Daily Market Analysis by ForexMart

USD/JPY Fundamental Analysis: March 27, 2017

The USD/JPY pair retreated significantly during the previous week as investors relieved themselves of high-risk assets following a drop in US Treasury prior to the voting on the US healthcare bill last Thursday and Friday. Due to the said bill getting postponed already twice in a row, the USD/JPY pair weakened not because of the postponement of the said bill but because of large-scale investor uncertainties even before the voting on the bill even commenced. The USD/JPY closed down last week’s session at 111.306 after dropping by -1.16% or 1.310 points.

The Bank of Japan has recently released the minutes from their most current policy meeting, and here we see the central bank thumbing down suggestions of a possible hike in the economy’s 10-year government bond yields in order to match the projected gains in Treasury yields. Those who suggested this particular move stated that the central bank should instead focus on hitting its inflation rate target of 2%, which is a very hard task to do since Japan still has concerns regarding inflation expectations and overseas economies as seen in the BoJ minutes.

There are no major economic news releases as far as this week is concerned, with the market only expecting Tuesday’s consumer confidence data from the US and Thursday’s final GDP report. The USD is expected to exhibit some movements this week as a lot of Fed officials are expected to release statements, and the probability of a USD movement would increase if the said officials would talk about the current administration’s economic plans. However, the USD could be under pressure if Fed officials hint at a fewer rate hike frequency if Trump fails to carry out his proposals for fiscal spending and tax reform. This is why the USD/JPY pair would most likely be directed by the price action of the yields.

EUR/USD Fundamental Analysis: March 29, 2017

The EUR/USD pair crashed during the previous session as the pair corrected its current upmove which has been the pair’s trend for the past few weeks. The USD finally recovered across the board, resulting to sellers taking advantage of this occurrence and selling the EUR. The dollar strength has helped to propel the pair’s value towards 1.0800 points, therefore eradicating the pair’s previous gains which was made last Monday.

Because of this, traders are now mulling over the fact that the EUR/USD pair could be in for more corrections as the sessions progresses. However, the market has no choice but to wait and see how the pair’s price action turns out in the next few days, particularly if whether the pair would continue its current trend of correction or if the pair backs down as it approaches its support barrier at 1.0800, where the currency pair is situated as of the moment. The USD remained weak last Friday up until Monday due to the repeated failed attempts of the Trump administration to pass the healthcare bill. However, the White House is now trying to make another attempt at passing the said bill after Republicans reached out to like-minded Democrats. In addition, the US economy continues to release a slew of strong economic data and this has caused the EUR/USD pair to fall further during the US trading session.

For today’s session, there are no expected releases coming from both the EU and the US economy. However, the month-end flows are expected to come anytime soon as March comes to a close, and since the USD’s strength is expected to persist today, the EUR/USD pair would continue to remain under pressure with the 1.0800 range remaining the essential barrier for the currency pair.

GBP/USD Fundamental Analysis: March 29, 2017

The GBP/USD had a very disastrous trading day yesterday as the currency pair crashed by over 200 pips following the USD’s recovery, as well as the nearing invocation of Article 50. A lot of market players have been saying that today will be a very interesting day for the GBP/USD pair as the Article 50 will be invoked later today, which will mark the start of the Brexit process and basically a point of no return for the British economy.

The GBP/USD pair has seen a consistent buildup of shorts during the past week as the market awaits a very large drop today. However, the value of the GBP/USD pair is also consistently moving higher and increasing towards 1.2600 points. This is a potentially very risky combination and the effect of this combo manifested yesterday, wherein both the USD’s strength and Brexit-related concerns caused the currency pair to drop from its range highs of 1.2600 towards 1.2400 points, where the pair is currently trading. The USD recovered amid possibilities that the Trump admin might again try to pass the healthcare bill by seeking help from like-minded Democrats. Theresa May will also be signing the order for Article 50, and it will be interesting to see how the sterling pound will react to this most recent development in the UK economy.

For today’s session, there are no major releases from both the US and the UK economy and this is why the market will be mostly focusing on the invocation of Article 50 and the subsequent reaction of the GBP/USD pair following the said invocation.

NZD/USD Technical Analysis: March 29, 2017

The New Zealand dollar came in weaker before the speech of Janet Yellen on Tuesday, but its sluggish position was limited since the kiwi received support from the recovery in petroleum prices.

