned at 110.80 and 110.23 and a break from these levels would push the price back again from 114.36 level.

 

[Andrea ForexMart]

AUD/USD Technical Analysis: May 31, 2017


The Australian currency had slightly decline amid Tuesday trades, however, met a support around 0.74 mark to bounce back and climb upwards. An ability to cut through above the 0.7450 region is highly important. The resumption of the bullish pressure will prompt the market to advanced towards the area above 0.75, which is previously a significant resistance.


The rally is expected to run out within a short period of time, in case the gold surge considering a “risk on” rally. Therefore, the market has to continue trend upwards.


The gold markets appeared to be a safe place to get involved with. When gold was bought as a fear trade there is a tendency that Aussie will not follow. Nevertheless, a positive feeling towards the markets will help the AUDUSD to attempt a higher move.


The AUD is starting to gain strength, but the Kiwi appeared to be much stronger as it drives forward. Forecast says, the favor should remain in the seat of the New Zealand dollar, but there are predictions that both commodity currencies will go through similar directions.


A break down under the 0.74 range would indicate a negative signal and caused the Australian dollar to plunged lower.


Alternatively, the pair is projected to experience volatility, yet this is not new to this pair since the market always run in circles. Volatility awaits upon moving forward, for that reason you should look out on your stop losses.

 

[Andrea ForexMart]

GBP/JPY Technical Analysis: May 31, 2017


The national currency of Britain weakened amid Tuesday trading, however, it had a significant rebound from the area 141.80 reaching the 143 handle. A break over the daily highs would direct the market in a higher position, as it may reach 144 level without plenty of issues.


Generally, the Sterling holds a significant amount of reversal throughout the day since the Cable further exhibited active signs. This could probably be a correction for the oversold condition where the GBP sees itself, after the election polling it became tighter exceeding its expectations in the past. Moreover, the figures decreased inclined with the conservative administration. Having said that, the uptrend will resume eventually, hence buying is highly preferred on the gap above the highest.


Remember that the pairs relative to Japanese yen appeared to very sensitive to risk. This could be considered as one of the most delicate pairs, the simultaneous rally of the stock market is a big help that could move 100 pips in an instant.


Either way, a cut through underneath 142.50 region would allow the market to touch 142 handle once again.


The daily candle begins to display a bullish stance which signals that buyers will return, nevertheless, it could be best that you’ll wait for the market to reveal hints to initiate the buying, as a means to safeguard your account against an extensive volatility.

 

[Andrea ForexMart]

EUR/GBP Technical Analysis: June 1, 2017


The Euro against the British pound was highly volatile during the Wednesday session. It is being in tested in the upper channel and a pullback was seen reaching the opening for the day. The market is attempting to gain sufficient impetus to break higher than the 0.88 level followed by 0.90 level.


In the long-term, this pair seems to be much stronger although there is a lot of noise found in the upper channel causing the choppiness of the market. The market might move slower especially with various major reports from the European Union and Britain. Same goes for Brussels and London which will be the center of attention and this market can be easily affected by these outside forces.


It won’t be long before this pair rallies upward and it is advisable to either buy after a breakout or be more careful and wait on the sidelines. Selling might be more difficult for this pair neither placing a short-term orde. However, a move lower than the 0.86 handle is a good thing although it seems that the buyers dominate participants but might now last in the current condition of the market.

 

[Andrea ForexMart]

AUD/USD Technical Analysis: June 2, 2017


The Australian dollar against the U.S. dollar did not have a good trading session on Thursday. It breaks at the 0.74 level followed by a rebound towards the 0.7420 region. Since then, the market declined and broke to a fresh new low. Currently, the pair is depreciating and makes it more vulnerable to further decline especially since the jobs data will come out today.


If the jobs data met the expectations, then this will most likely push the currency lower towards the 0.73 handle. However, if the pair moves in the upper channel then this would open opportunities to buy this pair especially if it breaks higher than the 0.7475 region. Although, we cannot be certain of now if this would occur since the market is still undecided on which direction to choose.


