Daily Market Analysis from ForexMart

[Luis ForexMart]

EUR/USD Technical Analysis: February 15, 2017

The common European currency stalled and pushed lower on the back of negative data from Euro region and Germany. The initial GDP statistics of the eurozone for Q4 presented a lower-than-expected outcome while economic sentiment for this month further decreases.

The EUR closed with a weak stance on Monday. Sellers found a hurdle around 1.0600 however, unable to regain it. The renewed bids within 1.0600 level after a brief consolidation period had given some support to buyers in raising spot and overturned few of its losses amid Asian trades on Tuesday. On one side, the upward trajectory slowed down together with softening of EURUSD that wiped out all its gains. The euro rebounded to 1.0600 during the interim of EU hours. The price tested 200-EMA but unable to maintain movement. The spot had bounced off with a downward direction against 200-EMA. The 200 and 100-EMAs were bullish while 50-EMA moved southbound according to the same timeframe.

Furthermore, a sell signal became evident due to the downward crossover made by 100-EMA against the 50-EMA. Resistance lies at 1.0650, support plunge to 1.0600 handle. MACD histogram declined favoring strength for sellers’ positions. RSI is confined around oversold territory.

A short-term bearish trend is deemed to kept intact. bearish sentiment will signal its extension upon a clear break under 1.0600 level. majors have a tendency to resumed its downfall until 1.0550 mark.

[Luis ForexMart]

GBP/USD Technical Analysis: February 15, 2017

The downbeat data regarding inflation weighed against the British currency. However, it is recorded in the previous month that the inflation of United Kingdom beefed up reaching its highest level after two years. This development in January exceeded the preceding results but failed to meet the projected figures.

The GBPUSD resumed its reversal amid Asian hours reaching its 3-day high near 1.2550 where the spot dropped renewed offers. The sterling turns below the selling pressure during the morning trades of Europe. Sellers pushed the cable downwards and broke the level 1.2500 upon the onset of London session. The spot resumed its losses and established its daily lows around 1.2450 region. Having touched the region, the downtrend weakened which caused for the buyers to initiate a bit recovery.

As indicated in the 4-hour chart, the price leads the 100 and 50-EMAs downwards succeeding a lower crossover by the 50 over the 100-day moving averages. The 50-EMA continued to ploy a lower trend while the 200 and 100-EMA moved northbound. Resistance is seen at 1.2500, support hit 1.2400 handle.

The MACD histogram entered the centerline. A positive position will imply added strength for the buyers while an entry in the negative territory allows the seller to take control the market in general. RSI headed south after escaping from the neutral zone.

The technicals viewed a bearish sentiment. If the pair focuses on the 1.2500 range, the GBP is possible for further weakening. The next probable target of the sellers is 1.2400 and 1.2350 marks.

[Luis ForexMart]

USD/JPY Technical Analysis: February 15, 2017

The US dollar weakened against the Japanese yen. The data of Japan’s Industrial production have surpassed the investor’s projections and further provided the major some decent support. The pair preserved its ask tone yesterday. Failure to surpass 114.00 level would send the sellers back to the market driving the spot towards its fresh lows. The USDJPY resumed its bearishness amid Asian hours and dipped to 113.20 region by which sellers stalled during the post-EU opening.

The 4-hour chart showed that the pair met a strong support at the 100-EMA. The spot is sandwiched in the middle of 100 and 200-EMAs throughout the morning session. The 50 and 100-EMAs were trending flat while the 200-day moving averages directed southbound as indicated in the same timeframe. Resistance pierced the 114.00 mark, support is seen at 113.00.

The MACD indicator grew less which confirmed weak buyer position. RSI is in the neutral territory after it departed from the overvalued zone.

The bullish momentum is possible for further recovery. A close on top of 114.00 mark would cause to move forward until 114.50 range.

[Luis ForexMart]

USD/CAD Technical Analysis

The U.S. dollar against the Canadian dollar declined on Tuesday session but it changed course and formed a candle pattern similar to hammer. If the market will be able to break higher than the shooting star found on Monday session, the price could reach towards the 1.32 handle. There seems to be a significant support level down below the 1.30 level which may not be favorable for short-term trades. However, most likely the price will rebound on its next move.

[Luis ForexMart]

NZD/USD Technical

The New zealand dollar surged on Tuesday morning session but turned around later on reaching towards the 0.7150 handle. A minimal support is seen below level bringing choppiness to overall trading. However, it is still possible for the buyers to return in the market although it is predicted by Yellen that rate hikes are not far from happening which will strengthen the U.S. dollar. This would also be advantageous for commodities that would increase the demand which eventually pull the New Zealand dollar up.