The NZD/USD kept intact under the level 0.7050 with a tight range. The major continuously weaken during the morning as the pair declined towards 0.7000. Traders were unable to drove the major below the mentioned region lacking strength to reverse its losses.

The NZ currency spent the day within the mark prior to the opening session of New York. The NZDUSD made a gap through 50-EMA lower and stayed on top of the 100-EMA based from 4-hour chart. Moreover, the 200-EMA preserve a bearish slope, 100-EMA seems neutral and 50-EMA turned upwards.

Resistance touched 0.7050 area, support reached 0.7000 mark.

The histogram stalled in the centerline. If the MACD entered the negative zone, it will signal increasing strength of sellers. However, when the indicator dive into the positive grounds, buyers will acquire the power to manage the market. The RSI oscillator stirred downwards.

The price focuses on a stable support near 0.7000 loss by which could possibly trigger weakening within the 0.6970 – 0.6950 ranges.

EUR/USD Fundamental Analysis: March 30, 2017

The EUR/USD pair had a very dismal trading day yesterday as the currency pair surpassed 1.0800 points and reached 1.0700 where it would be most likely met by a lot of buying which means that the currency pair might receive additional support within this range. These string of events was enough to keep the EUR/USD pair under significant pressure for the rest of the trading day. The EUR/USD pair remained under downward pressure since yesterday was the scheduled invocation of Article 50, which is expected to have a long-term effect with regards to the status of the euro currency. However, as of now, there has been no change detected yet as far as the euro is concerned.

There were reports swirling around yesterday that the ECB’s message regarding the reasons behind the euro’s well bid was being subject to over-interpretations from market players. The European Central Bank had previously stated that the EU economy was slowly gaining an upward momentum and is slowly achieving the goals set by the ECB. The market took this as a hint of the start of the QE and which will be reduced by the ECB in the succeeding months. However, yesterday’s reports have shown that the central bank might not be so keen on the said QE and could only mean that the eurozone’s economic risks were tapering off. This led to a minimal sell in the euro which, along with the USD strength, helped propel the EUR/USD towards 1.0700 points.

However, buyers can start buying this currency pair once it actually hits 1.0700 since the heavy support within this range can lead to more buys in this region. For today’s session, there are no major economic data coming from the eurozone but the US will be releasing its GDP data and this is expected to paint a general picture of the current state of the US economy.

USD/CAD Technical Analysis: March 30, 2017

The commodity-linked pair is confined to a familiar range yesterday. The price was positioned in the middle points of 1.3400 and 1.3350 within the day.

The overnight recovery slowed down in the earlier trades as the spot attained the channel’s upper limit.

The morning session triggered renewed bearish tone. The greenbacks dropped sharply near the lower limit eliminating its gains throughout the night. Sellers unsuccessfully move downwards and hovered in the range.

In the 4-hour chart, the spot was sandwiched in the 100 and 50-EMA during the first part of the day. Meanwhile, the 50-EMA drove higher, 100-EMA shifted down and the 200-EMA preserved a bullish pattern.

Resistance is at 1.3400, support holds 1.3330 mark.

The MAcd indicator stayed on its previous level, favoring strength for the buyers. The RSI oscillator descended.

As mentioned in the same timeframe, technicals confirm a downwards continuation to 1.3330.

EUR/USD Technical Analysis: April 3, 2017

The US dollar is positioned near its weekly highs on Tuesday but the bullish tone of German jobless rate stalled its advancement which offered another leg to the common European currency.

Furthermore, the price maintained a bearish sentiment last Friday, however, the bears did not hold its stance longer favoring the bull to reversed few of its ground.

The price bounced towards the area of 1.0675 amid Asian session on Friday. The EURUSD made a reversal to the mark 1.0700 throughout the European trades.

The 4-hour chart showed the EUR/USD cut through the 100-EMA downwards while 100 and 200-EMAs directed upwards, showing the 50-EMA to drove downwards.

Resistance was seen at 1.0700, support entered at 1.0650.

The MACD histogram grew less which indicates a sell signal. RSI indicator spent the day around the oversold territory, confirming a renewed higher move.

Forecasts say a move on top of the immediate resistance involves higher chance of testing the region 1.0750. Alternatively, a sell-off has a probability to occur towards mark 1.0650.

