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GBP/USD Fundamental Analysis: January 5, 2017

Postby Andrea ForexMart » Thu Jan 05, 2017 5:57 am

The GBP/USD significantly increased in value during the previous trading session after the USD dropped following the release of the latest FOMC meeting minutes. The market was somewhat docile during the rest of yesterday’s session but immediately picked up after the release of the minutes during the North American session yesterday, and has caused the USD to undergo corrections across the board.

However, the reaction of the GBP/USD pair to this phenomenon is somewhat docile compared to other USD-related currency pairs, and this is expected to keep the bulls on their toes. Initially, the GBP/USD pair was expected to rise exponentially since the UK construction PMI data clocked in a highly positive reading and exceeded its market expectations of 54.2, and the FOMC minutes lacked the expected hawkishness from the market. But the reason why this currency pair’s growth was significantly limited is that the various risks and uncertainties surrounding the Brexit process continues to dog a lot of traders due to the general confusion within this issue. This is why a number of speculators are saying that the GBP/USD would be receiving the shorter end of the stick once the USD regains its strength.

Although the UK is not expected to release any economic data for today, the US will be releasing a number of important economic data along with the highly essential NFP report, which is expected to determine the overall market sentiment for the rest of the month. If these set of data comes out as positive, then the USD could possibly rebound and could be sustained until the end of January.

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USD/CAD Fundamental Analysis: January 5, 2017

Postby Andrea ForexMart » Fri Jan 06, 2017 5:28 am

The USD/CAD pair exhibited a significantly large correction during yesterday’s trading session after the USD lost some of its value due to the absence of a hawkish undertone on the minutes of the FOMC meeting which was released yesterday. The USD/CAD only weakened further since it had already failed to reach the higher trading regions. The USD/CAD pair is now sitting just over the 1.3300 trading region.

Since oil prices have been generally positive during the past few days, the market expects that its effect would be felt in the current value of the CAD as well, and true enough, the currency pair dropped yesterday while the market went into a lull. The Canadian dollar then extended its losses after the release of the FOMC minutes, which triggered the weakening of the USD and therefore increased the downward pressure on the USD/CAD pair.

There are no major economic news releases from the Canadian economy for today’s session. However, the US is expecting to release a number of major data, including the Unemployment Claims data, and the ADP employment report. These data are determinant of whether the market would experience added volatility or otherwise, depending on the readings. The US will also be releasing the NFP report tomorrow, which is considered as a critical determinant of market volatility. Traders are encouraged to evaluate the effects of these news releases on the currency pair before trading in on the USD/CAD.
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EUR/USD Fundamental Analysis: January 5, 2017

Postby Andrea ForexMart » Fri Jan 06, 2017 5:51 am

The USD has been exhibiting corrections across the market during the start of today’s trading session, causing the EUR/USD pair to break through 1.0500 before eventually settling at 1.0525 points, with the outlook for the currency pair looking generally positive for today’s session. The market is expected to go through a lot of market volatility during the next few days since there are a number of major economic news releases set to be released in the coming days. However, it is still unclear whether the USD would be able to sustain its corrections in the next few days.

Since there were no economic data released during the first few hours of the previous trading session, the market has shifted its focus on the minutes of the FOMC meeting. Once the minutes were released, however, the USD sustained damages since the minutes did not have any clear hawkish stances. This has caused the EUR/USD to hit 1.0500 and then went even lower as the USD quickly recovered. The currency pair has since then been regaining its footing after the USD lost some of its strength.

For today’s trading session, the major economic news releases include the ADP Non-Farm Employment Change data, a precursor to the NFP data which is set to be released during tomorrow’s trading session. The Unemployment Claims data as well as the Non-Manufacturing PMI data will be closely monitored by the majority of market players, since these are expected to continue the generally positive economic trend seen in the US lately. A positive reading from this particular set of data could also become determinants of whether the next interest rate hike from Fed would come earlier, therefore increasing the frequency of hikes. However, if the data comes out as negative, then the USD could be subject to more corrections prior to the release of the NFP economic data.

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NZD/USD Technical Analysis: January 9, 2016

Postby Andrea ForexMart » Mon Jan 09, 2017 4:03 am

The kiwi expand its recovery against its U.S peer during the middle session of Asia. Meanwhile, the NZD/USD is unable to move further the 0.7050 level and bounce back after it touched the aforesaid level.

