Daily Market Analysis from ForexMart

[Luis ForexMart]

EUR/USD Technical Analysis: March 9, 2017

The trend of EURUSD made little changes prior to the onset of ECB monetary policy meeting. The German Industrial Production came in green which provided minor support for the European currency.

The bears continued to dominate the market on Wednesday. During the whole night of trading, the sellers persist in pushing the major lower and touching 1.0550 level in the earlier trades. While European traders struggled to break the mentioned handle.

The 4-hour chart showed the pair cut through the 50-EMA towards a lower point. The timeframe also outlined the price was situated under the moving averages and directed downwards.

Resistances landed at 1.0600, support is at 1.0500.

The MACD histogram has its seat in the centerline. An entry towards the negative zone will signal increasing strength for the sellers. The positive territory, on the other side, will indicate buyer’s control within the market. RSI hovered around the neutral territory.

Any action under the 1.0550 region would trigger bearishness to 1.0500 mark.

[Luis ForexMart]

GBP/USD Technical Analysis: March 9, 2017

The House of Lords decided to allow the Parliament to exercise a veto with regards to the management of the Prime Minister towards the European Union. This resolution made some impact to the British currency. Moreover, Theresa May has to face another difficulty with the Brexit negations.

The sterling remained flat during the Asian hours. The sellers spend the whole night accumulating strength for another support and pushed the price lower in the morning.

The spot was removed from the region 1.2200 and progress lower prior to the opening of London session. The Cable was able to hold 1.2150 amid noon trades. As mentioned in 4-hour chart, the price resumed its development under the moving averages. The 50, 100 and 200-EMAs headed downwards. Resistance is seen at 1.220, support highlighted 1.2100.

The MACD indicator decline as the sellers gained strength. RSI belong in the undervalued zone and expected to favor for a new lower trend.

Based on the current flow, a scenario where a downward movement at 1.2100 is considered.

[Luis ForexMart]

USD/CAD Technical Analysis: March 9, 2017

The Canadian dollar was able to preserve its stance compared with the US dollar yesterday. The loonie received some support from the positive figures of Trade Balance a few days ago. Investors wait with expectation for the statistics of US labor market which could establish a route for the USD/CAD.

The pair was trading flat and toggled in the middle of the Wednesday night session. The price is positioned in tight channels of 1.3400 - 1.3430 all throughout the night.

Moreover, the USD resumed its short-term bullish trajectory during the earlier trades. The major further pulled out from the 1.3400 region and rallied higher heading to 1.3470.

As rolled out from the 4-hour chart, the price was developing beyond the moving averages. It further mentioned the 100 and 50-EMAs preserved its bullish pattern while 200-EMA move over the neutral grounds. Resistance touched 1.3470 mark, support hit 1.3400.

The MACD histogram is positioned within the same level confirming buyer’s strength. RSI oscillator hovered near the overbought readings and expected to support a fresh upward movement

The bullish market structure is expected to remain in its place in the short-term. Bulls’ next target is at 1.3470.

[Luis ForexMart]

AUD/USD Technical Analysis: March 13, 2017

The Australian dollar is gaining an advantage with the depreciation of the U.S. dollar as the Aussie goes higher after a steep sell-off in the past week. This was mainly driven by the decline in the U.S. treasury yields combined with the mixed results of the U.S. Non-farm Payrolls data released on Friday.

The main trend declined in the daily chart although the impetus for the pair is about to move higher. A trade around .7632 could reverse the current trend to move upwards while a move towards the .7490 implies the continuation of the decline.

The near-term of the pair ranges between .7632 and .7490 levels with the 50% pivot level is found at .7561. It looks like the pair is moving over the pivot indicating the pair is gaining strength with the main range found around .7740 and .7490 levels with .7615 as the next pivot target.

The current psychological price is found at .7566 and the next price move in today’s session will be determined by traders sentiment at .7561 mark (50% level). If the market sustained the move higher than the .7561 level implying more buying opportunities. This could lead to an uptrend for short-term with the downtrend angle at .7592 level. With the trend directing downward, sellers could try to test again these levels and if its fails to rally, the resistance area could be settled within the .7615 and .7620 range.

On the other hand, a move lower than the .7561, this signals the dominance of sellers. The next decline could be pushed lower by tight support levels within .7451 and .7530 range. Traders should expect the price to propel downward lower than the .7530 level towards the next target at .7510 level before the last level which is the main floor at .7490 mark.

It is advisable for traders to monitor the .7561 level which would determine if the buyers are leading the market or the sellers trying to regain the strength.

[Luis ForexMart]

EUR/GBP Technical Analysis: March 13, 2017

The Euro against the British pound broke in the higher region during the Friday session, moving passed the 0.87 handle. It seems that the current pair could further go up while reversals could be translated as buying opportunities. The support region could be seen near the 0.8650 level with more prominent order flow in the region. It is expected for the pair in the next sessions to get stronger which means higher price range trading in the market. Hence, the pair positions to be stronger for near-term against other currencies.

[Luis ForexMart]

USD/JPY Technical Analysis: March 13, 2017

The U.S. dollar against the Japanese yen surged on Friday session as it breaks higher than the 115 handle. There seems to be a minor resistance but there is still chances for a breakout. It could reach higher towards the 118.50 level. There could be reversals every now and then but this could be translated into buying opportunities with the goal of long-term trading in the upper channel, driven by the Fed rate hike more than once for this year.