[Luis ForexMart]

USD/CAD Fundamental

The U.S. dollar against the Canadian dollar struggles close to the base of the range, despite the dollar surges in the charts in yesterday session. There was not enough momentum to drive the price from lows as it trades lower than the 1.3100 level. It’s current weak condition is cited as a consolidation for the next rebound instead of ebbing because of the price fluctuation. It is anticipated for the current trend to persist in the next days to come unless it changes and persist in the trend.

As Yellen attested the monetary policy in the market was focused on this to determine whether the Fed will implement the rate hike and if the price trend will turn bullish. As expected, Yellen did not elaborate more and was not clear if there will be multiple rate hikes this year. Although she reiterated that she is open for the rate hike on March. This has brought delight to the market but at the same time it has become risky for traders. Nevertheless, this has pushed the dollar to strengthen as it reversed back to the 1.31 mark for a short period of time. Yet the bulls were not able to maintain this level as it changed after moved to the base of the range.

The Manufacturing sales data from Canada region and the retail sales and CPI data from the U.S. will be released today. Added by the testament from Yellen that is expected to bring volatility in the market. However, it is still unclear whether this would proceed to the continuation of the uptrend or if the psychological level at 1.300 will remain under tension.

[Luis ForexMart]

USD/JPY Fundamental Analysis: February 15, 2017

The USD/JPY pair surged in value on Tuesday as the demand for high-risk assets further increased among investors. The USD also became more attractive for investors as a result of an increase in Treasury yields. The USD/JPY pair finished off the last trading session at 114.249 points after increasing by 0.44% or 0.506 points. This increase in Treasury yields was further supported by Yellen’s remarks, after the Fed chair stated that it would be impractical to hold off the impending interest rate hikes by the central bank, especially in the face of burgeoning economic growth and inflation rates.

Today’s session is expected to be mostly driven by investor sentiments, with high demand for risky assets becoming the likely catalyst. Yellen will also be releasing a statement in Congress today, and the Fed chair is expected to offer more clarifications with regards to the guidelines and further details with regards to the Fed rate hike, with investors putting a 22% probability of an interest rate hike this coming March. The US will also be releasing a number of economic data today, such as the retail sales report and consumer inflation data. Accompanying these major reports are the Empire State Manufacturing Index, Capacity Utilization data, and Industrial Production data.

Yellen’s statement today is expected to inject additional volatility into the currency pair, and if her comments come out as hawkish, then this could cause the USD/JPY pair to further increase in value. If Yellen refuses to confirm market speculations of a rate hike in March, then this could be used by investors to book their own profits.

[Luis ForexMart]

GBP/USD Fundamental Analysis: February 15, 2017

The GBP/USD continued its weak trading streak and is expected to continue this particular activity until the week comes to a close since the dollar’s value will most likely to increase as this week progresses. The dollar’s recent increase in value can be mostly attributed to the market shifting its focus to the Federal Reserve from Trump’s policies, especially now that the market is beginning to realize the importance of the Federal Reserve’s interest rate hikes.

In spite of the recent surge in the dollar’s value, the sterling pound has managed to do relatively well as the guidelines of the Brexit process becomes clearer by the minute, and the GBP/USD pair has somewhat managed to keep itself above water during these past weeks. However, the CPI data from the UK released yesterday came in at a disappointing rate, and Yellen’s speech hinted at the central bank possibly implementing a number of rate hikes this year. This has caused the currency pair to plummet all the way down to 1.2500 and 1.2440 before finally settling at just above 1.2450 points. The currency pair’s stance looks dismal as of the moment and will continue being so for as long as the Brexit process further clarifies its guidelines.

Both the UK and the US will be releasing quite a number of economic data today, such as the claimant count change data and average earnings data from the UK and the retail sales data and the CPI data from the US. Yellen will also be making another testimony for today, and this is expected to increase market volatility.

[Luis ForexMart]

USD/JPY Technical Analysis: February 16, 2017

The British pound against the Japanese yen declined slightly on Wednesday session although it seems that the support level below is strong enough to keep the uptrend. If the market breaks higher than the peak of the range, this gives a buying opportunity to being the market towards the 145 handle. The 140 level and below looks like a significant support that could become a floor in the market. Traders should expect high volatility and it would not be long for buyers to be active again.

[Luis ForexMart]

NZD/USD Technical Analysis: February 16, 2017

The New Zealand dollar against U.S. dollar declined on Wednesday trading session. It reversed with hints of bullish tone as it breaks higher than the 0.72 handle. If the price breaks highers than the current range, it is possible to reach the 0.7250 level which could further go to the 0.7350 level. It has been a while for the pair to be in uptrend and the reversal with 38.2% Fibonacci retracement is indifferent in trading. It may not be favorable to position for a short-term since the price keeps on climbing higher.