Daily Market Analysis from ForexMart

[Andrea ForexMart]

Fed’s hawkish sentiment evident in its FOMC meeting minutes released last week fairly strengthened the dollar against other currencies even the reasonably strong NZD. We can see that the buying interest in the NZD/USD will stay in the near term.

The pair is trading at 0.6797 in Wellington. Volatility is expected on Thursday as the New Zealand government announces the annual budget which include a possible revised inflation forecast. Data released last week showed that inflation was at 1.6 percent.

The first support is at 0.6716 and 0.6594 while the first resistance is at 0.6823 and 0.7054 subsequently. The MACD indicator is in negative location. The price is rising.

[Andrea ForexMart]

A slew of hawkish statements from Fed officials weighed in on the EUR/USD, paired with the Germany’s disappointing manufacturing PMI.

Philadelphia Fed President Harker and St. Louis Fed President Bullard said that a June rate hike is “appropriate” given the US’ strong economic data. An increase will also allow Fed enough space to lower it should financial instability hit the country. The two officials said that more rate hike is possible next year if favorable US data continue.

Meanwhile, Germany, the Eurozone’s biggest economy, reported a lower slower manufacturing PMI growth. The latest release grew by 1.3 percent year-on-year, similar to the previous month’s 1.3 percent. Economists forecasted a 1.6 percent rise. The pair is now trading at 1.1185, topping at 1.1706 in earlier session. The first support is at 1.1067 and 1.0937 subsequently. The MACD indicator is in a negative position and the price is declining.

[Andrea ForexMart]

NZD/USD is receiving downward pressure from rosy US data, shrouding a similarly upbeat trade data from the kiwi dollar.

New Zealand’s trade balance in April amounted to $292 million from the previous month’s $117 million, beating the forecast $60 million by leaps. This is due to exports of $4.30 billion, a 10 million increase from March’s $4.20 billion, while imports were down to $4.01 billion from $4.09 billion.

Home sales in the US is the highest in eight years, with 619,000 more houses sold from the previous month’s 531,000. Only 523,000 were expected in April. This is a 16.6 percent growth from a decline of -1.3 percent in March.

Increasing talks about a Fed rate hike in June is also boosting the buying interest around the USD, sending the bears toward the bird. As the market digests Fed officials’ hawkish statements on Monday, a bearish outlook on the NZD will remain.
The first support is at 0.6716 and 0.6576 while the first resistance is at 0.6823 and 0.7054. The spot exchange is currently 0.6754.

The MACD indicator is in negative location. The price is rising.

[Andrea ForexMart]

The Bonds market visualized an increasing optimism as the 10-years German government bonds yield increased which also heightened the charm of the European assets. The center of the attraction was the Economic Sentiment in May (the ZEW Institute). The index aggressively decreased which weakened the euro wherein the data came in at 6.4 against the expected 12.0.

The first support occurs at 1.1130 and at 1.1070 subsequently. The first resistance lies at 1.1200 and at 1.1250 subsequently.

An inveterate and a solid sell signal has been found. The price is below the Ichimoku Cloud and it is below the Chikou Span. The Tenkan-sen displays a descending movement and the Kijun-sen forms a horizontal movement. This activity will remain until the price is below the Cloud.

The MACD indicator is in a negative location. The price is declining.

[Andrea ForexMart]

The decreasing doubts regarding the result of the referendum cause the pound to come nearly to its high for the week. The volume of Brexit opponents is 55% against 42% who want to exit the EU, according to the recent poll.

The first support occurs at 1.4670 and at 1.4560 subsequently. The first resistance stands at 1.4760 and at 1.4880 subsequently.

An inveterate and a solid buy signal has been found. The price is over the Ichimoku Cloud and it is on top of the Chinkou Span. The Tenkan-sen ascends in movement and the Kijun-sen displays a horizontal movement creating a "Golden Cross". This activity will remain until the price is over the Cloud.

The MACD indicator is in a positive location. The price is growing.

[Andrea ForexMart]

In the midst of positive economic forecasts, the dollar reinforced its positions. As stated by the Fed, the US regulator may heightened the rates at its conference this coming June. Meanwhile, in the economic news, the United States presented the Initial Jobless Claims wherein the volume appeared at 268,000 against the report of 275,000.

