Daily Market Analysis by ForexMart

USD/CAD Technical Analysis: January 26, 2017

US President Trump plans to restore the two major oil pipelines, Keystone XL and Dakota Access, weighed on the Canadian currency but the loonie was able to recover in spite of the drop in oil prices.

The US dollar preserved its stance against the CAD. The sellers paused to consolidate their gains subsequent to the sharp sell-off. The price is confined on top of the 1.3120 level during the morning trades followed by a rejection in the Asian trades. The greens were pushed upwards by a renewed buying interests in the middle trading session of Europe.

Moreover, rate hike got failed and the downward pressure returned to the 1.3120 mark. The loonie lead the 50 and 100-EMAs downwards as stated in the 4-hour chart.

The USDCAD kept intact under the moving averages as the 100-EMA pointed downwards, 200 and 50-EMAs are neutral. Resistance is found at 1.3190, support settled around 1.3120.

The MACD pierced through the negative zone and if it kept its position, sellers will get the favor for further strengthening. RSI consolidated in the oversold territory.

The general outlook appeared to be bearish after the fall to the support area 1.3050 but the pair seems oversold. The possible 1.32 minor correction still have the tendency to emerge.

AUD/USD Technical Analysis: January 26, 2017


The AUD/USD declined on Wednesday’s trading session. The price stayed giving enough support at 0.75 and below. Although, it was able to reverse forming a bullish candle and it seems that the uptrend will persist towards the 0.7750 level. Yet, signs of breakdown would not be good but it needs to align with the downtrend of the gold market. With a lot of noise present in the lower channel, traders should expect high volatility in the market.


The market continues to be actively traded during the London Trading session. The Short-Term Interest Rate Trading (STIRT) market seems to be surprised with all the speculations intervening the market. The near-term trading may be favorable for equities and commodity markets with chances for higher returns but not active for the currencies. Moreover, the outcome of trading in Dow index overnight with the retreat of copper from a 19-month high that capped the near-term drop and its oversupply. Relying on the surged of the price, the Aussie will continue to attract investor for the near-term trading while the downtrend of the greenback continues.

NZD/USD Technical Analysis: January 26, 2017
The NZD/USD pair slumped on Wednesday’s trading session but recovered placed as a support. The Resistive level at 0.7350 is also coming strong that makes it an opportunity for short-term buyers. However, it may take some time to reach those levels while levels lower than the 0.72 mark also stands as supportive levels. This could affect the trading and become choppy but the bullish tone could persist in the short-term. For now, trading long term cannot be clearly imagined.
The inflation in New Zealand hike more than what was expected reaching the .7300 figure bringing tighter correlation between New Zealand and Australian CPI. Traders are cautious with the possibility of lower inflation for New Zealand as the results of yesterday’s CPI was lower than expected. Although the pair rallied higher than the .7300 mark and placed steadily with 30 pips difference. The Reserve Bank of New Zealand moves in a dovish tone to control the strength of the currency which has obstructed the impetus of the pair.

GBP/USD Fundamental Analysis: January 30, 2017

The GBP/USD pair was able to regain its footing and erase all the losses it had incurred during the latter part of last week. Although the increase in the value of the sterling pound was mainly because of the actual pound strength and not because of any drop in the value of the USD, the movement of the GBP was largely influenced by the stance of the US dollar. The US dollar has been relatively weak today and this has caused the GBP to increase in value and trade just below 1.2600, where it could possibly increase further in value.

The drop in the dollar’s value was mostly due to Trump’s policies, which did not sit well with majority of citizens as well as some members of the financial market. In addition, Trump’s attempts to alter trade agreements has already concerned quite a number of government leaders and it has already been clear that Trump’s recent movements are not to the best of interest of everyone involved in these issues. This has then prompted a drop in the USD’s value, and has set out the ground for the recovery of the sterling pound.

There are no major news releases scheduled for today, although the US will be releasing a string of highly important economic data for this week. The GBP/USD pair is most likely to trade with a bullish tone for today’s sessions.

