Daily Market Analysis from ForexMart

[Luis ForexMart]

GBP/USD Technical Analysis: March 13, 2017

The expectations for Consumer Inflation and Industrial Production of Britain showed lower-than-expected results that further weighed on the British currency.

Moreover, the sterling stayed flat out on Friday. The major is trading in the middle points of 1.2200 and 1.2170 but failed to establish a short-term position.

The spot hovered under the moving averages and advanced lower as shown in the 4-hour chart. Resistance highlighted 1.2200, support is at 1.2100.

The MACD histogram increased which confirmed weak stance of the sellers. RSI came close to the oversold territory.

We expect two possible scenarios. When the GBP is oversold, the marks 1.2250 – 1.2300 will not be excluded in the correction. Also, if the sellers continued to be in control the major will keep on sliding. Having broken the 1.2150 region, the 1.2100 will recur within the range.

[Luis ForexMart]

EUR/USD Technical Analysis: March 13, 2017

The single European currency was able to remain in the driver’s seat following the hawkish remarks from ECB President, Mario Draghi. Moreover, the broad-based retracement of the greens open doors for the euro to recover few of its losses.

The current rebound from region 1.0525 that pulled away the euro from the red. The EUR have sustained its winning position on Friday. The buyers were able to push 1.0600 during EU opening and advanced towards 1.0615 during the latter part of the day.

The 4-hour chart presented the 100 and 50-EMA to ascend and come nearer to the 200-EMA. Moreover, the 50-EMA shifted towards the upper level, 100-EMA appeared neutral and the 200-EMA preserved a bearish trend. Resistance touched 1.0650, support is at 1.0600.

The MACD histogram came in the positive territory. Upon maintaining this grounds, buyers will gain more strength. RSI headed north indicating an upward impetus.

The euro indicated an overbought condition. Forecasts say that pullback is expected within the market in the near-term. The next focus is at 1.0550 mark

[Luis ForexMart]

USD/CAD Technical Analysis: March 14, 2017

The big picture featured a positive tone within the market. The US dollar hovered around the ascending channel. The sell-off that recently occurred turned the major towards the lower limit. The American currency lies in the narrow flat in the middle ranges of 1.3470 and 1.3440 yesterday. The price appeared neutral on the back of sell-off on Friday. Other than that, traders calmly wait and trade before the Fed Reserve meeting.

The spot maintained its position on top of the moving averages that pointed upwards as set out in the 4-hour chart. Resistance is shown at 1.3470, support take hold of 1.3400 region.

The MACD histogram softened which confirmed weakening of the buyer’s stance. RSI seem neutral.

The technicals indicate a further downward ex

[Luis ForexMart]

GBP/USD Technical Analysis: March 14, 2017

The UK calendar appeared in an idle manner on Monday. The British currency was able to initiate a recovery despite the profit taking. Moreover, the Brexit bill is expected to thrash out within this week held in the House of Commons. The sterling finally gained strength to escape from the flat trading after its third day.

During the daily open an upward momentum emerged. While buyers drove the price towards 1.2200 level and pushed the barrier amid early European trades. After breaking the mentioned level, the GBP/USD directed to 1.2250 during post-open of London session.

Moreover, the Cable tested 50-EMA as shown in the 4-hour chart during the EU hours. The major stayed under them moving averages that were pointing downwards.

Resistance is at 1.2300, support entered 1.2200.

The histogram grew more but indicated the weak position for the sellers. RSI oscillator ascended.

The current reversal was triggered by the profit-taking. The next possible bullish target is 1.2300

[Luis ForexMart]

EUR/USD Technical Analysis: March 14, 2017

The single European currency attained a monthly high against its American counterpart after reports regarding ECB’s consideration on the predicted rate hike prior to the end of Eurozone and Germany’s QE Economic Sentiment from ZEW which provided support for the euro on Tuesday.

The buyers were able to resume its upward impetus during Monday night but the EUR weakened subsequent to the level testing around 1.0700 and kept intact the pressured area of profit-taking. The spot swing towards the downside and cut through the 1. 0700 region during the morning EU session. Having broke the region, the major resumed to move lower touching 1.0665 in the latter part of trading.

The 4-hour chart presented the price lead the moving averages higher and extended its development on top of it, while the 50-EMA also turned to the upper point reaching the 100-EMA. Both 100 and 200-EMA appeared neutral as shown in the same timeframe. Resistance is found at 1.0700, support is at 1.0650.

The MACD histogram weakened which further implied a momentary weakening of the buyers. RSI indicator departed from the overvalued grounds and favoring a lower move. The next possible scenario is the downward moving through 1.0650 mark. The price would likely approach 1.0625on profit-taking.