The euro was bolstered by the agreement happened between the Eurozone and the Greece. The latter attained an agreement with its creditors and shall take a new tranche of loans in the amount of 10 billion euro.

It has been inveterated that the recoupment of the British economy became sluggish by the second Gross Domestic Product estimate for the first quarter in the UK. The economy showed a growth by 0,4% in the first quarter from 0,6% in Q4 2015. The economy of Britain encountered a difficulty with a devitalized growth in emerging markets particularly in China. The approaching referendum also decelerated the growth.

The dollar stick around in a range waiting for the statement of Janet Yellen. The market is anticipating hints from the regulator about the probable rate hike in June. The yen raised and bereaved the dollar from its recent gains. The investors involuntarily close positions before there are any probable risk that may occur.

[Andrea ForexMart]

The yen deprived from growing on Thursday. But as the corporate services price index grew, it heightened precociously. And as presumed, the Corporate Service Price index grew by 0,2% y/y. The USA presented the Durable Goods Orders wherein the data showed 0,4% against the expected 0,3% and Initial Jobless Claims which showed 268,000 against the report 275,000.

The first support occurs at 109.00 and at 108.20 subsequently. The first resistance stands at 109.80 and at 110.60 subsequently.

The price is in the Ichimoku Cloud and it is over the Chinkou Span. The Tenkan-sen and the Kijun-sen form a horizontal movement creating a "Golden Cross".

The MACD indicator is in a neutral location. The price is consolidating.

[Andrea ForexMart]

AUD/USD is taking a beating after Fed Chairwoman Janet Yellen said that a rate hike is “appropriate in the next coming months,” fueling speculations of a rate hike in June’s monetary policy meeting.

Bears are surrounding the Australian dollar as high it loses steam, trading at 0.7175 from last week’s 0.72 level. The MACD indicator is in neutral position.

The first support occurs at 0.7065 and 0.6827, while the first resistance occurs at 0.7243 and 0.7331 subsequently.

The pair is in for a volatile ride this week with a deluge of data coming from both sides. Australia’s Company Gross Operating Profits slowed down again to -4.7 percent in the first quarter after sliding by 3.6 percent in the fourth quarter of 2015. This indicates weakening profits of private firms.

New home sales in April declined by 4.7 percent from the previous reading’s 8.9 percent increase. The country’s current account and number of building approvals will follow today, while trade balance, retail data, and GDP will be released on Tuesday.

On the greenback’s side, consumer confidence and Core CPE Price Index will start the week of significant volatility, trailing to manufacturing PMI and nonfarm payrolls in the later part of the week. Several Fed officials are also scheduled to deliver speeches.

[Andrea ForexMart]

Upbeat data from Eurozone’s two biggest economies helped cushion the blow of a firming USD against the Euro as the bloc currency records session highs, although the pair is still underperforming.

Preliminary CPI of Germany, the EU’s largest economy, was in line with the forecast 0.3 percent growth from the previous reading’s decline of 0.4 percent. France, the second largest, recorded a higher-than-expected 0.6 percent GDP for the first three months of the year, beating the 0.5 percent expectations.

The Eurozone Economic Sentiment report also showed that consumers have a positive outlook on the economy. It printed 104.7 points in May, up from 104.0 last month.

However, these are not enough to offset the bulls surrounding the USD after the Fed Chairwoman herself said that a rate hike is appropriate given the US’ economic conditions.

The pair is now trading at 1.1149, peaking at 1.1156 in early European session. The first support is at 1.1067 and 1.0937 subsequently. The first resistance is at 1.1215 and 1.1357 subsequently.

The MACD indicator is in negative position. The price is rising.

[Andrea ForexMart]

This week's primary event would be the conference of the ECB in the Eurozone. There are assumptions that the European regulator will leave its monetary policy unchanged.

The currency pair tried to regain on Tuesday. The resistance occurs at 1.1200 while the support stands at 1.1130.

The MACD indicator is in a negative location which signifies to sell. Meanwhile, the RSI is in a neutral zone which does not provide clear signals.