Daily Market Analysis from ForexMart

[Luis ForexMart]

GBP/USD Technical Analysis: October 3 2016

Despite of the major news reported regarding the economy of U.K, the sterling still grasp a firm position versus the greenbacks. The value for the pound bear under some pressure last 30th of September. The pair exerted to boost but was able to reach 1.3000 only. However, the buyers cannot contain its current level causing it to move back to lower level. Moving averages 50, 100 and 200 had an upsurge since the price were unsuccessful to break the 50-EMA.

Resistance is identified at 1.300, support closes its position at 1.2900. MACD had a downturn that strengthened the sellers. There is an ongoing consolidation for the RSI within the oversold territory.

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EUR/USD Technical Analysis: October 3 2016

The European currency had slowed due to the predicament that the EU bank faces. The greens also chopped down from its weekly high in defiance of the clear-cut economic releases issued by the United States, specifically financiers that are involve in the current condition of the Deutsche Bank.

Moreover, EUR/USD plunged to a 1-week low but was able to recover around the 1.1200 area. The pair stopped its movement within the 1.1250 region by which the price roll back had occurred and made a smaller quantity of pips until the closing of the day trading. The overall moving averages remained intact in the neutral position. Resistance are well set in the 1.1250 level, support ended at the 1.1200. MACD sways along the center of the histogram. If it arrived in the positive zone, it indicates the increasing strength of the buyers. In contrary, the negative territory identifies the ability of the sellers to drove the market. RSI settled in the oversold position.

[Luis ForexMart]

EUR/USD Technical Analysis: October 4, 2016

The EUR/USD pair hit all-new lows after succumbing to pressure during the New York trading session as the US dollar received a boost from positive US economic data. The EUR/USD pair was able to break through its range from the past session and was able to approach the 1.12 trading range but also managed to have support just a few pips beyond the psychological level.

September saw the ISM Manufacturing Index increase by up to 51.5 points from August’s 49.4 points. The ISM index also went into the contraction range for the first time since February and went above the expected 50.3 range. Market sentiment surrounding the Deutsche Bank issue also somewhat stabilized during Monday’s session even as the German market was closed due to a holiday. European indices also increased due to an upsurge in oil prices.

Technical support levels, particularly immediate support levels, are seen at 1.1183 points in the 100-day SMA, 1.1160 in the 200-day SMA, and 1.1122 points at the September and August lows. Resistance levels are at 1.1250 points for the September highs, 1.1283 points for the September 15 high, 1.1326 for the September 8 high, and 1.1365 for the August trading high.

[Luis ForexMart]

GBP/USD Technical Analysis: October 4, 2016

The sterling pound was hit hard during the last trading session after UK Prime Minister Theresa May released a statement saying that the UK will be starting its formal process of leaving the European Union this coming March 2017. The GBP/USD pair is aligned fundamentally and technically, and analysts are expecting a retesting of the pair at 1.2796 points. The currency pair is now in full bearish stance.

The GBP/USD’s inner trend line, bearish channels, 38.2, L3, and multiple rejection points at POC 1.2915-30 might cause the pair’s price to become rejected if another retracement occurs. However, if the GBP/USD would extend at the 1.2845 trading range, then there is a possibility that the pair would go beyond the 1.2796 trading range.

In order to maintain its short-term bearish stance, then the currency pair must be able to stay below the 1.2950 trading range.

[Luis ForexMart]

Technical Analysis for USD/JPY: October 4, 2016

The USD/JPY pair surged to attain its two-week high of 102.27 points as a result of positive risk appetite after easing Deutsche Bank issues and OPEC oil statements increased the possibility of an interest rate hike in December.

Meanwhile, the Japanese yen is still in the bottom rung of its trading range for the sixth straight session, its longest bottom-trend streak since March. The currency pair bottomed out at the 100.08 range last week after an increase in oil prices market risk-ons, as well as easing in Deutsche Bank concerns.

Moreover, the Japanese yen is most likely to increase its selling power in the Asian session today after foreign QE talks by the Bank of Japan is seen to be gaining momentum. The currency pair is now dependent at the wider market sentiment. The market will now be focusing on the shares of banking firm Deutsche Bank, which has previously ended Monday’s trading session with marginal losses.

If the USD/JPY pair manages to break above the 102.65 trading range, then this would expose the pair to the 102.78 range and go beyond an expected hurdle at 103.54 points. However, if the pair would go below its support levels of 102.00, then this could trigger a movement towards 101.57 points, which would then lead to lows at 101.00 points.

[Luis ForexMart]

USD/JPY Fundamental Analysis: October 4 2016

On Monday marks the fifth time that the greens earned larger against the yen while USDJPY have ended its route at 101.635. In addition to it, the Japanese currency had been barely affected to the Tankan survey conducted by the Bank of Japan. The economic assessment notified that the confidence level of the leading Japanese manufacturers have laid low from July to September while the service-sector sentiment fall off for almost two years while dealers have been affected also as the economic data were publicized last week.