[Luis ForexMart]

AUD/USD Technical Analysis: March 14, 2017

Trading the Australian dollar was seen to be full of vigor after it has recovered followed by the downtrend. The U.S. payroll reports did not meet the market’s expectations worsened by a reversal but is still high with the low demand for the greenback. The EUR/AUD pair influenced this move as the market now focuses on Euro.

Overall, the U.S. equities accelerated higher driven by metal and mining stocks after a surge in commodities during yesterday's session. On the other hand, the reports on China is anticipated to have increased including the industrial production with 6.2%, fixed-asset investment with 8.3% and retail sales with 10.6%.

The NAB confidence of Australia for the month of February has decreased slightly at figure of seven from the former ten while the business status steadies at an average as figure of nine was seen compared to the previous of sixteen. Although, there is not much impetus to the AUD/USD that declined for some time, it is now in a risky position at .7550 level prior to the release of Chinese data.

[Luis ForexMart]

USD/JPY Technical Analysis: March 14, 2017

The U.S. dollar is recovering influenced by the Downbeat Machinery Orders and Tertiary Industry Index. There is a negative outlook in the greenback after all the returns has been wiped out while the investors awaits for the next Fed meeting outcome.

Buyers wasn’t able to break the 115.00 mark that made them withdraw followed by an abrupt decline on U.S. dollar last Friday. It was seen to recover in the past night as it continued the downtrend comes morning. Sellers tried to move the price towards the 114.50 spot that halted them by mid-day.

The price maintained the price higher than the moving averages that are directed upwards. The Resistance is positioned at 115.00 level while the support was seen at 114.00 mark. The MACD declined implying that buyers are losing strength while the RSI moves downward that affirms the downtrend.

The pair is seen to weakened in the short-term and the downtrend is driven by the fed meeting up ahead. It hovers lower than the 114.50 level moving towards the next target at 114.00 mark.

[Luis ForexMart]

NZD/USD Technical Analysis: March 14, 2017

The New Zealand dollar against the U.S. dollar traded with high volatility in the market as traders are trying to assess in this low level of trades. The 0.70 mark is seen to be strongly resistive and forms of exhaustion will have a potential for selling. However, if the market is able to break lower than the current psychological level, this signals the opportunity for selling. Contradictingly, it is not favorable to buy this pair but if the price moves higher than the 0.70 mark, making it a significant change in direction.

[Luis ForexMart]

USD/CAD Fundamental Analysis: March 14, 2017

The USD/CAD pair spent most of yesterday’s trading session on a mostly ranging and consolidating manner, with the currency pair consolidating within the 1.3400-1.3500 region due to the lack of significant economic events from both the US and the Canadian economy. The market is now on a monitoring stance particularly on the USD and this has been reflected in the lack of any kind of activity in the USD/CAD pair.

The market is currently waiting for the onslaught of the release of several economic data from the US tomorrow, with the most important release being the FOMC announcement where the central bank is expected to implement its first interest rate hike for the year. Aside from the FOMC announcement, the CPI data as well as the retail sales data will also be released tomorrow. The high expectations for an interest rate hike tomorrow has helped keep the USD/CAD pair to remain within its range highs. However, the market is not yet sure as to how much hawkishness will be needed for the USD bulls, and this has become somewhat problematic for the USD/CAD pair as the pair has difficulty calculating its move immediately after the FOMC data release.

If the statement from the central bank comes out as satisfyingly hawkish, then the USD could boost its strength and could help the USD/CAD bulls to challenge the sells located at the pair’s 1.3500 barrier. If the data comes out otherwise, then the USD/CAD pair could possibly retreat to its previous trading range. For today’s session, the US economy is expected to release its PPI data which is not expected to induce added volatility into the pair.

[Luis ForexMart]

GBP/USD Fundamental Analysis: March 14, 2017

Although the UK economy saw a lot of events and developments during yesterday’s trading session, this has done practically nothing to induce added activity into the GBP/USD pair. A slight bounce occurred in the pair during the previous session but this was automatically met with a selloff, especially since the bounce was somewhat thin and was unable to hold on and prevent the said selloff from occurring. The GBP/USD pair has however managed to surpass 1.2200 points and even managed to reach 1.2250 following market rumors that Theresa May might not be invoking Article 50 within the week. However, since there was no actual confirmation that the invocation would indeed be happening this week, the market became initially confused on the British pound’s rally and the lack of basis to this particular assumption has caused this bounce to eventually die out.

In addition, there have been rumors swirling around that the British government might not accept Scotland’s request to hold an independence referendum, especially since the UK is already neck-deep in uncertainties and another referendum would only cause more disaster for the country’s economy. These series of events has caused the GBP/USD pair to retreat towards 1.2200, where it is currently trading.

For today’s trading session, there are no expected data releases from the UK economy, while the US economy will be releasing its PPI data. However, all eyes will be on the FOMC rate announcement which is set to be released tomorrow. This, in addition to the impending invocation of Article 50, are both expected to keep the GBP/USD pair under pressure in the short term.