Daily Market Analysis from ForexMart

[Luis ForexMart]

GBP/USD Technical Analysis: October 28, 2016

The sterling pound was able to acquire some measure of support following the release of a highly positive GDP report for the region. The GBP has now significantly increased in value. However, further profits for the sterling pound was restrained after the USD was able to recover its previous losses.

The GBP/USD remained a few points away from its current support level of 1.2200 during Thursday’s session, with its most recent reversion stalling within the 1.2150 range which caused the pair’s price rate to drop. Meanwhile, the GBP stayed within the 1.2200 range and increased in value during the London session, but the GBP/USD pair slightly weakened during the New York session. The GBP reverted from the 50-EMA within the 1.2200 range and was able to break through the 200-EMA in its hourly chart. The 200 EMA is is exhibiting a downward trend, while the 50 and 100 EMA is currently at the neutral territory. Resistance levels for the GBP/USD is at 1.2300, while support levels for the pair are expected to be at 1.2200.

The MACD technical indicator for the pair is currently at the middle, and an increase in buyer strength is expected once the histogram indicator moves to the positive side of the chart. However, once the MACD enters the negative side, then this will signal a market takeover by sellers. If the sterling continues to weaken, then the GBP/USD pair is expected to go below 1.2200, wherein sellers are expected to move the currency’s value further into 1.2100. On the other hand, the downward pressure on the sterling might be lessened if the pair goes beyond the 1.2300 range.

[Luis ForexMart]

USD/JPY Technical Analysis: October 28, 2016

The USD was able to maintain its three-month price advantage against the JPY after a positive US Treasury yields data and growing positive expectations with regards to the Fed rate hike in December. Thursday’s session saw the USD increase further in relation to the Japanese yen, with the USD/JPY bouncing back from its previous losses during the last trading session.

The pricing for the pair remained on the positive territory and was able to reach the 105.00 range during the rest of the trading session. The currency pair was able to go beyond its current moving averages and is currently pointing on the higher side of its hourly chart. Support levels for the currency pair is at 104.50, while resistance levels are set at 105.00.

The MACD indicators for the pair is expected to increase, while the RSI indicator for the pair is currently consolidating within its overbought trading range. The USD/JPY pair will have to maintain its value above 104.50 points in order to retain its bullish stance and create more gains for the pair. Meanwhile, if the pair closes down the trading session at 104.50, then the pair is expected to go even lower at 104.00 points.

[Luis ForexMart]

GBP/USD Technical Analysis: November 02, 2016
The GBP/USD pair increased up to 1.2280 points but immediately reverted back to 1.2200 points before closing the previous trading session at 1.2230 points. The momentum of the GBP slowed down after the release of the UK Markit manufacturing PMI data for October which plummeted to 54.3 points from its previous reading of 55.5 points. Market speculators are waiting for the results of the Bank of England’s Thursday meeting even though the BoE is not expected to make adjustments to its monetary policies as of the moment.
However, BoE governor Mark Carney relieved the market on Monday after announcing that the governor will be serving another term in order to help the bank’s economic policies adjust to the effects of Brexit. The technical indicators for the pair have maintained their neutral bearings with the 20 SMA now at 1.2200 and other indicators seen at the positive territory but lacking decisive directional strength.
Market players are advised to monitor the 1.2335 region on the upward territory and its support levels at 1.2170 points since the pair will have to break through any of these levels in order to gain significant directional momentum.

[Luis ForexMart]

USD/JPY Fundamental Analysis: November 02, 2016

The JPY inched higher against the USD during Tuesday’s trading session as a result of safety buying from market players. This flight to safety was caused by a sharp sell-off in the US equity market after equities dropped due to investor reactions to the FBI’s probe of Democratic Party presidential candidate Hillary Clinton, as well as the two-day meeting of the Federal Reserve which had a significant impact on the foreign exchange market.

Profits lagged behind on Tuesday after investors shifted their focus on the upcoming elections, as well as decisions from the Fed, especially since there are concerns from the market that a Trump victory could lead to a Brexit-like situation in the US. The US Final Manufacturing PMI data came out at 53.4 points, going slightly above the expected data of 53.3 points. Meanwhile, the ISM Manufacturing PMI was released at 51.9 points. Construction spending data dropped by up to 0.4%, falling short of traders’ expectations of 0.5%.

The Bank of Japan voted last Tuesday to maintain its current interest rate as well as its target for its 10-year government bond yields at -0.1% and 0%. The BoJ also cautioned market players that inflation risks and growth risks are currently on the negative territory.

[Luis ForexMart]

USD/JPY Technical Analysis: November 2, 2016

The assumptions regarding the delay of the monetary policy of BoJ were bygone just as the regulator made a reduction according to inflation forecasts. The recent news made an insignificant effect against the pair. The upward notion suddenly lose impetus and the pair also dropped its latest highs, making trades within the 105.00 major level amid the EU session.

