Daily Market Analysis from ForexMart

[Luis ForexMart]

USD/JPY Technical Analysis: December 7, 2016

The USD/JPY pair maintained a neutral stance during Tuesday’s session since there was no important economic news release from Japan. However, the US released a handful of minor economic reports, namely the Factory Orders data and Trade Balance data. The currency pair was mainly bullish yesterday and was able to trade within its lower levels after remaining within its ascending direction. The USD was unable to extend new gains as opposed to the JPY but the USD continued to struggle, and the currency pair exhibited consolidations at 114.800 points and spent the trading sessions trading within the 114.00 range. The pricing of the USD/JPY tested and reverted off from the 50 EMA in its 4-hour chart, while the moving averages remained within the bullish slope within the same timeframe. Resistance levels for the USD/JPY are expected to be at 114.00, while support levels for the currency pair are expected to come in at 113.00.

The MACD indicators for the pair remained its previous level, indicating buyer strength. Meanwhile, RSI indicators remained within neutral territory. The overall stance for the USD/JPY pair is in the bullish territory, with the pair expected to hit resistance levels at 115.00. If the pair fails to reach this level, then its price could retreat to 113.00 and could even go lower at 112.00, which could loosen the buying pressure for the pair.

[Luis ForexMart]

USD/CAD Fundamental Analysis: December 7, 2016

The USD/CAD consolidated and tailed the direction of oil prices during the previous trading session, with the Canadian dollar slightly easing in value after oil prices displayed corrections during the trading session. The Canadian Trade Balance data also came out yesterday and exceeded initial market expectations which helped augment the value of the CAD. The currency pair mainly consolidated on both sides of the 1.3300 trading range.

The market is expecting the Federal Reserve meeting this coming mid-December, and although the Fed rate hike this December is basically minted within the market, market players are now more interested with regards to hints and guidances on the Federal Reserve’s rate hikes next year. The USD/CAD pair is expected to undergo an increase in pressure a few days prior to the Fed meeting since crude oil prices are a major factor in this issue, and another bullish stance is expected for oil prices in the coming days.

For today’s trading session, Canada is set to release a rate statement from the Bank of Canada, where the BOC is expected to maintain its rates and could give traders more insight with regards to the central bank’s stance with regards to the overall feel of the Canadian economy. Traders are expecting some hints with regards to the BOC’s views on future rate cut backs in the coming months, particularly next year.

[Luis ForexMart]

GBP/USD Fundamental Analysis: December 7, 2016

The GBP/USD pair mostly consolidated and ranged on both sides of 1.2700 points since there was no major economic news release from the UK which could compel the pair to move, and this is why the currency pair had a muted session yesterday. However, since the Federal Reserve’s meeting is expected to induce volatility in the financial market, especially since the Fed is expected to announce its much-anticipated rate hike in this particular meeting. Market players are also expecting to receive hints with regards to the central bank’s future rate hikes in order to determine the USD’s direction in the short run. However, if the meeting fails to give out hints with regards to the bank’s future moves, then this could induce a weakness in the US dollar.

Meanwhile, the UK is currently bearing the brunt of the Brexit process, which is expected to last for a couple of years since this will most likely involve heated discussions with leaders from all over the eurozone in order to send out a warning to other EU countries wanting to go in the same direction as the UK.

For today’s trading session, the UK Manufacturing Production data is set to be released during the European session, and market players are expecting the data to come out as positive. If the data does come out as highly positive, then traders can expect the pair to hit 1.2800 points. Otherwise, the pair could continue consolidating on both sides of the 1.2700 region.

[Luis ForexMart]

USD/CAD Technical Analysis: December 8, 2016


The USD/CAD intended to carry out a market rally yesterday, however, it failed to move higher and reached the 1.32 level downwards. The aforesaid region has been the uptrend line of the pair which previously has become an important area also for the USDCAD. A strong support from a candle is needed in order to take a long position. In case that an oil price rollback arises, it could further help the pair to push through.

A breakdown scenario will lead the pair to close down from the 1.32 handle which coincides the market’s possible declivity.

[Luis ForexMart]

EUR/USD Fundamental Analysis: December 8, 2016


Despite of the lively U.S session, the EUR/USD is seen consolidating and develop a wide-ranging day on Wednesday. Meanwhile, the Asian and London hours seems a little gloomy following the softening of the dollar which affected the overall market. This further pushed the pair towards the higher level of 1.0750. During the New York trading session, yields had a dipped which caused the weakening of the USD. As the pair failed to broke the 1.0680, bulls enliven and try to lead the pair to a higher position.

Currently, the pair is resting and continued to consolidate as it waits for the ECB’s news announcement with the press and the ECB rate to be held within this day. Small talks were present in the market as they discuss the possible procedure and fixed date to be imposed by EU central bank in stopping the QE program. In spite of the fact that this monetary policy seems hard to stop in an instant, by which the market questions for the bank’s plan in handling Quantitative Easing programme. Moreover, Draghi’s statement are anticipated as to how he will manage the QE.

