Daily Market Analysis from ForexMart

[Luis ForexMart]

AUD/USD Technical Analysis: December 9, 2016

The pair AUD/USD is moving towards the support of the price trend in 4-hour chart. This current trend could persist if the support remains strong at 0.7369 level with the next target at 0.7600 level. Yet, if a clearcut is seen lower than the support level then this marks the final uptrend at 0.7508 level which would then be followed by a price drop to 0.7310 psychological level.

[Luis ForexMart]

EUR/AUD Technical Analysis: December 9, 2016

The psychological levels were seen at 1.4328 within a good range, Looking downward, the support stands at 1.4186 that go further down towards the 1.4147 mark with a possibility for a rebound to occur. The Average Daily Range for today is 129.pips.

[Luis ForexMart]

EUR/USD Fundamental Analysis: December 9, 2016

The EUR experienced a sharp decline during yesterday’s trading session following the ECB conference, where Mario Draghi announced that the ECB will be extending its quantitative easing program for the whole of 2017. Draghi has also stated that the European Central Bank will be closely working with the financial market up until 2018. Prior to the ECB meeting, market players were instead expecting that the QE program will be tapering instead of having an extension, and this has caused a sharp drop in the value of the EUR since this particular move by the ECB is expected to further devalue the EUR.

This particular statement from the ECB has caused the EUR/USD pair to initially surge up to 1.0870 points but eventually dropped up to its support levels of 1.0600 points. The EUR/USD is expected to exhibit added bearishness for today’s trading session as the market is still in the process of reacting to this particular statement from the ECB. However, the currency pair is now within its strong support levels of 1.0500-1.0600 since the Federal Reserve is scheduled to have its meeting at the start of next week. If the currency pair manages to go beyond the 1.0500 trading range, then the EUR/USD is expected to finally exhibit its expected bearishness, but until then, market players will have to continuously monitor if ever the pair moves to the 1.0500-1.0550 trading region.

[Luis ForexMart]

GBP/USD Fundamental Analysis: December 9, 2016

The GBP/USD pair consolidated poorly during yesterday’s trading session after the sterling pound was adversely affected by the recent sharp drop in the value of the euro. The previous trading session initially started on a positive note for the GBP after it managed to regain some of its previous losses, causing the currency pair to hit 1.2700 points during the Tokyo and European trading session. However, the release of the ECB announcement caused the euro to incur massive losses, with the EUR/GBP pair experiencing devaluation. This then triggered the GBP/USD to retreat from 1.2700 and is currently hovering at the 1.2600 region.

The GBP/USD is expected to consolidate further with a somewhat bearish note as the euro tries to recover from this very significant loss of value. The Federal Reserve will be meeting at the start of next week, and the market currently has rate hike expectations of up to 0.25%. The dollar is then expected to exhibit weakness once the announcement from the Fed is released, and market liquidity is also expected to be relatively low during this particular period.

For today’s trading session, there are no major economic news releases from the UK, and the GBP/USD would most likely consolidate further along with a bearish stance and will be subject to added downward pressure due to the recent weakness in the value of the EUR.

[Luis ForexMart]

GBP/USD Technical Analysis: December 12, 2016

The Goods Trade Balance and Total Trade Balance established an optimistic data on Friday along with the strengthening of the sterling pound. The British currency procured some ground during the earlier trading session on Friday. Buyers drove the prices towards a higher position and tested the 1.2600 level amid the European session. The upward impetus short-lived consequent to the test, following the GBP’s rollback below the level. As indicated in the 4-hour chart, the cable pair rebounded through the 50-EMA. Moving averages uphold its bullish bias.

Resistance lies in the 1.2600 are, the support sits at the 1.2500 region. The MACD histogram pierced through the negative range. When the MACD stayed in the negative zone, sellers will obtain more strength. The RSI is within the neutral territory.

The GBPUSD is expected to weaken upon the break below the 1.2600 level. Likewise, this could lead the prices towards 1.2500.

[Luis ForexMart]

EUR/USD Technical Analysis: December 12, 2016

The decision of the ECB to maintain its monetary policy had strengthened the dollar. However, the euro is weakening once again after it made a dipped on its fresh monthly highs and failed to hold its gains. Meanwhile, the EURUSD headed southwards on Friday. During the EU hours, the sellers successfully broke the 1.0600 region then continued to lead the prices through the 1.0550 lower, the pair surpass this level amid the NY session. The price rebounded in the 200-EMA downwards as shown in the 4-hour chart. After the euro and greens had broke both 50 and 100-EMAs, it continued to progress down in the moving averages. While the 100 and 200 EMAs preserved its bearish bias, 50 EMA rendered a neutral stance. Resistance touched the area of 1.0600, support is seen at 1.0550.