USD/CAD Fundamental Analysis: January 30, 2017

The USD/CAD pair closed down the week on a much lower note as compared to the previous trading week after the Canadian dollar exhibited strength across the board and the USD weakened in value yet again even though it was able to recover during the latter part of the week. This particular recovery of the US dollar looks like it will be here for the long run, and this is why dollar bulls are putting added confidence to the performance of the US dollar in the next trading sessions. In addition, the Trump administration has already went about making changes and fulfilling its campaign promises, such as the shifts in Obamacare and the Mexican border wall, and the pulling out of US from trading agreements with Canada and other neighboring countries. This has created unrest in the market, and could open the doors for a possible trade war which is very bad news even for the US economy.

This has then prompted the USD/CAD pair to drop significantly in value from 1.3450 to 1.3000 points, but was saved by the sudden surge in the USD’s value as the previous week came to a close. The Canadian dollar also received support from the resiliency of oil prices, which managed to stay put in spite of the recent increase in the value of the US dollar. Market players are expecting this uptick in the USD/CAD to continue and could possibly extend up to 1.4000if it manages to stay just above 1.3000 points.

The Canadian GDP will be released this week, and governor Poloz from the Bank of Canada will also be releasing a statement this week. On the other hand, US will be releasing a string of important economic data including the NFP, wage earnings, as well as the statement from the FOMC. These are all expected to induce volatility in the market, and traders should either exercise caution or wait for things to settle before trading with this currency pair.

USD/JPY Fundamental Analysis: January 30, 2017

The USD/JPY pair was subject to high volatility last week, but the price action of the currency pair was practically the same since the currency pair merely reflected the range during the past week. However, in spite of this marked stagnancy, the market was still able to post gains during the past week. The USD/JPY pair closed down the previous trading week at 115.047 points after increasing by 0.514 points or +0.45%.

For this week, the Bank of Japan is set to release its Monetary Policy statement, the BoJ, Policy Rate, and the BoJ Outlook Report. Investors are expecting that the Japanese central bank will be maintaining its current monetary policy and will be doing the same for its interest rates, which presently stands at -0.10%. In addition, the central bank would also likely say that its current outlook for the Japanese economy is positive and that it expects its national economy to continue its steady improvement.

Meanwhile, the Federal Reserve is also expected to maintain its current benchmark interest rate but could also leave out hints with regards to the timing of its interest rate hikes in the future. Market traders are anticipating that the Fed would release its opinions on President Trump’s recent slew of executive decisions during his first week in office and what these executive orders mean for the central bank’s decisions in the future.

The US will also be releasing its Non-Farm Payrolls report this week and is expected to show that the US economy increased jobs by 170,000 for January, although unemployment rates remain stagnant at 4.7%. Average Hourly Earnings for US will also be released this week and is expected to have a reading of 0.3%.

EUR/USD Technical Analysis: January 30, 2017

The European currency slowed down followed by the improvement on the dollar’s stance. The euro were left flat-out due to the absence of the market-moving news in the calendar. The EUR resumed to move down smoothly overnight and break away from the near-term rising channel. The euro had traded mixed as the Asian trades opened and hovered in the tight ranges of 1.0650-1.0690.

The EURUSD is confined in the neutral position in the morning EU session and met renewed bids within 1.0700 level. It further rallied around the level, en route 1.0750 prior to the outset of NY hours.

According to the 4-hour chart, the price leads the 50-EMA lower and headed northwards together with the 100-EMa. The spot hovered on top of the 100 and 200-EMAs eventually. Resistance is seen at 1.0750, support hit 1.0700.

The MACD proceeded to the negative zone and if the histogram stayed in this area, the position of the sellers will improve. The RSI lies in the oversold territory near the neutral ground.

A close on top of the 1.0700 mark will produce renewed bullish indicator which is possible to advance towards 1.0750.

GBP/USD Technical Analysis: January 30, 2017

The sterling softened on the back of the demand growth for the greenbacks. The GBPUSD was able to recover few of its losses subsequent to the meeting between Trump and May. The US data showed some pessimism which further hit the pair higher.