The statistics bureau of Japan declared that there is an inflation ongoing in the core consumer price by 0.5%. The changes became apparent during the month of July.

The greenbacks have increased due to the positive report finalized by the U.S ISM Manufacturing PMI with an estimate score above the 50.4 to 51.5 compared to previous month with an average below 50.0 to 49.4. Due to the U.S. Construction Spending report, the USD were able to limit its profit seeing that the data came below at 0.7%.

Major economic news are not yet available in the U.S as of today, causing the pair to be determined as an in-demand assets for the investors. The improvement made in the Asian and European stock market have resulted for a stronger pair for the financial sector of the United States.

Nevertheless, it is recommended that capitalist should be very cautious in acquiring yen and greens due to the issues concerning the market sentiment preceding the U.S. Non-Farm Payrolls report to be issued on Friday.

Additionally, the status of the crude oil should also be watched over since prices were accelerating that might originate a pressured area for the USD by which the yen will support.

[Luis ForexMart]

EUR/USD Fundamental Analysis: October 4 2016

Yesterday, the pair euro and dollar had subdued since the market's focus is leaned against the GBPUSD. In view of the movement yesterday, EUR remained unnoticeable but this instance gave the euro to avoid tough routine.

The pair continued to aim in reaching a higher range around 1.1245, however remained unsuccessful once again, resulting for a desolate gains and moved into the 1.1200 range. Moreover, the pair persists on a tight range close to 1.1207. Support sits at 1.1200 and 1.1245 is where the resistance stays.

Major news related to economics of the Euro region has not been released making the pair to be regarded as safe. Volatility is not included on the terms to look after because it is not expected until the release of the NFP on Friday. This report indicates the strength of the US economy plus it will provide some pointers whether or not there is a rate increase for the current year. Regardless of the result, the euro is seen to achieve more progress.

[Luis ForexMart]

USD/CAD Technical Analysis: October 4 2016

The current situation of the oil prices reinforced the entire commodity currencies inclusive of the Canadian dollar. Bearish investors attempted to regain their authority to manage the overall market.

During the Asian session the pair exhibited a neutral position. Upon the outset of the European hours, it fell into the selling pressure.

Sellers broke the 1.3100 level but did not stayed there for long. The price bounce off at the 1.3070 region. As seen in the 4-hour chart, the price is accelerating towards the 200-EMA by which the pair passed through the 100-EMA and attempted to reach the 50-EMA.

Resistance arrived at the 1.3200 mark while reaching the 1.3100 identified as the support. MACD had demonstrated the same activity as yesterday's result and affirmed the seller's strength. RSI falls in the neutral position as well.

USDCAD seems bullish and speculated to have an increase reaching the 1.3200 level.

[Luis ForexMart]

Fundamental Analysis for EUR/USD: October 5, 2016

The EUR/USD pair had increased volatility levels and was able to break through the small-scale trading range and went through the larger-scale trading range of 1.1145 and 1.1245 points. The early part of the trading session saw the USD gaining strength after it lost a significant amount of its value last week. The euro was also able to break through its previous support levels of 1.1200 to gain new support levels of 1.1145 before going as low as 1.1137 points. The EUR/USD pair was also affected by the news that the ECB is currently studying the tapering of the QE.

The EUR/USD went back at 1.1200 after the ECB rumors and went as far as 1.1238 before another headline was released, saying that this particular rumor with regards to the QE was not discussed in any of the ECB’s meetings, prompting the currency pair to go back down at 1.1200 points.

This highly volatile movement of the currency pair is a positive sign for traders who are currently looking for market volatility. The market is currently not expecting any major news announcements from the EU, with the US ADP Non-Farm Employment data the only announcement expected from the US market. The ADP data will act as a precursor for the NFP announcement on Friday which is expected to provide a useful insight on the current state of the US economy.

[Luis ForexMart]

Fundamental Analysis for USD/CAD: October 5, 2016

The recent increase in value of the USD has caused certain currency pairs like the USD/CAD to move forward with their bullish runs, a move that has long since been anticipated for the currency pair during the past week. The USD/CAD pair was able to push through its resistance levels at 1.3140 points, even going beyond 1.3170 where it was met with marginal resistance and went with support levels after a gain of 1.3140 points.

The Canadian and US trading sessions saw the USD increase its value by a significant margin and has caused the USD/CAD to go through the 1.3200 trading range, and market players are expecting that the pair will be able to reach its short-term targets at 1.3240 and 1.3280 with relative ease in just a few days. The currency pair is now at the support level of 1.3173 but is still expected to go above its present trading range.

Market players are now awaiting the release of the Canadian trade balance data and the ADP Non-Farm Employment data from the US. These economic data should give traders an idea of the relative strength of the two economies, as well as the possible impact of lowered oil prices on both countries. This could then lead to an increased volatility towards the end of the next trading session.