The next target for this pair is 0.73 level with the tendency to move forward which makes it more favorable for selling. The market already anticipates this and it will be good to follow so.

It seems that the currency is having a difficult time while the New Zealand dollar is performing better. Even so, traders still opt for the Aussie but traders should be cautious in buying this pair in the current low levels.


Overall the pair is sold-off by traders and it is reasonable to move along with this move. However, if this pair opens for the 0.73 region, this will push the price to lower levels immediately.

 

[Andrea ForexMart]

NZD/USD Technical Analysis: June 2, 2017


The Kiwi dollar declined in the day during Thursday trade while testing the mark 0.7050. Despite the choppiness of the market, the New Zealand currency have the possibility to beat the Australian dollar. It does not mean that the market will establish an optimistic stance, rather it will become more resilient. The market will search the level below 0.70 because this holds a nice large figure, however, the release of US employment figures on Friday involves plenty of noise.

The market will found the resistance on top of the 0.71 handle and the rally will soon fade away because the mentioned region seems resistive. As indicated on the higher level of the chart, some type of channel are trying to develop.


The NZDUSD is not easy to deal with because it is the least liquid among major pair and when the announcement is made, it would likely to have a violent move. With this, it is suggested to steer clear from the commodity-linked pair as this could lead you to pain if you did not take proper caution. The ability to break down under 0.70 region would break down significantly. It signals a longer-term indicator, either way, it could toggle continually moving a gradual ascending grind.


As the market maintain a choppy stance, lots of opportunities were also offered.

 

[Andrea ForexMart]

GBP/USD Technical Analysis: June 5, 2017


The GBPUSD declined on Friday and face through some volatility as the U.S. employment figures released with a lower than anticipated results.


The market now appeared to hover below the 1.29 handle considered as a major level. The ability to break on top of the said region would lead the market towards 1.3050 area which provided a significant resistance.


Buying on the dips remain to be the most suitable way in playing the market beneath 1.2850 that has been offering an amount of support. Meanwhile, a break over 1.29 range would trigger a continuous higher movement. In the long term, buyers will still get involved and show further strength sooner or later.


Headline risk could still remain since concerns regarding British exit keep forging ahead. This might influence the sterling in any moment. Ultimately, the pair can find a bottom upon staying beyond the level 1.2750.


Moreover, the built-in bid resumes in regards to the GBP. An attempt to move ahead the 1.3450 handle should be done. However, lots of issues and concerns surrounds the British economy, therefore it may take some time to reach the target. Selling is ruled out except when we cut through down the 1.2750 area.

 

[Andrea ForexMart]

EUR/USD Technical Analysis: June 5, 2017


The EURUSD moved through an upward direction on Friday after the release of weak data on employment report. The U.S yields further weakened as prices ascended at a faster pace compared with the European bonds. This made the euro lure attraction of investors prior the ECB meeting scheduled next week.


The European producer price manifested stronger figures, beating expectation which paved the way for a higher rate on the pair. The pair had broken out on the back of a bull flag formation which serves as a pause to refresh higher.


The prices increased by 1.1282 region just shy of 1.1299 close to November 8 highs. The next resistance target is found at the mark 1.1365 near the highs of August 2016. The support reached 1.1206 area around the 10-day moving average.


The momentum came in neutral while the MACD histogram printed nearby the zero-index level whereas the index appeared to be in a flat trajectory suggesting for a consolidation.

 

[Andrea ForexMart]

NZD/USD Technical Analysis: June 6, 2017


The New Zealand broke in the lower channel during the Monday session. Later, the trend bounced off to fill the gap then declined again. There is massive support found in the 0.71 below which triggered the market to rise again as it reached the former break level. Currently, the market is attempting to move higher as it gains momentum to reach the 0.7150 region which would hint a bullish sentiment.


The market could also retreat from this level towards the 0.71 handle once more. Overall, there will be high volatility and persist for some time in the market since the New Zealand dollar is relative to commodities market which always changes. Hence, the currency is expected to be traded with a choppy environment.