GBP/USD Technical Analysis: April 3, 2017

The renewed figures of British Gross Domestic Product saddened the investors as it presented lower than expected results. The report stalled the current recovery which pushed the spot downwards.

The Cable started the day with a bullish tone. Traders successfully lead the price near the resistance level 1.2500 where the spot met new offers. The GBP/USD stirred away from the barrier in the mid-session of Asian hours and sustained a downward sentiment amid European trades.

The price moved close the mark 1.2450 in the middle part of the day in which the sterling lost its selling impetus.

The 4-hour chart pointed out the 50-EMA being tested by the major. Meanwhile, the 50 and 100-EMAs preserved its bullish pattern, alongside the 200-EMA to appear neutral.

Resistance touched 1.2500, support entered 1.2400.

The MACD histogram increased indicating weak seller’s position. The RSI maintained its position within the neutral grounds.

The major is seen struggling with an aim to build towards the recovery gains. A break over the region 1.2500, the next focus would probably the 1.2600 mark.

GBP/USD Technical Analysis: April 3, 2017

The renewed figures of British Gross Domestic Product saddened the investors as it presented lower than expected results. The report stalled the current recovery which pushed the spot downwards.

The Cable started the day with a bullish tone. Traders successfully lead the price near the resistance level 1.2500 where the spot met new offers. The GBP/USD stirred away from the barrier in the mid-session of Asian hours and sustained a downward sentiment amid European trades.

The price moved close the mark 1.2450 in the middle part of the day in which the sterling lost its selling impetus.

The 4-hour chart pointed out the 50-EMA being tested by the major. Meanwhile, the 50 and 100-EMAs preserved its bullish pattern, alongside the 200-EMA to appear neutral.

Resistance touched 1.2500, support entered 1.2400.

The MACD histogram increased indicating weak seller’s position. The RSI maintained its position within the neutral grounds.

The major is seen struggling with an aim to build towards the recovery gains. A break over the region 1.2500, the next focus would probably the 1.2600 mark.

NZD/USD Technical Analysis: April 3, 2017

On Friday, the New Zealand currency was kept intact below the selling pressure on the back of the sluggish business confidence released by ANZ.

The suffering of kiwi extended its softening until Friday. The sellers ran out of steam despite maintaining the control and breaking under the level 0.7000. Moreover, they were able to drove the NZD/USD lower.

During the morning, the pair traded in a tight range, viewed in the middle points of 0.7000 and 0.6980.

According to the 4-hour chart, the spot crossed downwards to the 50-EMA and resumed its development under the moving averages. The 50 and 200-EMAs continued to move down while the 100-EMA steered higher.

Resistance touched the region 0.7000, support made an entry at 0.6950 mark.

The MACD weakened indicating strength for the sellers. In case the histogram stayed within the positive zone, the position of the buyers will strengthen. The RSI indicator is in the oversold levels.

The price was stuck in a range in order to get some steam used for further activities. There is a possibility of minor correction. Having broken the 0.7000, the radar will prompt 0.7050 level.

EUR/USD Fundamental Analysis: April 4, 2017

The EUR/USD pair traded consistently as the market is currently in the process of preparing itself for the series of economic data set to be released later this week. Analysts have been saying that the currency pair would most likely continue consolidating for a maximum of two days as part of the market’s preparation for the expected string of data coming out within the week. This is why the EUR/USD pair was trapped within a range of 40 pips for the entirety of yesterday’s session which is barely half of its usual range. This could be attributed to the majority of traders wanting to be on the safe side of the market as the 2nd quarter of the year begins.

The US released its ISM manufacturing data yesterday, with the said data meeting market expectations and has helped the USD to maintain its stance. The US Treasury yields plummeted during the NY session and had very little effect on the USD in spite of its major effect on stocks and the Japanese yen. The NFP report and the FOMC minutes are set to be released during the latter part of this week, and the market is now anticipating the statements coming from the Fed especially since Yellen had previously stated that the central bank’s stance on future rate hikes would depend on the state of the nation’s economic data.

For today’s session, ECB’s Draghi is set to make a speech during the NY session but since the central bank governor is known to be neutral when it comes to the ECB’s monetary policy, the market expects no impact coming from this statement and it is highly likely that the EUR/USD pair would only continue to consolidate between 1.0600-1.0700 points as it waits for significant pushes toward a definite direction.

