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EUR/USD Technical Analysis: May 3, 2017

Postby Andrea ForexMart » Wed May 03, 2017 2:59 am

The EURUSD remained steady on its position as it trades in a comparably tight range regardless of the massive data from the European region such as unemployment and PMI.

While the agreement made in Greece together with IMF and EMU is expected to maintain the pair in a higher stand.

While central bankers were on the news and brought challenges towards Mario Draghi in pursuing a dovish sentiment. The pair extends its consolidation on the first day of Europe’s long weekend and created a bull flag pattern which serves as the pause to stimulate.

Traders are anticipated to postpone its action prior to the U.S Non-Farm Payrolls scheduled on Friday or the fulfillment of second-round election in France preceding the major to reach its renewed highs.

Resistance lies at 1.0955 close on its previous week’s high while the support came in at 1.0843 next to the 10-day moving average.

The momentum kept a favorable stance since the MACD were printed in black along with an upward sloping path reflected in the histogram. This event had influenced to the advancing positive trajectory pointing to a greater exchange rate.

An upward trend of the Relative Strength Index is seen at 67 posted on the upper side of the neutral range.

EURUSD03.png
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NZD/USD Technical Analysis: May 3, 2017

Postby Andrea ForexMart » Wed May 03, 2017 7:13 am

The New Zealand dollar against the U.S. dollar was traded with high volatility during the Tuesday session. The pair consolidated higher than the 0.69 handle that is a significant psychological level. It is traded in a very tight trading range with highs around the 0.6935 level and it is apparent that there is not much changes in the trading activity. It may not be practical to go long on this pair as it cannot be predicted is the 0.69 level will be sustained. For now, it is best to short this pair and be prepared for choppiness in the market. Another option is just to wait in the sidelines although the next move higher than the 0.6935 level could indicate a short-term bullish.

A break lower than the 0.69 level could move the pair towards the 0.6850 mark in the lower channel that is being supportive enough for the pair. Traders could wait in the sidelines until this pair stabilizes as it continues to move downward although this is still uncertain as seen in the forming trading sessions.

A breakdown in the current psychological level could push the price lower towards the 0.65 handle but could take place in a longer period. The pair opens selling opportunities as seen in the short-term charts but traders should still be cautious as it might fluctuate unexpectedly or wait afterwards.
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EUR/USD Fundamental Analysis: May 4, 2017

Postby Andrea ForexMart » Thu May 04, 2017 3:30 am

The USD had a very positive trading session yesterday as a result of a positive economic dollar-related news. This then helped the dollar to eclipse the value of other currencies, and the EUR/USD pair was no exception. The currency pair had started out yesterday’s session on a somewhat slower pace as the market anticipated the release of important economic readings and had spent the majority of yesterday trading within its range highs. However, as the said financial data started coming in, the dollar was able to capitalize on this slew of good news and prop itself up higher, putting significant downward pressure on the currency pair which is now trading at just under 1.0900 points.

The first bit of good news came in the form of the ADP employment report, which surprisingly came out as expected, considering the fact that last month’s NFP report had failed to meet market expectations. Up next was the manufacturing report which also came out as positive, and this increased the USD’s value even more. However, by this point, the dollar was still somewhat at par with the value of the euro since the market chose to standby for the release of the FOMC meeting minutes. The said minutes were released halfway during the NY session, and since there was no accompanying press conference the market had no choice but to pick on the results of the minutes itself. The Fed did not give any indication of the schedule of the next rate hike, however it pointedly ignored the somewhat tame economic growth in the Q1, which the market took as a signal that the central bank might be preparing for another June rate hike. This triggered a dollar buy which pushed down the EUR/USD pair towards under 1.0900 points.

As of this point, the market is starting to price in a June rate hike although there are still no definite hints as of the moment. For today’s session, the market is expecting the release of the US unemployment claims data while Draghi will be speaking during the latter part of the NY session. There is little volatility expected today as the NFP report is due to be released tomorrow. The EUR/USD pair is expected to trade with bearish undertones for the rest of today’s sessions.