The British currency lose its value against its U.S peer during the night trades on Thursday. The spot were removed from 1.2600 level and placed in 1.2500 region amid Asian session. The pound extend its losses during EU hours, en route 1.2500. However, the level stalled the seller’s progress and kicked the spot higher. The price resumed its development on top of the moving averages as shown in the 4-hour chart while the 100 and 50-EMAs stirred upwards and the 200-EMA sits in the neutral position. Resistance touched 1.2600, support jump in the 1.2500 mark. The MACD histogram weakened which further slowed down buyer’s position. The RSI escaped from the overvalued territory and came in through the neutral zone.

The bullish outlook generally exist in the market while the pair got an opportunity to make recovery in case it surpassed 1.2600. A breakout within the 1.2600 handle would direct to 1.2700. Furthermore, the prevailing selling pressure could impact the spot and pushed below the mark 1.2500.

NZD/USD Technical Analysis: January 30, 2017

The American dollar was able to sustain a bid tone last Friday. Meanwhile, the markets highly anticipated for the further plans of Trump coupled with the GDP of the country for the fourth quarter. The NZDUSD kept intact in the ascending channel pattern on Friday. The price were pushed by the downward impetus toward its lower limit last 26th of January. Moreover, a recovery lasted overnight showed insignificant results. The European traders solely managed to drive the spot upwards

The pair was able to expand its recovery during the NA session. The price continuously sits on top of the moving averages according to the 4-hour chart. The 100 and 50-EMAs moved higher while 200-EMA is positioned in the neutral trend mentioned in the similar chart. Resistance entered 0.7300, support reached the 0.7250 region. The MACD indicator confirmed weak buyer’s position as it decreased steadily.

Bullish sentiment was likely to prevail for today. The short-term goal for the pair is 0.7311.

AUD/USD Technical Analysis: January 30, 2017

The AUD/USD pair closed lower at .7546 with an increase of 0.0014 or 10.78% on Friday since the release of economic data of Australian Consumer Inflation report that pulled down the U.S. dollar higher than what was expected in the last quarter in 2016. This could prompt the central bank to reduce its benchmark interest rate for this year.

There are no major Economic news from Australia to be released today but several data are scheduled to published from U.S. such as Core PCE Price Index, Personal spending, Personal Income, Pending Home Sales and Loan Officer survey later in the afternoon GMT time.

The main trend is heading upward in the daily chart but there is not enough momentum as the price reversed as it reached the .7608 level on Tuesday last week. However if the trade continues above the said level, it is possible for the upsurge to continue and establish .7511 as a new trading floor The trading range swayed between .7777 and .7159 levels with retracement levels from .7541 to .7468 area. The market extend across this range giving an upside tone with the retracement levels as support levels.

The near-term range lies within the .7159 to .7608 level. If the market reached the .7383 to .7330 area proceeding its reversal trend, this becomes the next floor target as it closes with a bearish tone.

The trading closed at 0.7546 on Friday and the next direction of the pair will depend on traders activity with Fibonacci level at 0.7541. If the current trend prolonged, this implies the strong stance of buyers leading the market. The followed uptrend with the possible resistance levels at .7568, .7588 with the last level to reach at .7598 before the highest level at .7608 mark. If it skips the .7608 level, the uptrend may continue towards the next target at .7639 level giving a bullish tone to the market.

However, if the price maintained lower than the .7608 level moving across the .7528 downtrend angle, indicating sellers dominating the market. It could go much lower towards the .7468 level. This could induce the market to jump towards the .7399 ad .7384 as the next support range. Overall, the price trend for this pair will depend on the market reaction to .7541 level to determine whether buyer or sellers will dominate the price for this day.

USD/CAD Technical Analysis: January 30, 2017
The USD/CAD pair declined in the week while testing the 1.30 level or lower for support. The former uptrend line continues to move offering strong resistance. Its support level is found at 1.3018 followed by a rebound towards the 1.3053 mark. This rebound may be a signal to consolidate a downtrend at 1.3387 level and could further go down towards the 1.2900level. If a break above the 1.3230 Resistance level, this finishes the decline of the pair.
For now, it is more favorable to trade in short-term instead of long-term trades. Traders should monitor the oil market as it has a big impact to the Canadian dollar which is not performing well while the traders are still uncertain of what to do next.

