Daily Market Analysis from ForexMart

[Luis ForexMart]

GBP/USD Technical Analysis: October 18, 2016

Due to the prevailing matters of contention against the hard Brexit, the pound established its spot around the pressured area. The neutral position demonstrated last week had maintained its bearings. The cable expanded towards a lower direction amid the opening on Monday. The price had plunged downwards to the 1.2182 to 1.2153. Subsequent to the expansion is the extension of the pair’s losses, sterling and greens hold the 1.2140-1.2200 in a tight range. According to the 1-hour chart, the GBP seems bearish within the 50-EMA that impeded its progress. Moving averages slightly recovered consequent to the recession it suffered. Resistance stopped in the 1.2200 region, support resided in the 1.2100 level. MACD upsurge however, it fell in the negative area and implied weakening for sellers. RSI consolidated in the oversold status. It is expected that the GBPUSD will remain neutral.

[Luis ForexMart]

EUR/USD Technical Analysis: October 18,2016

Yesterday, the dollar made a significant increase reaching its 7-month high in opposition to remaining main currencies. The greenbacks expanded its gains while presented positive US data at the same time. This supported the prospects of the investors concerning the Fed hike this year..

The same day when the euro made a reversal and essentially restore its losses. After the sales of assets on Friday follows the current improvement of some bearish investors earnings. The buyers were able to drove the greens and euro through the resistance level of 1.1000. On the other hand, price moderately cut-down and bullish investors failed to recover. It can be viewed that the EUR attempted to arrive at the 50-EMA of 1.1000. The 50-EMA made a roadblock hence dropping the price to a lower direction. Moving averages are descending. Resistance take the 1.1000 region, support is drawn in the 1.0950 level. Though the MACD lied in the negative territory, it reinforced seller’s strength. RSI indicator wavers in the oversold area. EUR/USD still had the capacity to multiply its profits attaining the 1.1050 mark.

[Luis ForexMart]

EUR/JPY Technical Analysis: October 18, 2016

The EUR/JPY pair has recently experienced a trading high of 116.30, a long shot from September’s monthly low of 112.00 points. The currency pair backtracked from the Fibonacci levels of 23.6 and 38.2 last week after support levels went up to 1114.00-114.12 due to the 20-50 DMA, as well as the Fibonacci levels of 50.0. A breach beyond this level might cause a drop at 113.00 and 112.00, which is in line with the weekly and monthly time frames for the currency pair.

The EUR will be reliant on this coming Thursday’s events, with the European Central Bank seemingly uncertain on whether to increase stimulus to an already expanded policy due to increasing inflation rates and an increase in momentum levels as suggested by growth indicators. However, the ECB still has to remedy the decrease in supply as a means to keep its current program in line and make way for another program, albeit at a reduced level.

Market players are expecting a particularly uneventful ECB statement due to speculations of an unchanged policy and ECB merely repeating its calls for politicians to improve structural reforms in order to boost economic growth in the European Union and to increase inflation in the region.

[Luis ForexMart]

USD/CAD Fundamental Analysis: October 18, 2016

The CAD traded within its previous range after the USD and commodity prices had a slow start for the week. Fed representatives have kept traders and market players on their toes in light of the expected interest rate hike in December, but the US fundamental factors are shifting the focus on the release of the inflation data in the coming days.

The Canadian Foreign Security purchases data increased by 12.74 billion, with the input of foreign funds in the country marking the eighth consecutive month of positive net investments.

For the USD/CAD pair, the pair decreased by 0.08% during the last trading session, with the currency pair now trading at 1.3129 prior to the expected rate statement release from the Bank of Canada on Wednesday. The CAD decreased in value due to the decrease in crude oil prices last Monday, and the CAD will be dependent on the BoC’s rate statement on Wednesday, with the BoC expected to become more dovish in spite of little chances of an interest rate cut within the week, mostly due to the expected interest rate hike of the Federal Reserve later this year.

[Luis ForexMart]

USD/JPY Fundamental Analysis: October 18, 2016


The USD decreased its value against the JPY during Monday’s trading session after the release of US economic data which turned out to be lower than expected, on top of investor reaction to comments from Fed Chairwoman Yellen last Friday. The Empire State manufacturing index was released last Monday, with the index dropping by -6.80 in October, faring worse than the previous data of -2.0 and falling below the expected +1.1 estimate.