EURUSD04.png
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GBP/USD Fundamental Analysis: May 4, 2017

Postby Andrea ForexMart » Thu May 04, 2017 4:56 am

The GBP/USD pair was unable to move past its resistance level of 1.2950 points, causing the pair to retreat under this region where it is currently situated. The construction PMI data was released yesterday, and this particular bit of data had exceeded initial market expectations, adding up to the string of positive economic data coming in from Tuesday’s session. These series of data was able to help keep the sterling pound under its bid price and traded in a relatively steady trading manner during the first few hours of yesterday’s session.

The ADP employment report as well as the non-manufacturing data came in next, and these helped to further strengthen the stance of the USD as they both were able to meet expectations. The FOMC minutes were then released hereafter, wherein members of the central bank chose to snob the results of the Q1 GDP data, which was taken as a bullish mark for the USD since a large-scale buy was triggered during the NY session. The GBP/USD pair then plummeted through 1.2900 points and is now trading at 1.2875 points. The pair’s support levels are situated at 1.2850 points and since the NFP is expected to come in during yesterday’s session, the cable pair is expected to be able to maintain its hold on this particular region while it continues to consolidate.

For today’s session, we have the UK economy’s services PMI data as well as the US economy’s unemployment claims data, both of which are expected to induce volatility in the currency pair. The market is not expected to have much activity today as there is an influx of economic data scheduled for tomorrow.
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USD/JPY Fundamental Analysis: May 4, 2017

Postby Andrea ForexMart » Thu May 04, 2017 5:22 am

The USD/JPY pair traded just within the reaches of its six-week high as the Fed refused to remove the possibility of a June rate hike, although the country’s economic growth weakened during the previous quarter. The Fed chose to maintain its current interest rates and had highlighted the positive outlook for the labor market during its two-day meeting, which could possibly be an indicator that at least two more interest rate hikes are scheduled to be carried out within the year. The USD/JPY pair closed down the previous trading session at 112.759 points after increasing by +0.69% or 0.0770 points.

The current Fed statement and the previous statement do not have any stark contrasts except for the central bank choosing to ignore the GDP data this time. The futures markets are now pricing in a 93% probability that the Fed will be implementing an interest rate hike this coming June. The next FOMC meeting is set on June 13-14 which will be followed by a press conference from Janet Yellen. Based from the Fed’s meeting minutes released yesterday, the Fed could possibly raise its interest rates by up to 25 basis points up to three times in a row before the year ends. If this indeed happens, then the US dollar would eventually become a very attractive and a very lucrative investment for market players.

For today’s session, market volatility will not be expected to to increase since the majority of market players will be saving their energies for the release of the NFP report this Friday.


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NZD/USD Technical Analysis: May 5, 2017

Postby Andrea ForexMart » Fri May 05, 2017 2:49 am

The New Zealand dollar dropped during the Thursday session. The market has gone bearish because of the commodity market and the jobs data to be released. Traders should not forget that the price trend for the kiwi dollar would be influenced by the commodity market. The current trend could go higher reaching the 0.68 handle and short-term surge would mean selling opportunity. If the price breaks lower than the psychological level, the price would go downward instead. Traders should anticipate high volatility in the market but would be favorable for the U.S. dollar since the awaited jobs data to be released today.

The Future market also influences the currency although would not be directly influenced with any market. One could find a correlation between milk futures and the kiwi although it would not do much since the liquidity isn’t that high. The safe way is to compare with other commodities to determine how this currency will move and its overall tone in the market and wait for a short-term surge. It is possible to reverse the trend when it breaks higher than the 0.69 level and turn bullish as a follow through and climb higher.


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USD/JPY Technical Analysis: May 5, 2017

Postby Andrea ForexMart » Fri May 05, 2017 5:10 am

The U.S. dollar against the Japanese yen had a high volatility during the Thursday session. The market tried to break higher than the 113 level but failed that makes it much safer to be patient and wait on the sidelines until the jobs data has been released. Moreover, the bullish tone will persist in the long term.