The MACD histogram makes its entry point within the negative zone. Should the indicator kept unmoved in the negative area, the sellers are able to gain further strength. The RSI remains oversold.

In case the prices settled below the 1.0600 support level, this will cause for a short-term downtrend. The next target of the sellers is 1.0500 and 1.0550.

[Luis ForexMart]

USD/CAD Technical Analysis: December 12, 2016

The pair USD/CAD is moving in a downward direction from the 1.3536 mark. This is anticipated to continue for the day with the next target towards the 1.3000 level. Resistance is positioned at the higher price channel and if a clear break is seen above the psychological levels then this would signal the completion of the downtrend.

[Luis ForexMart]

EUR/USD Fundamental Analysis: December 12, 2016

The pair EUR/USD has been trading on a weak side considering this is the first day of the week with Fed meeting scheduled soon and the expected first rate hike of the year is most likely to be announced. This will be a significant event for the financial market where everyone is waiting for this hike which will bring volatility for the week. It remains questionable whether the current support region will stay resilient at 1.05 level. This will open the way for reduction of this pair.

Events in Italy also influenced the pair most especially Euro which seems to persist throughout the day. The third largest economy brings crisis and the Italian banks seem to need an aid worsen by the political uncertainty. This will be discussed once the change in government commence its office and a bailout would just mean more spending. Hence, the trading session started low at 1.0520 level. It recovered and was able to position above the 1.0550 mark.

There is no major news to be publicized today. Hence, the pair is anticipated to remain in a consolidation state and barish tone. The pivotal point of the pair is the price at 1.0500 level which would determine the direction of the trend and who will be the predominant market participants either the sellers or buyers. However, traders have to be cautious with making long positions which is much safer to have a stop loss marked lower than the 1.0460 level.

[Luis ForexMart]

NZD/USD Technical Analysis: December 12, 2016

The price of NZD/USD is rising as shown in the price channel joining the recent highs and lows of prices. The current price is being tested with the psychological levels that connects with the prior resistance for short-term.

The 200-SMA positioned lower than the 100-SMA indicating the least resistance will be at the upper side. At the same time, this predicts that the uptrend will most likely continue instead of a reversal. The channel support for the 200-SMA is seen at .7115 that further strengthens the base level.

A rebound is possible between the .7250 and .7300 levels with the Stochastic level moving back from the Oversold area that signals buyers gaining lead in the market. However, if a break is seen lower than the support level, sellers could take advantage and move the price down.

There is no major releases from New Zealand for the week. It has been said by the central bank Governor of New Zealand, Wheeler, that there would not be any price cut in the rates as of now since the appreciation of Kiwi is still controllable. Yet this brought raise in dairy prices after the GDT auction.

The only news that may influence the price is the FOMC statement. It is already expected for Fed to have a rate hike soon yet part of the market is still thinking on what will be the plan for next year. Should there an indication for them to be complacent, this could influence for dollar to depreciate.

As for medium risks, the Manufacturing Sales report for the third quarter in New Zealand, Industrial production and retail sales figure in China and Retails Sales data and CPI reading in U.S would have a minor effect in the currency. If the reports in US are low and weak, this would change the dollar to have a bearish tone and lessen the chances of Fed tightening.

[Luis ForexMart]

GBP/USD Fundamental Analysis: December 14, 2016

The GBP/USD is still one of the most stable currency pairs as of the moment, with the GBP/USD pair trading way above 1.2700 points. The market is currently waiting for the results of the FOMC meeting, and it is anticipated that the market will be mainly focusing on the Federal Reserve’s activities in the coming weeks after the statement release from the central bank.

There has been no major economic releases from the UK, but the region is expected to enter a period of marked volatility due to the commencement of the actual Brexit process this coming 2017. For the European session, the claimant count change data is expected to be released into the market, and the Bank of England is also expected to make a statement, and these are expected to increase the GBP/USD pair’s volatility levels.

The market is also expecting the release of the FOMC minutes, as well as the details of the press conference which is scheduled immediately after the Fed meeting. However, the central bank’s expected decision to implement a rate hike might not cause much volatility since the majority of traders are now shifting their focus to the details of the subsequent conference, since this could give hints on the future course of the central bank this 2017. The GBP/USD is speculated to become more volatile as compared with other currency pairs, and low volume is expected before the year ends, with prices becoming highly moveable as the end of the year approaches.