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GBP/USD Technical Analysis: August 2, 2017

Postby Andrea ForexMart » Wed Aug 02, 2017 6:02 am

There is high volatility during the Tuesday session as it reached the 1.3250 level but was reversed later on. It seems that the 1.32 level is being supportive as the trend proceed moving higher.

A break lower would push the market for a support towards 1.3150 level then to 1.31 level. The British pound is going to be sensitive to a lot of noise which is anticipated as amid the negotiations from the European Union and the United Kingdom. Hence, traders should be cautious of the of any abrupt changes in this pair.

The bullishness could persist for the long term. Although, this has been quite extended in the present time. A pullback opens more opportunity to make use of the current value. The market could target for a 1.3450 level above which the peak of the consolidation for the past few months.

However, if the market successfully gaps higher than the 1.3450 level, the next retest would be at 1.35 handle. A breakout would mean large bullish tone but it will not be long before the currency starts to rally once again. There will be high volatility from the start until this period ends.
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GBP/USD Fundamental Analysis: August 3, 2017

Postby Andrea ForexMart » Thu Aug 03, 2017 4:04 am

The main focus for today will be on the sterling pound as there are an expected economic releases and other data from the United Kingdom for this day. We await for the UK inflation hearings along with the rate announcement of the Bank of England to be issued. Also, BOE Governor Mark Carney will conduct his speech, therefore these events would likely cause high volatility for the GBP/USD.

The central bank of England was hawkish during their last meeting which led few markets to think that rate hike is possible sooner or later. There are three BOE members who agreed for a rate increase which triggered confidence for some markets, however, this only accounts a small portion of the market because the majority still believes that the bank will maintain its benchmark.

This is considered a logical approach regarding the continuous financial circles of Britain which could be a turmoil caused by the Brexit procedures. Moreover, a lot of things remain unclear, particularly the results of the referendum process in determining if it will a soft or hard Brexit. Due to many uncertainties, it is absurd for the BOE to make an increase and most likely, they want to see first the effect of the Brexit negotiations prior making such decisions.

The pound-dollar resume to consolidate yesterday and the range near the highs of its range are expected for this very important day. In case that the BOE decided to kept rates steady, the Cable is anticipated for further correction. The 1.3250 level serves as the ceiling at this moment.


GBPUSD03.png
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EUR/USD Technical Analysis: August 4, 2017

Postby Andrea ForexMart » Fri Aug 04, 2017 2:58 am

The results of the European yields were mixed as it restricted the uptrend of the euro which signifies that Draghi has successfully kept the rates low. The ECB sees the need for the continuous support because of the less than expected result of the PMI. The European retail sales set in stronger than anticipated but this was countered by high jobless claims.

The EUR/USD was not able to surpass yesterday’s range but was able to increase the support level. Nevertheless, the trend persists to be positive with the support close to the 10-day Moving Average at 1.1747. The resistance level is seen close to the weekly highs at 1.1910.

Overall, the momentum is optimistic with the MACD histogram shown a black indicator with an upward sloping direction that could lead to a higher exchange rate. The RSI positioned higher with the price indicating a positive momentum upward. Currently, the price is set at 77 which is higher than the trigger level 70 to enter the overbought area. Hence, a correction is possible to occur.


EURUSD04.png
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EUR/USD Technical Analysis: August 8, 2017

Postby Andrea ForexMart » Tue Aug 08, 2017 4:14 am

The US payrolls data came in stronger than expected on Friday which buoyed the greenbacks and reacquires some of its gains yesterday. The German Industrial production unexpectedly declined but was able to maintain the single European currency.

The move made by the administration of Donald Trump relative to tax incentives help the dollar to bolster and must sustain the interest rates.

The inflation in the eurozone and the United States is expected to be released on Friday, this further support trader to determine whether growth will overrun inflation outlook.

The EURUSD edged a little bit higher yesterday and bounced off the support at 1.1774 region near the 10-day moving average. The resistance entered the 1.1910 level around the highs last week.

The momentum of the euro-dollar pair became negative while the MACD histogram developed a crossover sell signal. This appeared due to the spread that crosses under the 9-day moving average of the spread. The indicator jumped from positive to negative zone and confirmed a sell signal. The index prints in the red with a descending trajectory pointing to lower prices for the EURUSD.
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EUR/USD Technical Analysis: August 10, 2017

Postby Andrea ForexMart » Thu Aug 10, 2017 5:37 am

The Euro against the U.S. dollar moved sideways during the Wednesday session and consolidates higher than the 1.17 level. If a breakout occurs higher than the 1.1765 level, the trend goes climb higher.

For long-term, the trend has not successfully declined enough to sustain the level. There have been two impulsive moves headed downward and there is a chance for this to further decline. If a breaks down lower than the 1.1680 level, the price could further go down towards 1.16 level.
There is significant volatility in the market as it abruptly moves sideways and adjusted higher or lower as traders have made an unexpected move. During this time of the year, there is usually low liquidity since most senior is a holiday in big trading desks. Hence, this leaves the market a bit dormant.
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