There is a significant support found close to 112.50 level which may be better to move upward although this will be unexpected. The 112 region will be massively supportive but it still might shift when the jobs data results is negative. The labor report is anticipated to give 185,000 jobs for the month of April which the market in now focused on.

It is most likely that this pair will be influenced by the jobs data and if the results are positive, the pair will follow through.if the price breaks higher than the 112 level will be a relevant move while a break at 113 level could further bring the price at 115 level which is the former peak that is in consolidation. More noise in the trend would also impact the trend and make it more difficult to trade during the day. If traders would sway with the ongoing volatility, there is a chance for long term trades. Traders could buy the pair multiple time as it moves towards the 115 handle.

There is not much pressure anymore for the USD/JPY pair as its reach new weekly top during the Thursday session. The uptrend halted at 112.75 which is the psychological level for yesterday and the following morning. Buyers tried to test the 113.00 level prior to the New York opening. The resistance level resides at 113.00 level while the support is found at 112.00 region. The 4-hour charts are showing positive signs. If the bulls were able to break higher than the 113.00 level in the next sessions, the next possible target would be at 113.50 level.
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NZD/USD Technical Analysis: May 8, 2017

Postby Andrea ForexMart » Mon May 08, 2017 6:27 am

The New Zealand dollar against the U.S. dollar initially rallied for the past week. The 0.69 level was seen to give significant resistance which hints the possible continuation of the uptrend. However, this is not a good indication for commodities which highly influences the currency. On a good side, the crude oil surge for a while during the Friday session. Yet, the commodity market could remain subdued which would then decreased the demand for kiwi. It won’t take long that this pair would further decline. If the pair breakdown lower than the 0.6850 level, the next level would be at 0.67.

Short-term rallies for this pair opens more opportunities which will soon push forward. The pair hovers at 50% Fibonacci retracement level and it is anticipated to have a lot of noise down beloW. However, if the pair breaks down from the expected level, this implies that the pair is not strong enough.

On the other hand, if the pair breaks more than the 0.7030 level, the price could extend up to 0.73 handle or higher. The pair is much more directed to the go downward instead. Traders should look out for commodity market which will influence the currency in the next trading sessions and it may be difficult to go long for long-term in this pair.


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GBP/JPY Technical Analysis: May 10, 2017

Postby Andrea ForexMart » Wed May 10, 2017 4:33 am

The British pound paired with the Japanese yen rallied during the Tuesday session. The market reached the 147.50 level and tries to reach the 148 handle. There is still a lot of space to climb higher towards the next target of 150 handle. Later on, the 147 level could become a support level.

Amongst a basket of currencies, the Japanese yen sells off the most and sensitive to risk appetite as a whole. Traders should not forget the pair to be volatile and long-term deals is predominant in traders.

The market should also monitor the stock market which is performing well relative to indices such as the S&P 500. Although, traders should expect volatility as it climbs higher and it seems that there is sufficient buying pressure to push the price higher. Nevertheless, reversals open opportunities to gain for this pair, especially for yen related market. It may not be advisable to sell this for now with buyers leading the market. There is still risk appetite which could induce the pair to further go up.


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USD/JPY Technical Analysis: May 10, 2017

Postby Andrea ForexMart » Wed May 10, 2017 6:24 am

The U.S. dollar against the Japanese yen rallied as it broke at 114 handle. This would most likely move higher towards the 115 level which has been the peak of the last consolidation region and it would not take that long before the market reaches it. It is anticipated for a reversal to occur from now and then which will serve as buying opportunities in the market, most especially that there is a tone of bullishness seen in the trend. Volatility fluctuations is also expected that determines the weakness of the yen.

Price reversals could turn into an opportunity for this pair especially since the Japanese yen performs well in the market. Although, It may not be favorable to go short in this pair. The 113.30 region is being strongly supportive but there is a lesser possibility to go low to this level. It wouldn’t take long for buyers to return.

If the price breaks higher than the 115 level, this could move towards 118 handle. Although, it needs more momentum from the traders to reach this level. Hence, it may not be good to sell this pair for now.
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