Daily Market Analysis from ForexMart

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Re: Daily Market Analysis from ForexMart

Postby Andrea ForexMart » Wed Jan 04, 2017 2:00 am

EUR/JPY Technical Analysis: January 3, 2017

The EUR/JPY had an initial rally on Friday, however, shifted to another direction and formed an exhaustive candle logically. The pair was unable to break out through the upside and continued to consolidate on its current place. Meanwhile support level hovered in a lower position in order to maintain the market out of debt and any other difficulty. The price floor of the market settled near the 120 region. The next potential target is 125 mark, favoring a higher level against longer-term trends. Selling interest seems little no importance as of this writing.
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GBP/JPY Technical Analysis: January 3, 2017

Postby Andrea ForexMart » Wed Jan 04, 2017 3:41 am

The British pound paired with the Japanese Yen rallied last Friday as it moved ahead of the hammer pattern on Thursday. This event caused many buyers to return to the market as it moved near the 145 level. A break above the aforesaid level will drove towards the 150 region.
The GBP/JPY continued to have a significant dip by which the market in return would increase buying opportunities. On the other hand, the price floor of the pair is below the 140 handle.
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GBP/USD Fundamental Analysis: January 3, 2017

Postby Andrea ForexMart » Wed Jan 04, 2017 5:18 am

The pair GBP/USD has been moving softly and remains resilient despite the appreciation of U.S. dollar since yesterday. This was brought by closing of London market same with the New York market that causing the low liquidity and weak volatility of the pair. Since today is the opening again, it is expected for the pair to gain volatility and waiting for hints on what will happen to the short term trend.

The U.S. dollar surged in the early weeks of December since the announcement of the Fed rate hike but a few correction were seen as the days advanced near the holidays. This pushed the pair to go lower towards the 1.2400 level predominant in thin market but it is expected that this will only occur for a short period of time. Since it is after holidays, then there will be high liquidity that guarantees the next moves compared to how it was 2 weeks ago.

The Manufacturing PMI data from U.K. will be announced today that starts this week rich in data while the market awaits if the trend will continued to be supported by U.K. keep posting positive results in the midst of Brexit preparation. However, the surge of dollar may continue for some time while pound weakens. Hence, any form of rebound for the pair signals an opportunity for short-term position.

GBPUSD03.png
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USD/CAD Fundamental Analysis: January 4, 2017

Postby Andrea ForexMart » Wed Jan 04, 2017 6:23 am

The USD/CAD was one of the few currency pairs which benefited from the dollar index surge, as well as the recent drop in crude oil prices during yesterday’s trading session, which was the result of the carrying out of the recent agreements between oil production firms. The USD/CAD pair continued to exhibit a somewhat circumspect trading in spite of the dollar strength and has also limited itself to a tight trading range yesterday. The USD/CAD pair made a short-term drop at just below 1.3400 points but eventually reverted back to due an onslaught in demand and is now currently hovering at just below the 1.3450 trading range. The currency pair is expected to increase its strength as the day progresses, especially since majority of traders are now finishing off the holiday season and are now coming back to their trading desks. Even if the increase in the dollar index is not expected to drop anytime soon, its effect on the currency pair is expected to be somewhat subdued since the effect of the dollar surge could be offset by the recent increase in oil prices.

For today’s trading session, there are no major economic news releases from both Canada and US, and if the USD’s strength continues to go across the board, then the USD/CAD could possibly re-test the 1.3500 levels soon.
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EUR/USD Fundamental Analysis: January 4, 2017

Postby Andrea ForexMart » Wed Jan 04, 2017 10:39 pm

As the market’s overall volatility and liquidity returned yesterday following the holiday season, the USD once again exhibited its strength across the board. The strength of the currency was further augmented by the strong economic data which was released from the US. The US Manufacturing PMI data came in yesterday and showed a positive reading of 54.7, which just evident of the US economy’s recently positive economic data. If the nation continues to clock in positive economic sentiments, then this could further cement the chances of more frequent rate hikes from the Federal Reserve this year, and could also lead to faster hike pricing as well.

As a result, the EUR/USD pair plummeted through 1.0400 points and even surpassed its monthly lows last December for a short duration but eventually recovered during the opening of the European trading session and is currently hovering within the 1.0400 trading range. Market players are expecting the USD’s strength to be felt across the market for today, and if the EUR/USD could manage to break through 1.0400 points, then this could lead to the pair going lower further and possibly reaching 1.0300 points.

For today’s session, there are no major economic data coming from both the European Union and US and the market is most likely to be dominated by the onslaught of the returning of traders into the market, and any reversion in the EUR/USD should be seen by trades as a short-term opportunity.

EURUSD04.png
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USD/JPY Technical Analysis: January 4, 2017

Postby Andrea ForexMart » Wed Jan 04, 2017 11:30 pm

The USD/JPY pair broke its psychological level yesterday but rebounded higher than the turnaround level. A semi exhaustive candle was seen to form that could further push upwards the long-term levels with chances for pullback. The Support level was posited at 115 area with the next target at 120 level. It seems the market could reach this mark anytime soon.
The non-farm payroll data is anticipated to come out which will have a big impact to the pair that could subdue the market.
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NZD/USD Technical Analysis: January 4, 2017

Postby Andrea ForexMart » Thu Jan 05, 2017 12:35 am

The New Zealand currency had recovered compared to its American counterpart after the data release from China's manufacturing Purchasing Managers Index. Meanwhile, the pair established its recovery during the early trades yesterday in spite of the dollar’s strengthening across the board.

