Daily Market Analysis from ForexMart

[Luis ForexMart]

USD/JPY Fundamental Analysis: February 6, 2017

The USD/JPY pair attempted to rally several times during the past week due to the positive feel of the US equity markets as well as its effect on the US carry trade but there was a shortage of buyers which could have fueled an upside follow-through. The USD/JPY pair finished the previous trading session at 112.551 points after dropping by -2.17% or 2.496 points. This movement in the currency pair was largely due to Trump’s comments in the past week as well as statements coming from both the Fed and the BoJ.

The FOMC maintained its current rates last week at 0.50%-0.75% and was generally expected by the majority of market players, but the bearish tone of the USD/JPY pair was also largely influenced by the Fed’s refusal to give out hints with regards to its next interest rate hike.

There are no major news releases coming from either Japan or US for this week, and this means that the market will be affected by events that will have a bearing on the current stance of the US dollar. Currently, Trump is aiming for a weaker USD value in order for him to upgrade his statements with regards to currency devaluations and other unfair trade policies. The charts are indicating that the USD/JPY pair could possibly rise up to 109.919 points if sellers of the pair would be able to put enough pressure on the market to march through 112.00 points.

[Luis ForexMart]

GBP/USD Fundamental Analysis: February 6, 2017

The GBP/USD pair has been entrapped in a wide range of 400-500 pips during the past few weeks in spite of the fact that the bulls should be well-fed due to the recent strength exhibited by the sterling pound. Unlike other major currencies, which perished instantly the minute the USD showed signs of weakness, the GBP was able to keep its head above water by some sheer innate force present within the value of the sterling pound.

The market is now getting closer and closer to the invocation date of Article 50, which will then commence the start of the Brexit process, and a lot of market players are very thankful that the workings of the Brexit process are now becoming clear as the invocation date draws nearer. This might not be entirely good news, but at the very least this clarity would lend some sense of direction especially for GBP/USD traders. This is one of the reasons why the sterling pound is doing relatively well against other major currencies who are bearing the brunt of the USD’s weakness. The GBP/USD pair briefly traded within its range highs but eventually dropped and closed last week’s session at 1.2500 points and could possibly weaken further although there might be some minor bounces at 1.2400 or 1.2300 points. Any large corrections within this particular currency pair would probably lead to selloffs since the UK’s economic fundamentals are still looking very positive as of the moment.

UK will be releasing its manufacturing production data this week, and the GBP/USD pair would most likely drop further towards 1.2400 and could even become weaker and reach 1.2300 where a reversion is expected in order to put the currency pair within the safe range.

[Luis ForexMart]

USD/CAD Fundamental Analysis: February 6, 2017

The USD/CAD pair had to deal with a very dismal trading movement last week after its consistent uptrend was finally faced with some barriers. The currency pair dropped below 1.3000 for a short period but eventually reverted albeit much weaker than its expected reversions. The market is now becoming concerned that the USD/CAD was unable to fully regain its strength especially since this pair is expected to be subject to more pressure during this week.

This drop in the pair’s value can be largely attributed to the dollar weakness which has become evident in the value of the USD/CAD pair especially since Canada’s economy is well on its way to further improvement and oil prices are now starting to exhibit stability as the oil production cut agreement continues to bode well for all oil economies, particularly Canada. The US dollar has been negatively hit by the various policies implemented by the Trump administration. With Donald Trump now looking at the NAFTA agreement. If the NAFTA becomes suspended, then this would have a negative effect on the economies of all countries involved, such as Canada, Mexico, and even the US. This is one of the reasons why the currency pair’s support barrier at 1.3000 points has been in significant risk during the past week.

The market is now monitoring whether the bulls of this pair would still manage to maintain its hold on this particular barrier especially since the US average wages report came in with very weak readings last Friday which has caused the US market to slump. This week is the Canadian economy’s turn, since Canada will be releasing its employment data and this is expected to give clues on the current state of the Canadian economy. If the pair manages to break through 1.3000, then this could be seen as a reversal in the pair’s current uptrend.

[Luis ForexMart]

EUR/GBP Technical Analysis: February 13, 2017

The Euro against the British pound swung within its range during the day with candle pattern formed giving a negative tint. A significant support was found at 0.85 level but sellers are trying to move the price. The price could further go down when the price breaks lower than the 0.8450 level. However, if the price breaks higher than the range that was seen during Friday’s trading session, the market could reach the former levels. Overall, there will a rough trading in the market.