EUR/USD Fundamental Analysis: January 30, 2017

The Euro has recovered this morning trading amid the high risk and uncertainty in the market that has also affected the U.S. dollars. It seems that the current global condition reverses where that safe haven assets such as dollar and gold as seen as a go-to investment because of its stability but this is not happening. The greenback gives off high risk with market concerns on the changes in U.S. policies while yen and gold gain with risk off sentiment of the traders.

Change in U.S. administration following Trump’s inauguration and its team looks into update of campaign promises such as modification of Obamacare, immigration rules in wholesalers and muslim ban and other migrants making it difficult for them to come back in the country attracted public controversy. The stand of the U.S. who is aiming for a renegotiation of NAFTA and other trade agreements, is significant in the global trading swaying the balance in trades where some leaders had dissatisfaction where this is heading. This has increased the uncertainty on what will happen in the next 4 years altering U.S. policies and influencing market sentiment that drags the dollar down while the pair gains from it.

With the recent Chinese New Year holiday, there is no new major economic news expected to be released today. Hence, the market is in consolidation while later on, market should expect high volatility with the release of economic data in the middle to later of the week. The U.S. dollar may continue to weaken for some time while the EUR/USD pair would remain in consolidation state with a tone of bullishness.

USD/JPY Fundamental Analysis: January 31, 2017

The Japanese yen inched higher as opposed to the US dollar as a result of a flight-to-safety trend across the market, which was triggered by investor reactions to a sudden drop in global equity markets. Meanwhile, stocks were sold off as a result of Donald Trump’s immigration ban. The USD/JPY pair closed off the previous trading session at 113.778 after decreasing by -1.10% or 1.269 points.

A lot of investors have sought the protection of the Japanese yen after protectionism concerns arose due to the immigration ban since these could possibly have a negative effect on both exports and imports and could also create substantial risks for the economy. Towards the latter part of yesterday’s session, the Japanese Household Spending data came in with a reading of 0.3%, exceeding market expectations of 0.8% and the previous reading of -1.5%. However, the unemployment rates for the country remain stagnant at 3.1%. Meanwhile, the Bank of Japan chose to maintain its current benchmark interest rates at -0.10%, a move that was generally anticipated by the majority of market players. The central bank also increased its GDP forecast to 1.4% as opposed to its past prediction of 1.0% back in October. In addition, the BoJ also stated that it is expecting an inflation surge of around 2% come the fiscal year 2018.

Interest rate differentials could have a positive effect on the USD/JPY pair since the central bank chose to maintain its interest rates while the Fed hinted at high-frequency rate hikes for 2017. In the short term, the USD/JPY could be driven by volatility coming from the equity markets. However, the dollar-yen relationship could possibly be influenced by the positive interest rate differentials.

GBP/USD Fundamental Analysis: January 31, 2017

The GBP/USD pair’s activity has been very disappointing during the past 24 hours, which could be largely due to the fact that the market is nearing the end of the month. Towards the end of every month, the UK government is required to pay its membership fees to the European Union, and this usually amounts to 1 billion euros, and this usually induces volatility in the movement of the sterling pound. These monthly dues from the UK are usually masked by the banks which process these transactions, but these show more often than not, and this contributes to the drop in the value of the GBP.

Market analysts have constantly saying that the direction of the sterling pound would most likely be influenced by the Brexit process, and this has been already seen with the increased pressure on the GBP/USD pair. This particular pressure on the pound is expected to continue until such time that the Brexit process is finally completed, and this is also the reason why the pound climbed up to trading highs near 1.2700 but eventually corrected and is now expected to hit 1.2300 points in the short term. The GBP will remain to be one of the weaker currencies, and although there might be a few intermittent reversions at the expense of the dollar weakness, these are not expected to follow through in the long term.

