Daily Market Analysis from ForexMart

[Luis ForexMart]

[SIZE=6]Fundamental Analysis EUR/USD: September 26, 2016

Euro proceeds in a 200 - 300 pips range weeks ago and is expected to keep steady in the remaining days of this month. The EUR/USD pair will continue to move in a bullish way considering that it is a new week which is the last week of September. There is no expected radical change in the market since currency movements this week is an outcome of the trading market activity last week

European banks hope to sustain the range of Euro which is crucial for market recovery since Brexit. However, it is difficult for investors who trade in the same region to afford two currencies wherein both happen to have low values as shown in the charts.

The only affluential news this Monday is the anticipated release of German Ifo Business Climate that concerns Euro this week. This day has a good start and the bullish bias will persist until later this day.[/SIZE]

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[Luis ForexMart]

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Fundamental Analysis GBP/USD: September 26, 2016

The GBP/USD pair endured the similar fate with the EURUSD since both pairs are stucked in the same range, however the range spot of the euro and dollar are doubled resulting the GBPUSD to have a greater volatility. The trading range is identified subsequent to the Brexit decision and set between the 1.29 and 1.34. The given range presents a price consolidation because the UK market are still waiting for the official price of the sterling after the Brexit ruling. Considering the fact that the EU exit proceeding has not yet initiated again thus the details continued to be unclear making the pound to settled within the uncertain position. In addition to it, the data of UK have presented a better-than-expected results throughout the referendum which bolster the European economy, for all that they still awaits for the detailed activity for better comprehension of the policy effect. As indicated in the weekly chart, the pair is regarded as safe for the investor to use in trading even on the extreme ranges.

A major news regarding Europe is the update of its current account to be issued on 30th of September. Other news from the United States were assumed not to make any impact to the GBPUSD range.

The pair is expected to trade and set a resistance level of 1.3150. If there is a break occurred, it will enable to move in the 1.3300 up to 1.3400 region.

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[Luis ForexMart]

Fundamental Analysis USD/JPY: September 26, 2016

Investors in the Japanese yen were disappointed with the Bank of Japan’s plans to reexamine its monetary policies. The reaction to the central bank’s announcement caused an initial double-sided volatility. Investors have since decided that this particular decision will have no bearing on the economy and on the Japanese currency.

The BoJ’s announcement caused the JPY to increase significantly on September 21, but the USD had already started bouncing back by September 23. The USD/JPY closed Friday’s trading session at 100.971 points, going up by 0.211 points or +0.21%. The pair however still closed the week lower by 1.26%.

The USD/JPY pair was also further weakened by the Fed’s interest rate and monetary policy statement, which turned out to be less hawkish than expected. The Federal Reserve did not increase its interest rates this month, but there is still a possibility of an interest rate hike in December.

The USD experienced a downward pressure.due to the Fed’s lowered expectations and the decreased possibility of future rate hikes, which can lead to a lowered appreciation of the USD since the central bank’s decision indicates a slow-moving US economy.

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[Luis ForexMart]

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Technical Analysis AUD/USD: September 26, 2016

Last week has been the strongest weekly gain for AUD/USD since the end of July. It almost go beyond the 0.76 line. Everything was on a stand still as the Fed price hike is still at stake which is reportedly to happen by December.

It is already anticipated for the rates to remain unchanged at 0.25% AUD/USD started at 0.7501 this week which has incremented to 5 pips from 0.7675 after a low of 0.7500. It regained later last week and closed at 0.7608 withstanding a resistance at 0.7692.

This Monday, the Assistant Governor of the Reserve Bank of Australia is scheduled to give statement at a financial conference at Melbourne. This will give indication on the future monetary policy of the financial market. On the other hand, the Reserve Bank of Australia had implemented two cuts this year and another inflation may happen later this year. [/SIZE]

[Luis ForexMart]

Fundamental Analysis USD/JPY: September 27 2016

The USD/JPY stopped at 0.665 or -0.66% at 100.306. Financiers of the Japanese yen attacked the US investors on Monday as they kept arguing about the BoJ's plan to change the monetary policy.

Despite of the preparation by many investors for the upcoming OPEC meeting and the first presidential debate of the United States, the Yen merchants awaits for the statement of the central bank Japanese Governor Kuroda. As he affirmed last Monday about the readiness of Nichigin regarding the usage of policy tool for the accomplishing the 2% target of inflation.

Furthermore, news released some information during the meeting by which the bank is confident that they will reach their goal, but there are some uncertainties which might leave an impact for accommodating the renewed policy.

The movement of price can be identified upon the debate outcome, considering that this is the major news at this moment.

In case that Mr.Trump got the victory then stocks presumably would be sold-off whereby investors of yen would be safe because it will settle on a higher position.
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[Luis ForexMart]

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Fundamental Analysis Gold: September 27, 2016

A small incremental change closed Gold on Monday. Traders were not expecting for the early sign of weakness after US dollar and US equity markets are traded lower in the market. Adversely, this is an opportunity for metals such as Gold. Sellers domineer trading while buyers are doubting the tenacity of the market after last week’s rally. Up to the last minute before the end of trading session, those on the lookout for bargains benefited from the aberration of the market that move Gold higher.