[Luis ForexMart]

NZD/USD Technical Analysis: February 13, 2017

The New Zealand dollar against the U.S. dollar declined during Friday’s trading session but was able to recover. After the decline on Thursday session, it is not unexpected that the buyers will try to reach the price towards the 0.72 level. If the price breaks higher than the high point of the candle pattern, it is possible for the market to extend up to the 0.7350 mark for the second time. The market is seen to have a bullish tone for some time that makes the pullback attractive and beneficial of the price to traders. It may not be propitious to sell this pair for now.

[Luis ForexMart]

GBP/JPY Technical Analysis: February 13, 2017

The British pound against the Japanese yen rallied on Friday’s session. The price trend gives a bullish tone being tested at 142.50 level which will be balanced off when buyer pulls the price close to the 140 handle. This makes it more advantageous to go for long positions as seems to go uptrend for long-term. Consequently if the price breaks over the peak of the shooting star for the day, it is possible for the price to reach towards the 145 handle. It may not be favorable to sell this pair as British pound gives a long-term support level against the basket of currencies.

The pair is being traded with high volatility and recently the price has been reversed which is already expected as the price got lowered higher than the former. It may not advisable to go for short since the price could get even lower than 145 handle towards the 148.50 level. The buyers may dominate the market as the price continues to go deep. The Japanese yen has sold off against other currencies. There are potential risks in trading this pair as the pair might go higher, the same way with other currencies paired against the yen.

Overall, the pair gives a choppy sentiment with possibilities of big moves going in one direction as the market gives an impulsive reaction. It seems that the market wanted to reach higher but it remains in consolidation as the market is still trying to gain enough momentum to make a bigger move. However, if the price breaks down lower than the 130.50 level is not a good sign.

[Luis ForexMart]

USD/CAD Technical Analysis: February 13, 2017

The USDCAD was neutral amid Friday night trades. The Asian recovery slowed down overhead the level 1.3120. The greens tried to resume its gains but attempts failed. Renewed selling pressure affected the spot rebounding the price lower than 1.3120 during afternoon session.

The USD fall behind 1.3050 level prior to the opening of the New York hours.

According to the 4-hour chart, the rebounded the 50-EMA lower and tested the 100-day moving averages. The pair is confined under the 200 and 100-EMA throughout the day. The 100 and 50-EMAs is neutralize while 200-EMA moved lower as shown in the same timeframe. Resistance is at 1.3120, support entered 1.3050 region. The MACD histogram decreased which implied weak position for the buyers. RSI is confined in the overvalued territory near the neutral zone.

Bearish sentiment is expected to prevail. If the commodity-linked pair remained on top of the 1.3120 mark, sell order will be posted. The next possible target of the sellers is 1.3050.

[Luis ForexMart]

USD/CAD Technical Analysis: February 13, 2017

The USDCAD was neutral amid Friday night trades. The Asian recovery slowed down overhead the level 1.3120. The greens tried to resume its gains but attempts failed. Renewed selling pressure affected the spot rebounding the price lower than 1.3120 during afternoon session.

The USD fall behind 1.3050 level prior to the opening of the New York hours.

According to the 4-hour chart, the rebounded the 50-EMA lower and tested the 100-day moving averages. The pair is confined under the 200 and 100-EMA throughout the day. The 100 and 50-EMAs is neutralize while 200-EMA moved lower as shown in the same timeframe. Resistance is at 1.3120, support entered 1.3050 region. The MACD histogram decreased which implied weak position for the buyers. RSI is confined in the overvalued territory near the neutral zone.

Bearish sentiment is expected to prevail. If the commodity-linked pair remained on top of the 1.3120 mark, sell order will be posted. The next possible target of the sellers is 1.3050.

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[Luis ForexMart]

NZD/USD Technical Analysis: February 14, 2017

The New Zealand dollar dropped on Monday’s trading session in the midst of high volatility in the market. It would not be surprising if buyers get back on track while they wait for supportive candle pattern. The level at 0.71 seems to be a significant support level. However, if the price reverses higher than the peak of the range for Monday which may be an indication to position long orders. Hence, it may not be advisable for the traders to place short orders with the current fluctuating sentiment in the market in the upper channel.

[Luis ForexMart]

USD/CAD Technical Analysis: February 14, 2017

The U.S. dollar against the Canadian dollar surged on Monday’s trading session. It found a strong Resistance level higher than the 1.31 level but was able to recover and formed an exhaustive candle pattern. The price could further go down towards the 1.30 mark. There is a significant support level formed and it seems that it won’t take long before the sellers try to lead the market again. The pair is seen to move from 1.2968 level towards 1.3062. This signifies a pullback of the uptrend from 1.2968 while if it climbed to 1.3300 level, this would be a correction of the price.

However, if the price breaks lower than the 1.2965 handle, it has opened doors to further go down. On the other hand, if the price breaks higher than the peak of the shooting star formed implying a bullish tone.