Buying on the lows is advisable for this pair and is not surprising for them to return as the trend moves in a downtrend. However, shorting this pair may not be the best move. If the price breaks lower than the 0.71 handle, the next move would be to go downward toward the 0.7050 level.


Nevertheless, the market will be very choppy driven by geopolitical risks and in consideration of its sensitivity opting the U.S. dollars as a safety currency while the kiwi being the riskier one in this pair. Volatility is also anticipated to persist in either direction it goes.

 

[Andrea ForexMart]

GBP/JPY Technical Analysis: June 6, 2017


The British pound against the Japanese yen broke on the lower side during the Monday session which was upturned indicating bullishness in the trend. It is directed towards the 143 level and higher up that fills the gap. There is a robust resistance seen in the previous trades that makes the reversal unexpected. However, if the price is set higher, this would persist to an elevated level pointed to the 144 region.


It is anticipated to have volatility for this pair regardless of the next move since the market is in a “risk on” or “risk off” sentiment. Moreover, the British elections worsen the situation as it affected the British currency that brings unpredictability in the market until the election on Thursday. Other global economic concerns will also affect the trend.


Volatility is the current focal point of the market and if it gaps more than the 143 region, more buying opportunities will come out for the market. However, if the election polls showed conservatives leading in Britain, this push this pair aimed higher with chances to break higher than the 144 region then shift towards the 145 handle.


Traders should not expect that trading this pair would be easy that makes trades on small positions to be ideal for this pair or one could opt to wait in the sidelines as GBP/JPY is one of the pairs risky to position in the market.

 

[Andrea ForexMart]

NZD/USD Technical Analysis: June 7, 2017


The NZDUSD rallied amid trades on Tuesday and broke the level on top of 0.7150 smoothly. The Kiwi dollar continued to search for buyers on dips and tend to handle some pullback as an opportunity to increase rate.


The market tried to touch the region above 0.72, en route 0.75 afterwards. As shown in the chart, the area around 0.71 handle provides a lot of support and regarded to be the floor of the market in the near-term uptrend. The commodity space continues to weigh on the market and the NZD seems to be the “barometer” towards the overall sentiment of futures trading. Watch closely for the commodity because it could possibly show the way.


It could be a good move to buy dips moving forward because it suits the current status of the New Zealand currency. Selling remains impossible as far as we breach under the 0.71 mark. A successful break down prompts the market to reach the range below 0.7050 which is very supportive previously, along with the 0.70 region. In any case, the market remains to be volatile, however, the moving averages came in reliable, particularly the 48-hour MA shown in green color, hence it should offer further buying opportunities.


The volatility driven market persists, but the late impulsivity indicates that buyers begin to develop more confident as it moves ahead. Moreover, the dips will provide value which is an advantage to market participants.

 

[Andrea ForexMart]

GBP/USD Technical Analysis: June 7, 2017


The GBPUSD had attempted to rally yesterday, however, retreated to the level 1.2950 to return underneath the 1.29 handle. In the past few sessions, the market appeared to have a little bit of overall bullish pressure, waiting for the results of UK elections expected tomorrow. In this case, the market will probably experience choppiness and unprepared to conduct a significant move yet. Short-term volatility is predicted along with some choppy spots but a general ascending momentum should also be anticipated. It does not mean that a pull cannot be accomplished, it only implies that longer-term charts and the range below 1.2750 should offer massive support that will surely lure the attention of the majority of market participants.


After the session on Friday, the long-term outlook for the pair shall be available as it could be very difficult from this moment and the next.


Buying the dips remains to be the best option for the Cable but the dips showed to be somewhat steep. You should have got small positions as of now and after the election results in order to acquire lesser damage that might suddenly arise.


Markets have lots of speculation regarding the election decision, therefore a cool level head should be maintained as this is crucial for the following sessions.


In the longer-term, the pair might break the 1.3050 mark as it allows the market move higher freely, or maybe reach its long-term target found at the region 1.3450.