USD/CAD Fundamental Analysis: April 5, 2017

The USD/CAD pair briefly made it towards 1.3400 points and even managed to surpass this region following a series of very dismal economic readings from the Canadian economy. However, the advancement of the Canadian dollar was almost immediately met with tremendous pressure from sellers, causing the CAD to retreat towards 1.3400 points. Analysts are now saying that unless the USD/CAD pair manages to surpass the large-scale selling at 1.3500 points, then the currency pair would be unable to make any significant progress as of now. But the pair’s bulls have yet to reveal how they plan to handle this dilemma in the pair as the USD is expected to be more level in the next few days on the back of an increase in oil prices.

The 1.3500 region has proven to be very crucial for the USD/CAD pair since the currency pair has been unable to overcome this pair for several times in a row. The currency pair would have to have large-scale buys in order to push past through this region and reach 1.4000 points. As of the moment, the Canadian economy has been throwing up some fairly decent economic data, although the Canadian trade balance data had somewhat paled and could be a precursor to a dismal future for the country’s economy. The trade balance data was at a negative while the market was expecting a positive reading, and this basically means that the country’s imports and exports are most likely to suffer in the long run.

However, the increase in oil prices could possibly provide a short-term breather for the Canadian economy, and since the USD is expected to experience short-term consolidations, the USD/CAD pair would most likely follow this particular trend and consolidate within 1.3300-1.3500 points. However, the pair is still not strong enough to surpass 1.3500 in the near future.

For today’s session, there are no releases from the Canadian economy but the US will be releasing several economic readings, such as the ADP employment change data and the FOMC meeting minutes. The NY session could possibly be met by a significant amount of volatility and if the pair’s price touches the 1.3500 range, then this could be a great opportunity for a stop loss.

GBP/USD Fundamental Analysis: April 5, 2017

The GBP/USD pair continues to consolidate within the 1.2400-1.2500 region as the market is anticipating the release of the FOMC meeting minutes as well as other several important economic data which are all scheduled to be released today and later within the week. The market has previously been predicted to be generally very lackluster with little volatility levels due to several traders preparing themselves for the slew of economic data which will be released in the coming days.

The UK PMI data has just been released and since this has met initial market expectations, this has put a stopper to the dangerously high levels of selling which affected the GBP due to the disappointing economic data released last Monday. As of the moment, pound traders are teetering off the edge as the Brexit process has now officially commenced and since there are no clear expectations with regards to how the negotiations between the UK and EU officials are about to pan out, traders are uncertain whether to go short or long on the GBP/USD pair and is now waiting for the release of economic data today as this will be their basis for their trading decisions on the GBP/USD pair as well as to have an inkling with regards to the state of the economy.

The GBP/USD would most likely be bogged down by the uncertainties of the Brexit process, with UK citizens possibly cutting down on their spending habits as they prepare for the worst repercussions. Once everything clarifies, then it would enable a clearer analysis of Brexit as well as an accurate depiction of the UK economy. For today’s session, the UK PMI data will be released later and the US will also be releasing a slew of economic readings, such as the ADP Employment change data, the FOMC minutes, and the Manufacturing PMI data. These are all expected to induce volatility in the GBP/USD pair, with the pair possibly advancing towards 1.2600 points.

EUR/USD Fundamental Analysis: April 5, 2017

The EUR/USD pair is still trading within a very limited range, although the pair’s bulls have somewhat managed to maintain its hold on the currency pair in spite of the pair’s inability to move in any definite direction for quite a while now. The pair’s bulls were initially expected to surrender its gains in order to enable the EUR to advance towards 1.0500 points at least prior to the FOMC meeting, but so far this has not yet occurred and it is possible that the minutes will be released with the EUR/USD pair still trapped within its current trading range.

The market was taken by surprise yesterday as Fed member Lacker tendered his resignation after admitting that he had leaked top-secret information with regards to the 2012 FOMC meeting to a certain financial institution. Lacker has also stated that the firm’s analysts had the said information but regardless of Lacker’s manipulation of the said statement, it remains clear that he has illegally leaked confidential information and subsequently resigned when the said scheme was revealed. The USD had surprisingly no reaction to to this particular news once it was released.

