Daily Market Analysis from ForexMart

[Luis ForexMart]

EUR/USD Technical Analysis: February 23, 2017

The rising concerns regarding France presidential elections and increasing rate hike expectations of the Fed scheduled in March caused the European currency to remain under the pressured area. Meanwhile, the Business Climate of Germany showed positive figures exceeding its expectations in spite of the bias forecast.

The common currency reversed few of its losses during the Asian hours on Wednesday. The EURUSD highlighted 1.0550 level but the selling pressure within EUR kept intact and drove the spot towards its fresh lows.

The rebounded the 1.0550 and declined to 1.0500 amid EU morning trades. The 4-hour chart showed that the 100-EMA tested the 200-EMA. While the 100 and 50-EMAs preserved a bearish sentiment and on the other hand, 200-EMA is neutral. The price extended its development under the moving averages. Resistance settled around 1.0550, support approached the 1.0500 area. MACD indicator softened which confirmed strength for the sellers. RSI consolidated near the negative territory.

A break under the mark 1.0500 will generate another lower support. A move below the handle 1.0500 would recover a bearish slope at 1.0450 region.

[Luis ForexMart]

GBP/USD Technical Analysis: February 23, 2017

The UK Gross Domestic Product came in with positive figures but the sterling rejected this economic release. The GBP preserved a neutral sentiment as it trades around a familiar range yesterday.

The GBPUSD were unable to maintain the recovery took place on Tuesday, the cable decline steeply on the back of reaching the level 1.2500. Moreover, the price highlighted 1.2450 after some time and hovered within its session low just before the onset of NY session.

The major rebounded the 100-EMA downwards and surpassed the 50-EMA, the two resumed its bearishness, looking at the 200-EMA stayed in the positive and neutral stance. Resistance is at 1.2500, support is seen at 1.2400.

The MACD histogram is situated in the centerline. In case the indicator move close to the negative zone, it will provide support for the seller’s strength while an entry towards the positive territory will open an opportunity for the buyers to dominate the market. The RSI oscillator dropped.

A bearish outlook was preserved. A break under 1.2400 would trigger additional losses through the levels 1.2350 and 1.2300.

[Luis ForexMart]

NZD/USD Technical Analysis: February 23, 2017

An objective trend seems bearish. The New Zealand dollar resumed its reversal on Tuesday regaining greater portion of its previous losses. The price halted on top of the 0.7150 level as it trade in a tight range yesterday.

The spot remained unsteady near its fresh highs throughout the day. As shown in the 4-hour chart, the 50-EMA made a downward crossover to 200-EMA whilst the price resumed its development on the lower area of the moving averages. Moreover, the 50 and 100-EMA drove downwards while 200-EMA preserved a bullish pattern. Resistance pierced 0.7200, support plunge in at 0.7150.

The MACD indicator had a dip confirming addition strength for the seller. RSI hovered around the neutral zone.

The price met a support within 0.7150 loss and stalled through 0.7100.

[Luis ForexMart]

NZD/USD Technical Analysis: February 23, 2017

An objective trend seems bearish. The New Zealand dollar resumed its reversal on Tuesday regaining greater portion of its previous losses. The price halted on top of the 0.7150 level as it trade in a tight range yesterday.

The spot remained unsteady near its fresh highs throughout the day. As shown in the 4-hour chart, the 50-EMA made a downward crossover to 200-EMA whilst the price resumed its development on the lower area of the moving averages. Moreover, the 50 and 100-EMA drove downwards while 200-EMA preserved a bullish pattern. Resistance pierced 0.7200, support plunge in at 0.7150.

The MACD indicator had a dip confirming addition strength for the seller. RSI hovered around the neutral zone.

The price met a support within 0.7150 loss and stalled through 0.7100.

[Luis ForexMart]

EUR/USD Fundamental Analysis: February 23, 2017

The EUR/USD pair was somewhat tame during the first part of the trading session as the market awaited the release of the FOMC meeting minutes, which contained information on the sentiment of Fed officials with regards to the international economy as well as their insights regarding the interest rate hike. The pair’s bias was obviously on the downside as the pair’s value briefly dropped below 1.0500 after consolidating but was able to recover its losses during the latter part of the trading session.

However, the FOMC meeting minutes turned out to be a huge disappointment for the majority of market players as the minutes did not contain the expected intensity of hawkishness after the Fed’s officials reiterated that although the central bank is keen on implementing a total of three rate hikes year, they still think that a March rate hike might not be feasible for the market just yet. As a result, the currency pair plummeted through 1.0550 points before settling to trade at just above this particular level.