Meanwhile, the data for Industrial Production also fell below its expected reading of 0.3% since the data came out at 0.1%, but was better than the September release of -0.5%. The Capacity Utilization Rate data came out at 75.4%, going a bit higher than the previous data release of 75.3% but still lower than the expected reading of 75.6%.The Federal Reserve’s Vice Chairman recently warned that low interest rates might increase the vulnerability of the economy due to impending recessions.

For the last trading session, the USD/JPY pair traded at 103.779 points, going down by -0.37% or 0.387 points. Market players initially reacted to Yellen’s statement the Fed might wait for inflation rates to go beyond its expected range before inducing an increase in interest rates.

[Luis ForexMart]

USD/CNH Fundamental Analysis: October 21, 2016

The pair USD/CNH is in struggle as the People’s Bank of China is about to release its quandary where its decision and its expected consequences is fixed and cannot be change. It is pressured towards the 6.75 level because of USD gains overnight. Traders are expected to contemplate and not rush on its actions to scrutinize the government-owned banks who are said to be on bidding. However, if depreciation continues towards the year-end it should go higher to counteract the pressure. Plus, the short-term pressure escalates with high demand to repay debt or extend operations globally that induces corporate demand for dollars.

[Luis ForexMart]

AUD/USD Fundamental Analysis: October 21, 2016

Yesterday, the Australian dollar slumped low against the U.S. dollar because of the release of Domestic Employment data that showed below expectations while U.S. dollar rallied

The European Central Bank remained undecided on their monetary policies taking into consideration the Quantitative Easing would be extended this year-end. The borrowing remained to be zero and is far from changing soon. Hence, the prices for short-term are set to be lowered. The central bank’s decision would propel U.S. dollars higher and would have an impact on the Australian dollar.

The front-end bond yield in Australia also declined along with the depreciation of Aussie. Investors and traders expect that the Reserve Bank of Australia would not rush its decision in monetary policies, instead to analyze the status of the economy for a longer period of time.

Currently, the trend for the pair is Bearish with the prices being dragged down by frustrating job reports. Although there has been slight increase for the job reports that lessen the impact of the it to the currency but it was still not enough to affect the trend and go higher. When the physiological levels react the .7620 to .7593 levels, this may become a problem for sellers.

[Luis ForexMart]

EUR/JPY Fundamental Analysis: October 21, 2016

The European Central Bank (ECB) suspend their stimulus program worth as much as $1.7 trillion. It coincidentally scheduled with Fed rate hike with the ECB being dovish with their decisions. Concerns of market centers to Draghi’s decision has left the market afloat and waiting. Although there are still other possibilities that could happen with the awaited ECB’s decision on 2017, market sees this as a Dovish stance that is also supported by the price activity of Euro. There has been two ECB meetings and the results were the same pushing the boundaries beyond the Resistance levels.

Today, Bank of Japan’s governor, Kuroda, is scheduled to speak which will determine short-term trends and give hints regarding the changes in monetary policies and interest rates. The Core CPi and Retail Sales report of Canada will be released today.

[Luis ForexMart]

EUR/USD Technical Analysis: October 21, 2016

The euro and greenbacks continue to exist on its previous position since the ECB remains its stance as well. Furthermore, the price preserved a bearish trend yesterday. The pair also keep its existence within the recent low of the day.

The euro made a moderate tone up as it headed to the mark 1.100 before the US opening. The progress in the 1-hour chart showed that the 50-EMA restrained the reversal movement of euro. The 50, 100 and 200 Moving averages keep going through the bearish pattern. Resistance ended at 1.1000 region, support comes in at 1.0950.

MACD contained a stable situation conforming to the seller’s strength. RSI oscillator consolidated around the negative zone.

[Luis ForexMart]

AUD/USD Technical Analysis: October 21, 2016


The emanation of mixed data with concerns to the unemployment rate affected the AUD which shifted through the bottom versus to USD. The price happen to cross some losses significantly as it was reported yesterday. The pair landed over the 0.7730 level but an adjustment promptly occurred and caused the price to make a steep decline.

The AUDUSD captured the 0.7690 level and attempted to break the 0.7650 level in a downward position. In addition, the pair intervenes the 50-EMA as seen in the 1-hour chart while the price reached the 100-EMA. The stimulus descended then faded encompassing the daily lows.

Moreover, the 50-EMA shifted on a lower stance, the 100 and 200 EMAs aimed to reach north.

MACD softened and implied buyer’s weak position as well. RSI plunged out of the overbought territory and switched towards the negative level.