However, during today’s session, the USD backtracked across the board as the EUR/USD pair surged from 1.0650 points and traded very near its range highs of 1.0680 points. As of the moment, the market is now in a consolidating move as a lot of economic data are expected to be released later today. The ADP Employment Change data will be released today, which is an important piece of economic news since this is largely considered as a basis for the result of the NFP report. The US Manufacturing PMI data will also be released, followed by the FOMC minutes towards the close of the NY session. A volatility surge is expected prior to the release of the FOMC minutes and as such, traders are advised to tread very carefully with regards to trading with the EUR/USD pair. The pair’s bulls are most likely to dominate the pair and could enable the EUR/USD pair to inch higher during today’s series of sessions.

EUR/USD Technical Analysis: April 5, 2017

The single European currency earned support from the upbeat figures of Eurozone’s Producer Price Index (PPI).

The bigger picture showed negative stance on Tuesday. The EUR sustained a neutral position in the morning. The major were trading in a tight channel within the middle points 1.0650 - 1.0675.

The downward pressure were fuelled up in the afternoon. Sellers struggled to break under the handle, however, they were unable to achieve it.

As the 4-hour chart delineated, the spot attempted to made a gap through the 200-EMA and hovered around it. At the same time, the 100 and 50-EMAs faced lower while 200-EMA is in the neutral seat.

Resistance came in at 1.0700 level, support is at 1.0650 mark

MACD histogram softened indicating a sell signal. The RSI trailed downwards confirming sellers’ strength.

The EURUSD pair contains a moderate bearish perspective. A move down from the 1.0650 region would trigger bearishness near 1.0600 range.

GBP/USD Technical Analysis: April 5, 2017

The British pound whittled away its strength after the downbeat figures of PMI Construction of Britain. Moreover, the sterling attempted to made a reversal in the night as the sell-off took place last Monday.

On one side, the buyers send the price back through the 1.2500 region and the major tend to move towards renewed offers. The GBPUSD spent the day under the selling pressure in the course Asian mid-session.

The spot lose its legs throughout the night and move close to 1.2400 in the first part of the day. The downward pressure was short-lived enabling the major to recover few of its losses.

Given in the information from the 4-hour chart, the spot rebounded the 50-EMA lower in the Asian trades, it further tested the 100-EMA in the day. The 100-EMA cross over the 200-EMA and resumed an ascending trend. The 50-EMA drove down and the 200-day moving averages were neutral as indicated in the timeframe.

Resistance approached the 1.2500 area, support take control of 1.2400 region.

The MACD histogram slumped which signaled sluggish position for the buyers. RSI headed southwards, confirming an ongoing downtrend.

A move down from the 1.2400 level is the next most possible scenario.

AUD/USD Technical Analysis: April 5, 2017

The Reserve Bank of Australia (RBA) coincided expectations as they maintained its rate. The Australian dollar lose its legs after the release of weaker statistics for labor and inflation. Furthermore, the AUD was laid out near the pressured area on Tuesday. With this, the spot took a dip on its renewed multi-week lows on Tuesday.

The price was removed from the region 0.7600 during the daily open. The Aussie extended its trading near the negative zone throughout the night until it reached 0.7550 level the next day.

The easing of the selling pressure took place over the handle while the major attempted to begin a consolidation.

The AUDUSD resumed its development below the moving averages specified in the 4-hour chart. It further presented the 50-EMA to crossed down to the 100 and 200-EMA alongside the crossover set by 200-EMA to the 100-EMA. Moreover, the 100-EMA became neutral as the 200 and 50-EMAs continued a downtrend.

Resistance pierced 0.7600 area, support is at 0.7550 mark.

The MACD histogram dwindled highlighting strength for the sellers. RSI indicator settled in the oversold grounds, indicating a fresh downward trend.

The commodity-linked pair stalled near 0.7550 and the downfall is anticipated to last longer. The next focus of the pair would probably the support 0.7500.

NZD/USD Technical Analysis: April 6, 2017

The economic calendar of New Zealand appeared to be uneventful, however, the major got some support from the positive remarks of Moody’s triple-A rating for New Zealand. On one side, the US dollar remained to be in control prior to Trump-Xi Summit.

The NZD/USD maintained a neutral stance confined over 0.6950 level throughout the night session. The spot witnessed renewed offers in the first part of the day and headed downwards. The pair continue its attempt in reaching its 3-week lows later today.