During the EU session, the pair remained in a tight range that lies in the middle of 0.7000 and 0.7030. Another session of selling interest drove the New Zealand dollar downwards prior to the opening of the NY trades.

The price had a steep decline towards the 0.7000 range and extended its losses. According in the 4-hour chart, the price pushed the 50 and 100-EMAs higher and the 200-EMA was tested. It continued to struggle together with the neutral 200-EMA in the course of the EU hours. Moreover, the 50-EMA ascended, at the same time the 100-EMA moved southwards. Resistance touched the 0.7050, support is seen at 0.7000.

The indicators en route north around the bullish zone. The MACD histogram increased, favoring buyer’s strength. The RSI lies in overvalued territory.

The technical represents a bullish momentum. A The technical picture presents a bullish tone. A rapid price decline on top of the 0.7050 impedes the increase within the 0.7100 resistance level.
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GBP/USD Technical Analysis: January 9, 2017

Postby Andrea ForexMart » Mon Jan 09, 2017 5:45 am

There is no major economic news anticipated in the United Kingdom last Friday. While the data from U.S affected the market as traders awaits for the figures of trade balance and labor data.

After it reached the 1.2430 level in the Asian session, the GBP/USD weakened and shifted downside. The British currency returned to the support region 1.2400 where it met a stable support during the morning trades.

The cable pair extremely toggles in a narrow range amid EU session waiting for a renewed stimulus. Furthermore, a selling interest arises before the onset of the NY trades as it pushed the pair downwards.

As shown in the 4-hour chart, the price drove the 50 and 100-EMAs higher. The pair remained in the middle of the neutralize 200-EMA and bearish 100-EMA in the earlier trading. Resistance entered the 1.2400, support touched the 1.2300 region.

The technicals had a moderate reversal from the overbought zone. The MACD indicator traded in the downside. The RSI stayed around the overvalued readings.

In case the GBPUSD breakout within the 1.2400 resistance level upon the establishing of buy orders, the price recovery may extend through the marks 1.2450 and 1.2500. However, a negative signal and further risk easing would emerge when a movement push through the 1.23 level. Furthermore, sellers were able to send the pair towards 1.2200.

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USD/CAD Fundamental Analysis: January 9, 2017

Postby Andrea ForexMart » Mon Jan 09, 2017 6:09 am

The USD/CAD has recently been in a reticent mood during the past few trading sessions, and analysts are speculating that the USD/CAD pair could possibly be in for a good trading session since oil prices have now become buoyant and is expected to remain buoyant since the cutbacks in the production of oil are expected to be implemented anytime soon, thereby spelling good news for the Canadian dollar. The Canadian trade balance data as well as the employment change data also came out exceeding initial investor expectations, and this means that the CAD would be receiving substantial support both in the long term and short term, and the Canadian dollar’s value could be well on its way to increasing.

In a much more normal market setting, a scenario such as this would automatically lead to a correction in the USD/CAD. However, the USD is also gaining strength alongside the CAD, and this is expected to offset if not completely counter the effects of the recent rise in the value of the Canadian dollar. This situation is then expected to keep the pair within a tight trading range in the short term period. Friday’s session was a testament to this scenario, as the currency pair made a short drop at 1.3200 points but immediately went up above 1.3200 after the release of the economic data from the regions before finally settling just below 1.3250 points. There are no expected economic data to be released from both the Canadian and US economy for today, and this could help the USD/CAD to extend its gains towards 1.3300 points.
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GBP/USD Fundamental Analysis: January 9, 2017

Postby Andrea ForexMart » Tue Jan 10, 2017 1:08 am

A lot of analysts have been initially saying that the GBP/USD pair will be the currency most likely to experience the majority of the adverse effects of the recent surge in the USD’s value, especially since there is a lot of confusion and discussion going on with regards to the provisions of the Brexit process, particularly with its stakeholders, who all have to step up their game in the next two years. This is why the GBP/USD pair has recently become more susceptible than ever, and traders are advised against selling any bounces in the GBP/USD pair. The downward trend in this particular currency pair is very evident, since its bounces have been very few and far in between, with deep corrections dogging the pair’s direction.