 

[Andrea ForexMart]

EUR/USD Technical Analysis: June 7, 2017


The EURUSD aimed to make a rally during Tuesday session but look for a strong resistance around 1.1280 region to make a reversal. Then, rebounded through the 1.1240 mark.

Meanwhile, the market remains to be bullish and attempted to front run the monetary policy statement of the European Central Bank.


The ability to break out in the upside enable the market to move towards the area on top of 1.13. The 1.15 range is the top of the latest consolidation seen in the EUR/USD for the past years.


Moreover, the market might experience difficulty in breaking above the mentioned range, however, series of attempt were made to get through the area and identify its capacity to hold on.

Buying in the dips resumes progressing forward despite anticipated noise.


As the Britain will leave the European Union, there is a chance that some statements will weigh against Euro’s value. Either way, the interest rate hikes from the United States may catch more attention.


A breakout to the upside is possible while the 1.12 market must be the “floor” in this market.

 

[Andrea ForexMart]

USD/CAD Technical Analysis: June 8, 2017



The USDCAD go through sideways amid Wednesday’s trades and attempted to push downwards reaching 1.3425 handle. After that, the market had broken out to the upside on the back of releasing the figures of Crude Oil Inventories. The number showed that oil demand declined again while the greenbacks broke to upside and collapse over the 1.35 handle.

With this, the commodity-linked pair is preparing to resume the longer-term uptrend with anticipation that buying dips will progress.



The Canadian dollar is expected to struggle as demand continued to be sluggish relative to the crude oil market. A break on top of 1.36 handle prompts the market to move forward near 1.40 region eventually. As buying dips in the near-term will persist, selling the market seems uninteresting. The U.S. dollar has to extend its gains versus the loonie because the oil keep on dragging the currency in the longer-term



A breakdown or pull back cause buyers to missed the trend during the announcement.

The position on the lower level showed plenty of choppiness, hence, down there might have the same degree of irregularity because support will be provided for pullbacks. Therefore, expect a lot of order flow accompanied by “market memory found in the lower areas.

 

[Andrea ForexMart]

EUR/USD Technical Analysis: June 9, 2017



The EURUSD drove downwards as the European Central Bank (ECB) decided to maintain the interest rates on a steady pace coupled with dropped easing bias. This further took a neutral position with regards the way they will see the monetary policy.



The schedule for quantitative easing remained unchanged while rates should be expected to retain its recent levels as reflected in the transcripts.



The pair moved near the support shown at 1.1220 mark that lies around the 10-day moving average which currently serves as the resistance in the near-term. Further resistance sits at 1.1285 region close to the weekly highs. An ascending sloping trendline is found at 1.1140 area. Meanwhile, the momentum turned towards the negative territory and the moving average convergence divergence (MACD) produced a crossover signal to sell prompted by the intersection of the spread under the 9-day moving average. The histogram shifted from positive en route the negative grounds and confirmed a sell signal.

 

[Andrea ForexMart]

GBP/USD Technical Analysis: June 13, 2017



The British currency has an insignificant performance during Monday opening as the Europeans came back from behind. There is a gapped in the level 1.2750 and broke down towards the 1.2650 region. The market persists to show a massive bullish pressure considering that uncertainties wrought from the election will probably influence the sterling in general.

With this, the rallies could possibly provide some selling opportunities, however, a break on top of 1.28 region signals a bullish stance. And the market will move near above the 1.29 handle. Volatility is highly expected because of the trends influenced by headlines.



The sell rallies will continue on short-term charts which give indicators of exhaustion.

In case the bearish pressure remains, the market will come under 1.25 handle and keep on struggling because of indecisions on the United Kingdom along with the interest rate hikes to be implemented by the United States later this year



There are few reasons that GBPUSD will keep to struggle and decline. A slice over 1.28 handle will favor for a buying position.

 

[Andrea ForexMart]

NZD/USD Technical Analysis: June 15, 2017


The Kiwi had rallied during Tuesday’s trading session and broke on top of the 0.73 region. This indicates a bullish sentiment which requires a follow-through, however, the Fed Reserve might have other reaction about this matter.