As defined in the 4-hour chart, the spot remained to develop under the moving averages as the 50 and 200-EMAs dive lower. Furthermore, the 100-EMA pushed higher and the 50-EMA go over the 100-EMA.

Resistance is at 0.7000 mark, support is found at 0.6950 area.

The MACD histogram preserved the same grounds indicating strength for the sellers. RSI indicator touched the undervalued zone, confirming additional move upwards.

The commodity-linked pair is expected to resume its negative sentiment. A close under support region 0.6950 would likely see the pair to persist a downturn to 0.6900.

GBP/USD Technical Analysis: April 6, 2017

The British PMI Services exceeds anticipated results providing support for Britain’s currency. The Great Britain pound came in positive during Asian trades yesterday. The major were developing well over the night. Also, the GBPUSD met a renewed buying-wave amid morning session of Europe.

The price continued to grow and spiked towards 1.2500 region, but the spot found a selling interest stalling its progress.

It can be witnessed in the 4-hour chart, the major to test the 50-EMA and kept its position. Moreover, the timeframe outlined the 50-EMA downward trend, 100-EMA preserved a bullish pattern and the 200-EMA arrived neutral.

Resistance came in at 1.2500 mark, support pierced 1.2400 level.

The MACD histogram sustained its previous stance confirming sellers’ strength. RSI oscillator aimed higher.

Regardless of the fresh buying interest, the pair has uncertainties for its future. The buyers appeared slightly weak in sending more gains causing the sterling to move to the downside. The pair had to touch below the range 1.2450 to bring about a new downward impetus to test 1.2400.

EUR/USD Technical Analysis: April 6, 2017

The weak Eurozone PMI place pressure on the common European currency yesterday. The EUR/USD fixates on the release of ADP employment report and FOMC minutes later this day.

The EUR appeared neutral in the morning. The price moves in a familiar trading range positioned between the points 1.0650 and 1.0670.

The rebound occurred on Tuesday supported the spot to reach the upper limit of the range by which the upward momentum dwindled. The pair trailed the band’s upper limit and advance lower in the middle of the day amid EU hours.

As specified in the 4-hour chart, the pair rebounded below the 200-EMA and the 50-EMA resumed a downward trend. While the 200 and 100-EMA drove higher.

Resistance is found at 1.0700 region, support hit 1.0650 mark.

The MACD histogram strengthened which showed weakening for the positions of sellers. The RSI headed northwards confirming a current upward impetus.

It is recommended to remain neutral unless clear signals were obtained. A break in the 1.0650 area targets the next level at 1.0600. Should a rebound occurred within the mentioned range allows the buyers to regain the control and posting the market near 1.0750.

EUR/USD Fundamental Analysis: April 6, 2017

The EUR/USD pair is yet again trapped within a very limited trading range, which has been the pair’s dominant trend ever since the start of the week. The slew of economic data from the US economy did little to push the currency pair through its current range, although it has tested both barriers but has not yet come close to breaking through this particular range. However, the market is expecting the currency pair to make a breakthrough anytime within this week, and a break in any direction is expected to be very large-scale, with runs possibly occurring.

The EUR/USD pair traded tightly during the Tokyo and London sessions yesterday as it awaited for the release of economic data from the US. The ADP employment report was the first to come out, with the said data exceeding initial market expectations of less than 200K after it came out at 250K. Although last month’s reading was revised as a result, 250K is still a very strong average if we take into consideration the reading for the two previous months. This also marked the continuation of a steady stream of positive data from the US economy. In addition, this also put the EUR/USD pair under pressure and tested its range lows of 1.0630 although it made a small recovery towards the end of the session.

Next up was the release of the FOMC meeting minutes, which was very lackluster as it did not contain any relevant information for traders. The said minutes contained only balance sheet discussions and did not induce enough volatility for the EUR/USD pair. The USD was also put under pressure as the majority of House members expressed major uncertainties with regards to Trump’s tax plans, and this has helped the EUR/USD to recover towards 1.0680 points.

For today’s session, there are no major news releases from the EU economy although the US will be releasing its unemployment claims data. The USD is expected to remain under pressure for the duration of today’s session, with the EUR/USD remaining afloat and could possibly break through its range highs at any point within today’s session.