There are no major news releases from the UK set to be released today but the US will be releasing its consumer confidence data. Month end flows are expected to come in today as this is the last day of the month, and traders are advised to take the necessary precautions to protect themselves from the onslaught of additional volatility today.

EUR/USD Fundamental Analysis: January 31, 2017

The EUR/USD pair was subject to a lot of volatility during the past trading sessions. The currency pair initially began yesterday’s session on a positive note, but eventually dropped in value as the USD weakened across the board and negative concerns and uncertainties in the international economy increased, which then adversely affected all currencies including the EUR/USD pair. The currency pair has since then moved towards 1.0620 points before slightly recovering during the North American trading session and climbed up back to 1.0700 points.

Trump’s immigration ban has not sat well with a lot of world leaders, and this has rattled the entirety of the financial market, with a lot of market players losing confidence over the US dollar. Trump’s newly-laid out economic and foreign policies is also a cause for concern in the market, and the effects of these uncertainties are starting be felt in the markets as well. The EUR/USD could possibly continue its consolidation for today since there are expected month end flows for today. The market is also expecting to see some position adjustments for this year.

For today’s trading session, ECB governor Mario Draghi will be releasing a statement during the London session, but this is not expected to lend that much volatility into the market as Draghi very rarely gives out anything substantial with regards to the present economic status of the European Union in his speeches.

USD/CAD Technical Analysis: January 31, 2017

Many investors await for the release of GDP scheduled tomorrow. Meanwhile, the decline in oil prices shocked the commodity currencies including the Canadian dollar. Moreover, the terrorist attack on the Quebec mosque last Sunday further made a slight impact against the Loonie.

Meanwhile, the greens resumed its short-term bullish signal on Monday and it resumed to climb higher subsequent to a short period of consolidation amid Asian hours. The USDCAD strengthen during the earlier trades in Europe and advance to 1.3190. But the upside impetus stalled at 1.3158 level where the major stayed prior to the opening of NA session.

The spot is confined under the moving averages as indicated in the 4-hour chart. The 50-EMA made an upward crossover to the 100-EMA. The 50 and 200 EMA are neutral while 100-EMA en route lower. Resistance entered 1.3190 level, support plunge in at 1.3120.

The MACD increased which signaled sluggish stance for sellers. RSI lies around the neutral territory.

The 1.3120 support region paid attention by the market. A gap within this region would open an opportunity for the 1.3090 range, lowering to 1.3050.

GBP/USD Technical Analysis: January 31, 2017

The UK calendar seems empty on Monday as the markets fixate on the Bank of England on Wednesday.

The GBPUSD break higher as the new week starts. The spot plunge towards 1.2600 as the price found a decent hurdle. The Cable rebounded through the barrier and turned lower in the opening which closed the bullish gap. The spot kept pressured around 1.2500 amid EU hours, however, did not make it regain the level. The sterling pound stayed overhead of the moving averages as shown in the 4-hour chart. Moreover, the 100-EMA crossed above the 200-EMA. The 100 and 50-EMAs ployed northbound while the 200-EMA appeared to be neutral-bearish. Resistance touched 1.2600 level, support sits in 1.2500 handle.

The MACD histogram fell off which signaled weak position against the buyers. The RSI indicator departed from the overvalued area and pointed southbound.

The technicals prefer a downside movement. If the 1.2500 level gapped lower it will direct the cable pair to 1.2400.

EUR/USD Technical Analysis: January 31, 2017

The single European currency takes no attention to the upbeat of Spain’s GDP and it continued to weaken on Monday. The markets await for the impending meeting of the ECB while there are speculations the Consumer Price Index would be in the green.

The EURUSD break upwards in the daily open yesterday. The price reaches the region 1.0700 up to 1.0740 amid Asian hours.

The negative stance of the dollar was reversed as the Asian session took place. Bullish investors were unable to resume their gains as they decided to give way to the sellers. While the bears managed to lead the spot towards 1.0700. Before the opening of the New York trades, a renewed selling interest developed.