Friday’s session proved this particular downtrend in the pair, since the market has seen the currency pair stop its consolidation and plummeted through 1.2400 points and eventually through 1.2300 points. The NFP report as well as the average wages data from the US also came in last Friday, with the data showing an increase in average wages, thereby increasing chances that the Federal Reserve would be soon stating its next interest rate hike. The Scottish Prime Minister has also released some comments over the weekend, saying that Scotland would most likely undergo yet another vote with regards to “Scexit”, or Scottish independence from the UK. During the controversial Brexit vote, it can be recalled that Scotland initially voted to remain in the European Union but eventually had to concede after majority of the UK states voted to “exit” from the EU. This is only one the many issues surrounding the Brexit process, and will be incessantly putting the sterling pound in great risk.

There are no major economic data expected today from both the UK and the US, and the market is expected to be continuously dominated by the existing market trends for today’s trading session,and the USD strength is expected to be the driving force behind the market for today.

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EUR/USD Fundamental Analysis: January 9, 2017

Postby Andrea ForexMart » Tue Jan 10, 2017 4:11 am

The EUR/USD pair traded in a muted fashion and exhibited ranging and consolidation after falling slightly from its original value following the release of the NFP report as well as US earnings report last Friday. The NFP report fell somewhat short of its initial market expectations. However, the US wage earnings increased significantly, thereby compelling the market to shift its focus instead on the wage earnings data.

The January report for the average wages data has spelled good news for the market, since it generally shows that more and more people are now able to sustain themselves, and would still be able to do so even if the Federal Reserve chooses to again increase its interest rates as needed. This has caused the USD to regain its losses, with the EUR/USD pair losing its ability to maintain its stance over 1.0600 points and has since then went below 1.0550, where it is still currently situated. Analysts are speculating that the strength of the USD would continue to surge for today’s trading session.

There are no major economic news releases expected from both the US and the European Union for today, and this means that the current market trends are expected to continue dominating the economy for today. The USD is expected to continue storming through the EUR/USD pair’s trading activity for today, even though this particular currency has exhibited unwavering strength over the past few days. This currency is expected to remain subjected to downward pressure for the rest of today’s session, and this could possibly induce the pair’s direction to move towards 1.0500 points.
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USD/CAD Technical Analysis: January 10, 2017

Postby Andrea ForexMart » Tue Jan 10, 2017 5:26 am

The commodity-linked Canadian currency moved back as the dollar strengthened and oil prices declined. A bearish bias prevailed on Monday. The price tried to recover however, the 1.3260 hurdle prevents it to continue.

Upon reaching the aforementioned level, the greenbacks rebounded from the barrier and progress towards the 1.3190 region afterward.

The price continued to develop under the moving averages as indicated in the 4-hour chart. Shown in the same trading chart, the 50-EMA extended over the 100-EMA downwards. Moreover, the 50 and 200-EMAs maintained a lower position while the 100-EMA held an upward direction. Resistance lies at 1.3260, support entered the 1.3190. The MACD indicators improved which confirmed weak seller’s position. RSI hovered in the oversold readings.

The bearish sentiment is preferable to dominate as of now, another downtrend is further expected. The next target of the sellers are 1.3120 and 1.3190. The USD/CAD is able to bounce off its losses supposing that it breaks the 1.3260 handle upwards so it can reached the 1.3330 region.

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GBP/USD Technical Analysis: January 10, 2017

Postby Andrea ForexMart » Wed Jan 11, 2017 1:00 am

As the week starts, the British currency was marked red. The GBP/USD softened due to rising concerns about Hard-Brexit. However, the price index of Halifax provided minor support for the pound because the House Prices published a higher than expected results. Meanwhile, sellers consistently manage the overall market on Monday.

The sterling had a downward price break during the daily trades opening as it promptly spread its weakness until the 1.2200 level.

After the pair reached the level, the pressured area continued to fade while the pair advance towards the consolidation phase. However, the consolidation was short-lived making another bout of selling pressure which drove the Cable to the 1.2100 area.

A downward momentum further faded with some pips on top of the 1.2200 handle after it touched the 1.2123 mark, the price rebounded and lessened the amount of their losses.

The 1-hour chart showed that the sterling lead the moving averages towards a lower point, seeing the 50-EMA descended while 200 and 100-EMAs are trending flat. Resistance took the 1.2200 range, support entered the 1.2100.

The MACD indicator jumps into the negative zone. In case the histogram hovered in the negative territory, sellers will strengthen. The RSI stay close to the oversold condition, indicating another lower movement.

As shown in the 4-hour chart, the bearish bias will prevail. Sellers were able to come at 1.2100 level in the near-term, heading to 1.2000. There is still a possibility for the GBPUSD to make an attempt in reclaiming the resistance regions 1.2200 – 1.2230.
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