Now that Fed officials have made it clear that a rate hike is not to be expected this coming March, the market is hopelessly clueless with regards to the actual timing of this particular interest rate hike, especially since some officials are saying that they are not completely ruling out the possibility of a March rate hike. But since the market is very averse to uncertainties such as this, the dollar is expected to continue weakening for the rest of the trading day. The US will be releasing its unemployment claims data today but is not expected to make a significant dent in the market’s lack of volatility.

[Luis ForexMart]

USD/CAD Fundamental Analysis: February 23, 2017

The USD/CAD bulls are now slowly gaining control over the currency pair as the USD/CAD is consistently trading within its range highs, with the bulls managing to maintain their hold on the pair in spite of the dollar alternately strengthening and weakening its value. The bulls were also able to prevent the pair from descending towards its support barrier of 1.3000 points, a good indicator of what’s in store for the pair in the near future.

The Canadian economy released its retail sales data yesterday which turned out to be a huge disappointment for both the country and the USD/CAD pair. The retail sales data turned out to be the lowest released in over 9 months and was mostly due to the effects of lowering oil prices starting to reverberate throughout the economy. This then caused the bulls to induce the pair to go beyond 1.3200 for a short while, where the pair was met with a lot of currency selloffs.

The FOMC meeting minutes were also released yesterday which also disappointed the market as the minutes did not have the expected amount of hawkishness and disappointed the USD bulls, causing the USD/CAD to fall at just under 1.3150 points. The US will be releasing its unemployment claims data today and its oil inventory data, and since there are no major news releases from Canada today, the USD/CAD pair would most likely consolidate between 1.3100 and 1.3200 points with slight bearish undertones.

[Luis ForexMart]

NZD/USD Technical Analysis: February 24, 2017

The New Zealand dollar declined in the beginning of today’s trading session. This was able to recover as it strengthens trying to reach above the 0.7250 level. It is a compelling resistance barrier that looks problematic but if we were able to break higher than the said level, the price could go up towards the 0.7350 and higher. The support level found below with 38.2% retracement level seems to be a significant psychological level. After some time, the buyers could return and dominate the market.

[Luis ForexMart]

EUR/GBP Technical Analysis: February 24, 2017

The Euro against the British pound tried to surge on Thursday trading session. It tried to test the 0.85 level. This seems to be a significant area and this could further go down. Hence, it is expected to have a choppy market which could prove the traders to wait on the sidelines. If the market is able to breakdown, the price could move towards the 0.8350 level below. A break higher than the 0.85 level could align with the 50-day Exponential Moving Average chart.

[Luis ForexMart]

AUD/USD Technical Analysis: February 24, 2017

The Australian dollar swayed within its range and break towards the 0.7750 mark. This signals a hint of resistance where a reversal is not surprising. The previous position at 0.7159 of the pair moves further as high as 0.7740. Yet, if the market breaks higher than the 0.7750 level then the market could further move towards the 0.80 level.

Under, the 0.7650 gives a significant support level. The short-term support is seen beneath the price channel on the charts. If the current rate is maintained, then the uptrend is anticipated to expand towards the following target at 0.7800 mark. The major support touched at 0.7605 level and a break over than this level implies the completion of the uptrend.

It is projected for trading to have a lot of choppiness and the price swings in the next trading session. Traders should also take into circumspection the gold market which is substantial for the AUD/USD pair.

[Luis ForexMart]

EUR/USD Technical Analysis: February 24, 2017

The Gross Domestic Product for Germany has met the expected results without any adjustments in the Q4. The GDP was able to beef up in spite of the Brexit last year. The focus is now on France’s presidential election.

The EURUSD traded with a mild bearish sentiment yesterday. The European currency highlighted the level 1.0500 however, lost its steam after reaching the mentioned level and headed upside.

Buyers were able to recover its previous losses and further send the spot back towards 1.0550 region by which the major hovered in an adrift trading amid EU session. Moving averages (50, 100 and 200) resumed a downward movement. Resistance is seen at 1.0550, support entered 1.0500. The MACD histogram increased which signaled weak position for the sellers. RSI exist in the neutral area.

The pair is confined in the descending channel. There is no more possibility for further gains. The bearish trajectory has the potential to recover shortly after the EUR touch 1.0550. Buyers should regain 1.0600 mark in order ease off the downward pressure.