The NZD plunged through an upward trend and beat the 0.6950 level in the middle session of Asian trading. Nevertheless, the upswing that last overnight tried to hold back below the 0.6950 hurdle where the NZD/USD found a renewed selling interest. Moreover, the pair rebounded from the level amid the post-EU open and continued towards the 0.6900 support.
The 4-hour chart showed the price pushed the 50-EMA upwards in the morning trades. The pair was unable to expand its growth and further entered the 50-day moving averages before the outset of the North American session. The 200-EMA together with the 100-EMA sustained its bearish signal and the 50-EMA established a neutral stance. Resistance took the 0.6950 level, support approached the 0.6900 area. The MACD histogram traded on the downside. While the RSI oscillator lies in the neutral zone after it departed in the overvalued readings.

A bearish sentiment ruled on Tuesday. It is highly anticipated that the currency pair’s next target is 0.6900. In case the NZDUSD surpasses the initial target, the price is possible to move ahead to the 0.6850 region.

NZDUSD04.png
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GBP/USD Technical Analysis: January 4, 2017

Postby Andrea ForexMart » Thu Jan 05, 2017 1:35 am

The manufacturing PMI of the United Kingdom had supported the sterling temporarily amid trades on Tuesday. While the strength of greenbacks had curbed the major gains.
Moreover, the GBP presented a neutral-to-bearish position yesterday. The cable pair reversed its early lows during the Asian session but the pound lose its legs to move ahead the 1.2300 level where major currencies work over new offers.

The pour lowered down in the 1.2245 region, although a renewed bout of buying interest stimulate the British currency to regain its previous losses hence it continued to bounced back towards the 1.23 barrier.

As presented in the 4-hour chart, the price pushed the 50-EMA upwards. Meanwhile, majors failed to escape around the area of 50-EMA thus, it hovered within the region all throughout the trading day. Moving averages (50, 100 and 200). The resistance highlighted the 1.2300, support jump in through 1.2200 mark.

The MACD histogram is set in the centerline. In case the indicator came back to the negative zone, seller’s strength will grow. If it entered the positive territory, buyers have the power to dominate the market. The RSI kept intact in the neutral stance.

According to forecasts, the bearish sentiment will prevail. Most likely, the scenario will exhibit a further downward movement around the 1.2200 region.
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USD/CAD Technical Analysis: January 5, 2017

Postby Andrea ForexMart » Thu Jan 05, 2017 3:47 am

The positive sentiment of the oil market yesterday brought favorable impact on commodity currencies including the Canadian dollar.

The U.S dollar recovered in the Asian hours and slowed down within the 1.3470 range when the commodity-linked pair move towards fresh offers as it continued to fell under the 1.3400 support during the onset of EU trades.

Sellers were able to resume their gains amid the European session and pointed to the 1.3260 region. The downward pressure weakened near the 1.3300 while the price made a reversal around the aforesaid level. The price further broke the 200 and 100-EMAs in a descending manner as shown in the 4-hour chart. The 100 and 50-EMAs maneuvered towards a higher position while the 200-EMA is trending neutral. Resistance took the 1.3400 level, support highlighted the 1.3330 mark.

MACD indicator declined which confirmed strength for the sellers. RSI kept intact around the oversold zone.

In case the price had directed below the 1.3330 region, it will open an opportunity for the sellers to continue a short-term downward trend. The next probable target of the sellers are the 1.3190 and 1.3260 marks. The USD/CAD is able to bounce off few of its losses if it moves back on top of the 1.3330.

USDCAD05.png
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EUR/USD Technical Analysis: January 5, 2017

Postby Andrea ForexMart » Thu Jan 05, 2017 5:08 am

The positive data from the Euro zone supported the single European currency which further strengthened versus its US peer. Based on the EU statistical data, the inflation rate of the European countries is fast growing. While the favorable Markit Services and Composite PMIs of France and Germany further reinforced the EUR.

Technically, the major pair maintained a mid-term downward channel within a lower boundary. However, the 4-hour chart showed a limited upside potential. The Fiber reversed some of its losses during the trades on Wednesday. The buyers drove the prices towards the 1.0450 level where an upward impetus gradually disappear in the middle session of the EU hours. After reaching the aforesaid level, euro return on its recent region where it stayed.

The 50-EMA is in a neutral position and have been tested by the price in the mentioned time frame accordingly, while the 200 and 100-EMAs headed downwards.

The EUR/USD hovered under the moving averages as the level of resistance touched the 1.0450 and support entered at 1.0400.

The MACD histogram increased which indicated a weak position for sellers. RSI moved in the neutral zone and departed from the oversold area.

As it was mentioned in the forecast, the EUR is expected to kept intact in the pressured area but recovered the 1.0500 barrier. Buyers are able to lead the pair towards 1.0550. A break down from the 1.0400 handle will cause weakness for the EURUSD as well. The initial target of the sellers is 1.0350.
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