[Luis ForexMart]

NZD/USD Technical Analysis: D ecember 8, 2016

The NZD decreased in value as dairy prices surged, while the RBNZ governor gave no particular hints with regards to the New Zealand economy in his latest parliament speech. The NZD/USD pair maintained its neutral stance during the previous trading session, with the NZD attempting to correct during Wednesday following a slight selloff last Tuesday. The currency pair encountered strong support levels at the 0.7100 range and was able to reclaim the majority of its losses. However, during the London trading session, the recovery streak of the NZD was stopped at the 0.7140 region.

The value of the NZD/USD pair increase and eventually tested the 200 EMA in the pair’s 4-hour chart, with the 100 and 200 EMAs remained neutral and the 50 EMA is currently exhibiting an upward trend. The resistance levels for the NZD/USD pair is at 0.7150 points, while support levels for the currency pair is expected to come in at 0.7100 points. The MACD indicator for the currency pair surged, signalling an increase in buyer strength. The pair’s RSI indicator also increased and confirmed the recent surge in buyer strength.

If the NZD/USD manages to go through 0.7150, then this could induce the pair to reach further resistance levels at 0.7200 points. The currency pair could also possibly hit 0.7250 if the pair breaks through 0.7200 points.

[Luis ForexMart]

EUR/USD Technical Analysis: December 9, 2016


The policy interest rates of the European Central Bank kept unchanged while the QE program extended is extended until April 2017. The single currency jumped from the 1.0850 region and made a dip in the 1.0650 amid American session and mixed trading on Thursday. Meanwhile, the pair successfully broke the area of 1.0750 during the annual trading as it continued to expand its vertical slope. The pair gained strength in the opening of the EU hours and tested the 1.0800 level. The buyers are able to push the price higher towards the 1.0850 handle. Upon the opening of the NY session, the EURUSD suddenly exhibited a reversal.

The price further rebounded in the 200-EMA as shown in the 4-hour chart, while the 50-EMA pass over in the 100-EMA with an uptrend. Both 200 and 100-day moving averages still exhibited a bearish slope, seeing the 50-EMA to rise.

The resistance touched the 1.0650 mark, support sits around the 1.0600. The MACD indicator grew less, favoring strength for the sellers. The RSI bounce back through the overbought position and shifted southwards.

The medium term and positive sentiment are expected to be neutral upon a correction below the 1.0700. The pair will probably drop towards 1.0550.

[Luis ForexMart]

GBP/USD Technical Analysis: December 9, 2016

The housing price balance in U.K is in upbeat for the month of November, this data had supported the British currency. Likewise, the pound was able to strengthen against its American counterpart and persist to recover. The market structure maintained its bullish place on Thursday. Moreover, the sterling heightened as it was able to regain its few losses acquired earlier this week.

During the Asian session, the pair turns away from the 1.2600 level. Afterward, in the EU opening, the GBPUSD tested the 1.2700 region and remain to take its ascending trajectory. The traders find the level of 1.2700 seems tough to make a clear break. Prices bounced back and headed south and faded its daily gains.

According to in the 4-hour chart, the GBP bounced off through the 50-EMA. All moving averages preserved its bullish bias. Resistance is positioned in the 1.2600 region, support touched the 1.2500. The MACD histogram lies in the central point. An entry in the negative zone will indicate strength for the sellers. The positive area is the buyers hope to dominate the overall market. RSI shifted downwards.

[Luis ForexMart]

USD/CAD Technical Analysis: December 9, 2016

Despite of the positive data from the New Housing Price Index and Building Permits, the loonie still moved downwards, seeing the American dollar to gain additional strength. Yesterday, the pair headed southwards. After the USDCAD broke the 1.3260 level, the greenbacks expanded its losses through the 1.3190. The price procured few pips and stop on top of the level as it continued to initiate a consolidation phase. As indicated in the 4-hour chart, the price establish its position below the moving averages. The 50 and 100 EMAs pass over the 200-EMA in a downward direction. The 200-day moving averages is neutral as the 50 and 100 directed lower. Current resistances is seen in the 1.3260, support is at 1.3190 level.

MACD histogram is trading in the downside of the market. RSI remains oversold. It is expected for the market to be bullish when the pair consolidated over the 1.3250 handle.

[Luis ForexMart]

USD/JPY Technical Analysis: December 9, 2016

The Japanese yen depreciated against the U.S. dollar because of the decline of GDP of the country. An increase in tension for greenbacks after the ECB decided not to changes its current monetary policy that rallied the pair.

Sellers tried to pushed the prices lower towards the 113.000 level during the Asian session giving mixed trend in the market yesterday as the price rebounded and stayed higher than the said level. Moreover, the market for the pair became attractive as it moved upwards during the North American session.

The Resistance level is seen at 115.00 level while the Support sited at 114.00 mark.The traders was not able to move the price above the 115.00 level but the price broke at 114.00. The market is focusing on 114.00 level but if there was a clean break, then the trend will shift towards the 115.00 level.

The 50-EMA showed a rebound in the price of the pair seen in the 4-hours chart maintaining its bullish slope. Its MACD histogram showed buyers leading the market supported by RSI as it moves upward.