The pair made an even break downwards and touched 1.0650 level. The price pushed the 50-EMA lower while the 100-EMA was tested as indicated in the 4-hour chart during the middle session of Europe. The 100 and 50-EMA directed upwards, 200-EMA is flat. Resistance is mentioned at 1.0700 region, support is shown at 1.0650 handle.

The MACD lies at the middle point. Should the indicator arrive in the positive zone will indicate added strength for the buyers, however, an entry through the negative territory will signal seller’s ability to dominate the market. RSI comes in the neutral zone, en route southwards.

It is recommended for the 1.0750 resistance to test again prior to the pair’s rally as it approaches 1.8000 range. But the spot might change and it becomes bearish for this moment. If the price focuses on the mark below 1.0650, the 1.0550 level is possible to open.

USD/CAD Fundamental Analysis: February 2, 2017

The USD/CAD pair was subject to a lot of pressure during the past trading sessions, majority of this pressure caused by Trump’s implementing policies on trade, immigration, and currencies which has led to a large of number of market players into thinking that Trump’s onslaught of policies might soon lead to a trade and currency war against other major economies.

Trump’s movements has not boded well for the US dollar after the dollar weakened significantly across the board and has caused the USD/CAD to experience a slight reversion at 1.3100 as a result of highly positive employment readings for the region. However, this bounce in the pair diffused quickly as the announcement from the FOMC was unable to induce some positivity within the market, causing a USD sell-off and has caused the USD/CAD to retreat back to 1.3000 and is currently trading weakly just under this particular region. The areas of 1.2960 and 1.3000 has recently been tagged as a highly critical support region and the currency pair might experience a major trend change if the pair manages to break cleanly through this region, and with the pair nearing this range, traders are advised to closely watch the subsequent movements of the currency pair.

There are no major economic readings to be released from both Canada and US for today, although the US will be releasing its unemployment claims data. The weakness in the dollar is expected to continue for today and could cause the USD/CAD to continuously consolidate while the market waits for the readings of the NFP report which is scheduled to be released tomorrow.

EUR/USD Fundamental Analysis: February 2, 2017

The EUR/USD pair’s strong stance for the whole month of January was mostly due to dollar weakness as a result of Trump’s recent policies and brash sentiments which has affected the country’s economy. The market initially had a positive outlook for the US dollar after the Fed hinted at additional rate hikes in the coming months, however they failed to consider the Trump administration’s ability to have a major effect on the world economy.

Immediately after Donald Trump assumed office, his administration already made on good on his campaign policies such as building a Mexican border wall and implementing an immigration ban in the US, which has sparked outrage among several world leaders and US citizens. His team also made major changes in Obamacare and has also proceeded to ban immigrants from certain Muslim countries. This has caused widespread concern in the market and has led to dollar sell-offs and has enabled the EUR/USD pair to close down the month of January near the critical resistance barrier of 1.0800 points.

For the month of February, there is an expected onslaught of major economic data to be released which includes the FOMC minutes meeting and the NFP data from the US, but the market is most likely to put more emphasis on Trump’s governance and his future implementing policies. The euro might eventually crack and plummet once the dollar regains its footing and starts going back up, with the euro possibly returning to its monthly lows last December.

GBP/USD Fundamental Analysis: February 2, 2017

The GBP/USD pair had a generally good run for January in spite of the fact that the Trump administration has begun to take its reins in the US economy and started implementing policies which has adversely affected the market and the international economy as well. This has then resulted to a major sell-off in the USD which has helped in boosting the value of the GBP/USD pair. This particular currency pair is also the only pair which has increased in value due to the pound strength, making it very attractive for the pound bulls.

Theresa May has also finally clarified her stance and point of action for the Brexit process and has also stated that the UK will be exiting completely from the Eurozone in order to establish a completely different trade relationship with the region. In addition, the SC has also ruled that the invocation of the Article 50 must first undergo deliberation and approval by the Parliament excluding Scotland, Wales, and Ireland, which lended support for the currency pair and induced it to climb up to 1.2650 points.