[Luis ForexMart]

GBP/USD Fundamental Analysis: March 13, 2017

The GBP/USD pair traded rather dismally for the majority of last week’s sessions as the concerns on the UK economy and the sudden surge in the value of the USD has kept the sterling pound under constant pressure for the rest of the week. The strength of the USD has recently been subject to fluctuations, and while it ended the week on a stronger note compared to other major currencies, for the euro and the British pound, it was otherwise. The invocation of the Article 50 is drawing nearer, and this has also led to an increase in Brexit-related concerns and has also pushed the pair down towards 1.2200 points and so far it has been unable to recover from this particular region.

A lot of analysts have been saying that any bounce in the currency pair should be seen as a short trading opportunity, and since the sterling pound is not expected to make a full recovery anytime soon and with the USD gearing up for more medium-term advancements, the currency pair would most likely feel the impact of the pronounced weakness in the sterling pound.

For this week, the UK will be releasing its claimant count change data, earnings index, as well as a rate statement and a rate announcement from the Bank of England. On the other hand, the US will be releasing its retail sales data, its PPI data and CPI data, which are all expected to inject some volatility into the currency pair. But the spotlight for this week will mostly be directed to the FOMC rate announcement, where the central bank is expected to implement another interest rate hike, which will likely be followed by a hawkish statement from Fed officials. However, it has yet to be seen whether the bank’s statement would be hawkish enough for the bulls to push the pricing of the USD upwards. If this happens, then the GBP/USD pair could possibly test 1.2000 points in the near future.

[Luis ForexMart]

USD/CAD Fundamental Analysis: March 13, 2017

The USD/CAD pair consolidated for the most part of last week’s session after breaking out during the previous week. The USD/CAD pair moved towards the 1.3500 barrier, which is the barrier that the pair bulls have been constantly trying to break through during the several previous sessions, with the pair’s last attempt to surpass this region resulting to the pair retreating significantly back to 1.3000 points. The bulls have become increasingly cautious of this particular region and this is part of the reason why the bulls have resorted to ranging and consolidating at just under this range.

Both the US and the Canadian economy released a string of economic data during the latter part of last week, with both the numbers and employment rates coming out at a much better rate than expected. This has then increased the probability of a Fed rate hike within the week and confirmed the positive economic growth for Canada. As a result, the USD/CAD pair was not subject to any drastic changes since both currencies cancelled out the other’s projected positive effects on the pair and on the market.

For this week, the US will be releasing its retail sales data, as well as its PPI and CPI data, in addition to the much-awaited announcement from the FOMC, which will determine whether the central bank has decided to implement an interest rate hike or otherwise. However, since the Federal Reserve is pretty much expected to increase its interest rates and have a hawkish statement. As such, the USD could possibly weaken following the FOMC rate announcement, a move which should be closely guarded by the USD/CAD pair.

[Luis ForexMart]

USD/JPY Fundamental Analysis: March 13, 2017

The USD/JPY pair posted impressive gains during the previous week, with the majority of the past week’s gains being attributed to the possibility of a quarterly interest rate hike by the Federal Reserve for this year. However, as Friday’s session commenced, the currency pair retreated slightly after economic data coming from the US showed that the country’s economy might not be stable enough to implement another interest rate hike immediately this coming June. The USD/JPY pair finished off the previous trading week at 114/738 points after increasing by +0.65% or 0.744 points.

USD/JPY traders had initially believed that the March rate hike was pretty much in the bag, but the release of the NFP report last Friday has shed some doubts with regards to the timing of future interest rate hikes from the central bank. In addition, the average hourly earnings came in at 0.2%, falling short of the expected reading of 0.3%.

The USD/JPY could possibly retreat in value for this week as investors start adjusting to the weak NFP report, and the closing price of the currency pair would be likely determined by the monetary policy statement from the Fed this coming Wednesday. On Thursday, the Bank of Japan is expected to maintain its benchmark interest rates and could possibly cite references on the country’s present economic environment as well as other economic factors which might impact the central bank’s policy decision. The BoJ could also state that the increase in US interest rates might be good news for the Japanese economy as this could lend added pressure to the Japanese yen which could trigger a rise in exports demand.

[Luis ForexMart]

NZD/USD Technical Analysis: March 13, 2017

The New Zealand currency gained a little of bit of strength during trading on Friday following the profit taking of the sellers, together with the greenback retracement. The investors did not take attention regarding the sluggish report of the Electronic Card Retail Sales.

Moreover, the NZD stayed in a descending channel. The spot found a stable support within the 0.6900 region. The handle stalled sellers’ activity which initiated gains consolidation. The NZD/USD had a slight recovery on Friday. Even with the positive market tone, the kiwi has been in a good offer and remained on top of 0.6900 in the morning.

As outlined in the 4-hour chart, the price extended its development under the moving averages which have seen to point lower. Resistance approached 0.6950, support plunge towards 0.6900.

The MACD indicator strengthens but signaled weak position for the sellers. The RSI is close to the undervalued readings, confirming a fresh upward trend.

In case that the pair successfully surpasses 0.6900 level, the next possible target is 0.6850 support region.