The price toggle on every level and tried to reach an upside potential causing the sellers to keep an eye over the 105.00 region. Moving averages plummeted according in the 1 hour chart. The price break the entire moving averages then settled in a lower direction within the same chart.

Resistance rested at 104.50 level, support sustained the 104.00 region. MACD lies in the positive territory. The histogram declined which attest a weak position for the buyers. RSI occupied the oversold area.

[Luis ForexMart]

NZD/USD Technical Analysis: November 3, 2016


Followed by the positive release of the NZ’s labor market statistics is the strengthening of kiwi. Likewise, the most recent report regarding inflation expectation had bolstered the country per se. At present, the pair had sustained a strong trend as of yesterday.

Buyers were able to break the price beyond the marks 0.7250-0.7300. As shown in the 4-hour chart, the price remained intact on top of the moving averages. The 50 and 100 EMAs shifted to an upward direction while the 200-EMA continued to track towards the lower position. Resistance is seen at 0.7300, support is situated at 0.7250. MACD is inclined within the positive area. RSI is moving up and finally entered the overbought territory.

NZDUSD pair were apt to obtain the 0.7350 level upon breaking the 0.7300 region so as to maintain its bullish tone. Preferably, when the pair arrived in the 0.7250 area, the support level 0.7200 will rise again.

[Luis ForexMart]

EUR/USD Technical Analysis: November 3, 2016


As the issues regarding the presidential election in the United States arose, the dollar relatively fall to its three-week low. Furthermore, various reports released in Germany had greatly affected the growth of euro. As of the moment, the euro hovers in the short-term bullish momentum on Wednesday.

The pair comes up with a strong level of resistance over the 1.100 which caused for the EURUSD to soften. The euro and greens are trading on its fresh 3-week high below the 1.100 during the EU hours. The price intervenes the 200-EMA then headed northwards as indicated in the 4-hour chart. All moving averages maneuver an upwards slope in the same chart. Resistance proceeded at 1.1100 level, support comes in at 1.1050.

The MACD thrived and showed buyer’s strength. RSI indicator consolidated in the overbought condition. According to forecasts, in case that the positive tone is kept the euro will fall in between the 1.1100-1.1150 regions.

[Luis ForexMart]

GBP/USD Fundamental Analysis: November 3, 2016

The Bank of England will release its official bank rates later at 12:00 GMT. It is anticipated that the rates will not be changed because of the positive outlook of its price activity for the past weeks. The Monetary Policy Committee (MPC) will announce their unanimous decision in votes regarding bank rates for the month of September. The Governor of BoE, Mark carney, will have a talk when the policy meeting finished.

[Luis ForexMart]

AUD/USD Fundamental Analysis: November 3, 2016

Yesterday, the Australian dollar closed higher even though the US dollar has depreciated. It closed at .7659 with 0.0007 or +0.09% increment.

The Presidential election current polls showing Hilary Clinton, the Democratic candidate is losing to Donald Trump which greatly strains the U.S. dollar. Moreover, the next Fed meeting on Wednesday is most awaited relative to the results of the U.S. Presidential election. The financial market is siding on higher chances of Clinton to win the election.

The most recent monetary policy decision did not create tension among traders. Hence, it was decided to leave the rates as it is but/ still uncertain with the December rate hike. They also hinted that they would not implement a rate hike immediately with raising concerns on the U.S. presidential election as they prefer to wait for the outcome instead.

Aussie rates will be dependent on the weak U.S. dollars and polls of the U.S. presidential election will affect the price action. The Challenger Job-cut report will be reported early. Soon after the unemployment claims, Preliminary Nonfarm Productivity and Preliminary Unit Labor Costs will also be released.

[Luis ForexMart]

[FONT=Montserrat]USD/CAD Fundamental Analysis: November 3, 2016

The pair USD/CAD remained strong despite all the chaos in th related to the U.S. presidential election with the risks of republican candidate Donald Trump to win. The depreciation of U.S. dollars has affected other currencies such as euro, pound and aussie except for the Canadian dollar. This may be because of steady consolidation of the pari or the bulls taking over the market.

Another event that has affected the prices is the decline of oil prices. Canada has a strong economic dependence to oil market which could weaken the Canadian dollar that counterbalance the depreciation of US dollar. Oil prices are about to drop because of the incoming OPEC meeting in November. For now, the pair would seem to remain in a consolidation state.

There is no major news today in Canada but the unemployment claims is due to be released later this day. The market would remain unsteady because of the risks involved in the U.S. presidential election and the news and rumors revolving around related to the presidential candidates.[/FONT]