GBP/USD Fundamental Analysis: April 6, 2017

The GBP/USD pair continued its current trend of trading within 1.2400 and 1.2500 points, something which is already pretty much anticipated by analysts yesterday. The GBP/USD pair is expected to break through this trap any time now, but even if it does manage to surpass this particular range, there is still a lot of resistance and support amounts on both barriers and the currency pair is not expected to go far in terms of its range. It would take a lot of clearing up for the Brexit process including its ongoing negotiations before the market can form a substantial opinion regarding the current status of the British economy, and only then will the sterling pound be able to move towards a specific direction.

The UK Services PMI data was released yesterday and came in at a much better reading than what was expected in the first place. This has then helped to offset the imbalance caused by Monday’s PMI data, which was generally a disappointment to the market. The ADP employment report also exceeded market expectations and this has caused the GBP/USD pair to test its bottom range at 1.2450 but was still unable to surpass this particular boundary. The FOMC minutes then got released during the latter part of yesterday’s session, although this had almost no effect on market volatility. There were also news regarding concerns surrounding Trump’s tax plans, and this has put significant downwards pressure on the US dollar and caused the GBP/USD pair to advance towards 1.2500 points.

There are no major news releases expected from the British economy although we do have the US unemployment claims data set to be released later today. The SUD is most likely to remain under pressure today, and the GBP/USD pair could possibly test 1.2500 points, and could even reach 1.2600 points if it manages to break through its current range.

USD/CAD Fundamental Analysis: April 6, 2017

The USD/CAD surged in value during yesterday’s session following a series of strong US data and a drop in oil prices. Although the US dollar decreased significantly as a reaction to a very disappointing FOMC meeting minutes, it has still somewhat managed to maintain its grip on its advantaged against the Canadian dollar and is currently trading at its safe zone of just under 1.3450 points and could possibly be poised for more gains within the day. The pair’s bulls are currently at ease since the USD/CAD has managed to surpass its range highs of 1.3400 points. However, there is still the heavy resistance found at 1.3500 points which could possibly be overtaken by the pair’s bears.

The ADP employment change data from the US came out on a very impressive note yesterday, and this has enabled the USD/CAD pair to break the 1.3400 barrier. The pair was also generally unaffected by the dismal FOMC meeting minutes, and was even unshaken by Trump’s tax plans which are currently in hot water from House members. The major reason for this is the CAD’s significant backing from a drop in oil prices after it fell from $52 and is now priced at just $51. This was mostly because of the API data which exhibited a major buildup, bearing bad news for the CAD and thereby pushing the pair towards its range highs of 1.3450 points.

The Canadian economy is not set to release any important economic data until tomorrow, while the US will be releasing its unemployment claims data today. The USD/CAD pair is then expected to merely exhibit ranging and consolidation for the time being.

GBP/JPY Technical Analysis: April 6, 2017

The British pound against the Japanese yen broke in the upper channel during the Wednesday session which is a sign of consolidation. The market will most likely try to reach the 140 handle but there is a noise down below for a long-term pressure. A break lower than the 50% Fibonacci retracement level gives a bearish bias which would push the trend to fall towards the 134 handle. Overall the pair gives a choppy atmosphere and with trading activity moving fast. With the ongoing Brexit process, this would affect the trading for this pair.

GBP/USD Technical Analysis: April 7, 2017

The national currency of Britain remained neutral in the morning. The GBP/USD stayed within its fresh highs during the night. The major was selling aggressively during the first part of the day as the price declined near 1.2460 level.

Having renewed its sessions lows the spot cool down. Meanwhile, the British pound was unable to resume its advancement and turned back in the mark amid late session of Europe.

A renewed selling pressure emerged prior the onset of New York hours. The major lost its strength as it moves towards the region 1.2420.

The spot kept intact around the 50-EMA while 100-EMA trailed lower determined in the 4-hour chart. Furthermore, the 50 and 200-EMA came in neutral.

Resistance is found at 1.2500 mark, support entered 1.2400 region.

The MACD histogram lies at the centerline. On one side, the indicator entered the positive grounds, it will show increasing strength of the buyers and on the other hand, a return to the negative territory would let the sellers be in the driver’s seat. RSI alighted neutral.

The bullishness remain unless we witness a break on top of 1.2450 range. Buyers struggled to regain 1.2500 in the next sessions. Otherwise, the 1.2400 area is considered the next intraday support and probably a bearish objective.