The level below 0.72 is expected to offer a massive support and buyers will be involved eventually. Pullbacks may have appeared to be of value which could possibly the most suitable way to take part in a highly impulsive session. But it does not directly says that the market is going to be intense within 0.73 area and it only needs a lot of patience in order to obtain profit from this type of market. There is a tendency that market will grind higher sooner or later.

Furthermore, in the long-term uptrend show signs that it is best to buy dips for it will provide better entry plus enabling you to establish a larger position.

The market trailed through the region above 0.75 as this is significant on the longer-term charge. Ability to make a gap on top will make an ascending trend but we should reach the target first.

Volatility remains in the market but in case that the US central bank showed at least some concern in the economy will convince traders to bet that there will be a lesser possibility for an interest rate hike in the future.

 

[Andrea ForexMart]

NZD/USD Technical Analysis: June 15, 2017



The Kiwi had rallied during Tuesday’s trading session and broke on top of the 0.73 region. This indicates a bullish sentiment which requires a follow-through, however, the Fed Reserve might have other reaction about this matter.



The level below 0.72 is expected to offer a massive support and buyers will be involved eventually. Pullbacks may have appeared to be of value which could possibly the most suitable way to take part in a highly impulsive session. But it does not directly says that the market is going to be intense within 0.73 area and it only needs a lot of patience in order to obtain profit from this type of market. There is a tendency that market will grind higher sooner or later.

Furthermore, in the long-term uptrend show signs that it is best to buy dips for it will provide better entry plus enabling you to establish a larger position.



The market trailed through the region above 0.75 as this is significant on the longer-term charge. Ability to make a gap on top will make an ascending trend but we should reach the target first.



Volatility remains in the market but in case that the US central bank showed at least some concern in the economy will convince traders to bet that there will be a lesser possibility for an interest rate hike in the future.

 

[Andrea ForexMart]

USD/JPY Technical Analysis: June 16, 2017


The U.S. dollar against the Japanese yen moved unsteadily during Thursday session followed by a rally as the market sees a “risk on” environment. For now, it looks like the market will remain unpredictable and the market reaction in the overall risk appetite will be the main driver of the trend.

Traders should take into consideration the other Yen pairings which will most likely move in the similar direction. Currently. The market aims for 111 level which has been formerly resistive. It seems that the market broke the psychological level and their next target would be around 112 and 112.50 levels or higher.

Pullbacks may open opportunity for buyers as the 110 level is reached which has been a significant psychological level in the past. It seems that the pullbacks would be extended longer which gives more value for the pair. This is beneficial to gain momentum in the pair while everyone is waiting for a better value.

There has been a sell-off for the pair as the market reacted to the Federal Reserve’s decision. It came out different than expected as the Fed lean to the hawkish side which consequently strengthens the U.S. dollar which moves almost always contrary to the Japanese yen as one of the highly sensitive pairs in the market.

 

[Andrea ForexMart]

NZD/USD Technical Analysis: June 23, 2017



The Kiwi dollar break up to the upside amid Thursday trading hours and cut through over the region 0.7250, touching higher up to 0.7270 area, however, retreated to 0.7250 mark by which buyers have seen to make its entry towards the marketplace.


As the 24-hour exponential moving average still offer support causing the New Zealand to attract the attention of the buyers but pull back is required in order to meet those buyers.

The target is the level above 0.73 and when the commodity sector could at least make some recovery, it could further support the NZD.


Having said that, a consolidation will form between the 0.72 and 0.73 levels. Basically, we are on top of the “fair value” which indicates that buyers are nearly able to direct the market.

Ability to break on top of 0.73 will enable the market to crept higher and it may take some time to do so.


Moreover, the national currency of New Zealand Dollar appeared to be the strongest among other commodity currencies which have the possibility to keep going.


As a buyer, we recognize the breakdown under 0.72 area which is negative and has the potential to revise the overall projections.


The 0.75 level remains to be the target In the longer-term, even though it may take quite some time, the longer-term traders still believe that it will happen soon. With this, the market persists in buying the dips.