For the month of February, market players will be mainly focusing on the movement of the USD as the Trump administration implement more policies. But this does not mean that the market will be focusing less on Brexit, since the UK government will finally be carrying out its plans for the nation. But there is still a major sell-off expected in the GBP/USD pair since there is still the lingering Brexit process in spite of the highly positive economic data coming from the US.

NZD/USD Technical Analysis: February 2, 2017

The Bank of New Zealand disclosed a mixed data as of yesterday. Meanwhile, the Jobless Rate came in negative. The Employment Change matched the expectations and the Participation Rate increased. The bulls continued to handle the market. The NZD continued to reverse its Tuesday’s low seen at 0.7250 and made a minor reversal in the mid-EU session. The spot nearly touched 0.7300 upon the easing of buying pressure. The price rebounded in the 100-EMA shown in the 1-hour chart. The spot is sandwiched between the 50 and 100-EMAS. The moving averages preserved its bullishness mentioned in the same chart.

Resistance is at 0.7300, support is at 0.7250 range. The MACD is trading on the upside. The RSI lies around the neutral territory. According to the 4-hour chart, a bullish sentiment dominated the market. A break on top of 0.7300 would suggests an increase through 0.7350.

GBP/USD Technical Analysis: February 2, 2017

The Manufacturing PMI of the United Kingdom met its projected result where the British currency got some support. The sterling successfully removes its losses yesterday. The bullish trend currently reigns over the market.

The buyers found a hurdle around the 1.2600 level and retreated amid Asian hours. The GBP/USD keep moving closer to 1.2600 region prior to the London opening. The buyers were able to push the barrier throughout the middle session of the European hours and resumed its bullishness eventually. The Cable remain to develop on top of the moving averages indicated in the 4-hour chart. The 100-EMA cross the 200-EMA in an up direction. The 100 and 50-EMAs preserved their bullish pattern while 200-EMA kept a bearish-neutral stance. Resistance touched 1.2700, support lies at 1.2600.

The MACD histogram is situated in the centerline. If the indicator approaches the negative zone, it will imply added strength for the sellers while an entry towards the positive territory will signal buyers ability to manage the market in general. RSI proceeds in the overvalued area.

The pair is possible to move near the 1.2700 mark .

EUR/USD Technical Analysis: February 2, 2017

The American dollar remained in the pressured area on the back of the remarks made by the trade advisor of D.Trump, accusing the countries China, Germany and Japan about exploitation over undervalued currencies.

Moreover, the single European currency obtained support from the positive figures of inflation within the euro region. The investors currently awaits for the Fed meeting.

The ascending trend of EURUSD remained unchanged on Wednesday. The euro kept intact versus its U.S rival following the rally during the morning trades on Tuesday. The buyers have consolidated their gains as it grasp the spot in the flat trend under the level 1.0800. The price pushed the 50-EMA towards a higher point as seen in the 4-hour chart. The spot is confined overhead the moving averages. The 50 and 100-EMAs preserved a bullish stance while 200-EMA was in the flat lining. Resistance approached 1.0800, support hit 1.0750 mark.

The MACD increased which signaled buyer’s strength. RSI stayed in the overvalued territory after it left the neutral zone.

The bulls were able to lead the overall mark. We will impose a buy order in case the pair made a breakout near the 1.8000 resistance level. A close on top of the barrier will generate gain through 1.07500. Furthermore, the hawkish comments of Yellen could possibly bring back the sellers to the market. The most possible scenario is a dipped on the lower point of 1.0750.

GBP/JPY Technical Analysis: February 2, 2017

The GBP/JPY pair broke higher than the Tuesday candle on Wednesday's trading session. This indicates a bullish tone for the pair after breaking above the hammer pattern on Tuesday implying for the price to move higher while a strong resistance is found at 145 handle. Hence, it is possible for the price to fall which would be a buying opportunity in the short-term charts. If the price breaks higher than the current psychological level, the price could further go up towards the 148 handle. On the other hand, it may not be favorable for selling the pair since the 140 level sits as a support level.