Monday trading demonstrated inconsistency that continues to sway Gold until investors buy them. The outflow for Gold was brought by short-term pressure that are aggressively seized by investors while sellers are driven because of long liquidation.

The surge of Gold early this year are to hedge funds caused by weakness in the stock market and crude oil. However, there are other options such as Silver, Platinum and Palladium. Until the traders spend big money to gold, the current state of Gold will not change and stop swaying sideways. [/SIZE]

[Luis ForexMart]

Fundamental Analysis EUR/USD: September 27,2016

The pair produced 58 pip range for the traders while its daily average range should be more than 100 pips. The EUR/USD is situated in an open range for the past few weeks because there is a decline in the daily range which cause the traders to experience some trading difficulty. EURUSD trades with a similar range over the same extremes day in and day out.

Furthermore, it is already proven that euro ranked as one of the strongest currency that performed yesterday since it competently sustained its position against the U.S dollar and advanced in much higher level. Its lowest point still persists above the support seen at 1.1200 which also broke the resistance that comes in at 1.1245. It continually ascended and reached the 1.1275 and further confirmed its normal range. Support level settled at 1.1243.

According to forecasts, major news are not yet issued so the European region is expected to carry out another ranging day of trading. It is also recommended that traders and investors alike should mark the time for stable prices.
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[Luis ForexMart]

Fundamental Analysis for GBP/USD: September 27, 2016

The GBP/USD pair continues to trade at the bottom of its range, closing Monday’s trading session at 1.2950 points. The pair has not yet been able to make a proper recovery from its past price lows. The value of the currency pair will be most likely be decided by the impending adjustments between other currency pairs, particularly the expected EUR/GBP flows towards the end of September.

The GBP/USD pair had strong resistance levels at 1.3140 last week and has plummeted back to the support levels at 1.2950 after failing to go above the resistance level. The pair also momentarily decreased to 1.2910 before going back above 1.2950 points. Analysts are expecting the pair to be bullish for the rest of the daily trading session, possibly going up to the resistance level of 1.3000 points. If the pair manages to go over this resistance level then this would enable the pair to go in the range of 1.3080-3100, where a lot of sells happened during the last time the pair has reached this level.

However, it is still yet to be seen whether the pair would be able to maintain its current value at 1.2950, and could possible lead to a low on Friday at 1.2910 and then 1.2870. The EUR has a somewhat stable bullish stance, and the GBP is also expected to follow this bullish bearing of the EUR, since there are no major UK news that is expected to come out within this period.

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[Luis ForexMart]

Technical Analysis for USD/JPY: September 27, 2016


The Japanese yen strengthened in the middle of risk aversion and is remaining to be a safe haven currency after the Bank of Japan’s statement that the central bank is preparing to implement additional regulations which are intended to increase inflation rates did not hinder the growth of the yen’s value.

The demand for the JPY was supported by the risk-off sentiment, with the price dropping from the present Asian high of 101.00 down to the immediate support level at 100.40 where there is a decreased downward pressure. The 50, 100, and 200 EMAs all declined while the moving averages all went lower in the 4-hour chart. Resistance levels are currently at 101.40 while support levels are at 100.40 points.

The technical indicators for the currency pair are all on the downward trend. However, MACD levels are sustained at the same range which is indicative of positive sellers data. On the other hand, RSI continues to remain over the expected oversold area. The USD/JPY is generally facing a bearish stance, and a closing value at 100.40 might trigger losses and may bring down the pair to the 100.00 range. The USD/JPY may also experience a slight increase if the support for the pair is sustained.
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[Luis ForexMart]

Technical Analysis for EUR/USD: September 27, 2016


The EUR/USD pair rallied up to 1.1278 during Monday’s trading session after positive US housing date enabled investors to avoid the advancement towards a major resistance range. US new home sales went down slightly in August, dropping at a 609,000 annual rate and decreasing by 7.6% as compared to the data last July, lower than the expected 8.6% decline. The USD was also strengthened by comments from the Fed’s lacker which has stated that there is a strong possibility of an interest rate hike in December. Germany’s IFO survey has indicated that the business environment in the EU has increased significantly in September, going up to 109.5 from August’s 106.2, with increase in both the expectations and assessments sector.

The EUR/USD pair meanwhile continues to trade within its current range, suspending its recovery at main resistance levels, with a descent at 1.1615 points. The currency pair also experienced multiple intraday highs and lows within the 1.1280 trading range, and the upward potential will continue to be suspended as long as the price of the pair remains below 1.1280 points. Divergences can already be seen in the 4-hour chart, and the price continues to remain above a highly bullish 20 SMA which has already went above the 100 SMA. There is a high probability of a bearish trading session on Tuesday if there will be more decreases below the 1.1225 range. If the USD continues to strengthen, then there is a probable bearish trade point at 1.1160.
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