Daily Market Analysis by ForexMart

USD/JPY Technical Analysis: May 5, 2017

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 in 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.

EUR/USD Technical Analysis: May 5, 2017

The EURUSD rallied on Thursday hitting the 1.0950 region which the top of the latest consolidation. As the job number will be release, it is expected the market will struggle to make some progress.

The level below 1.09 appeared to be supportive, en route 1.08. A break in this area would suggest a strong signal towards the mark 1.10 along with the issuance of the Nonfarm Payroll. Hence, a cut through the 1.10 will push through 1.12.

Meanwhile, the market anticipates for a favorable result, however, the pair extended its uptrend because of the “risk on” type of announcement.

The most probable scenario is that the pair will pull back, considering the 1.0900 area since Asian traders stayed on the sidelines due to volatility.

If we surpassed below the range 1.0830 amid the session, the dive will enable to fill the gap towards 1.0750.

Moreover, the positive sentiment on the back of Wednesday’s FOMC meeting aided the USD in recovering but the winning streak seems short-lived. A soft tone surrounded by the American dollar also helped the European currency to reacquire 1.0900 yesterday.

The EUR reversed its losses during the noon session highs of Europe found at 1.0940. The technical indicators appeared to be positive based on the 4-hour chart.

Resistance lies at 1.0950, support entered 1.0900.

USD/CAD Fundamental Analysis: May 8, 2017

The USD/CAD pair had an ambiguous trading action during the previous week as the pair seemed to sway without outlining any specific direction for itself. The currency pair initially moved consistently upwards as it was able to break free from the chains of the 1.3500 trading range, where it was met with strong buying activity which just led to the currency pair making more progress than ever.

The USD/CAD pair was able to make significant headway last week as it was able to move within the 1.3800 range. All of the pair’s recent corrections were not met with any significant follow throughs, and this further cemented the market’s confidence in the pair’s bullish undertone, and the signs last week just showed the justification of this particular market sentiment. The recent drop in oil prices contributed to a weakening in the value of the Canadian dollar and further incite the bullish trend of the currency pair. As the pair approached the end of last week, the currency pair’s correction began as oil prices managed to recover its losses. In addition, the USD also bore the brunt of the negative effects of a disappointing wages report which was released last Friday. The pair has since then plummeted beyond its range lows and now sits at just under 1.3650 points.

For this week, the US will be releasing its CPI, PPI, and retail sales data, while there are no expected releases from the Canadian economy. Oil prices could possibly maintain its bearish attitude, which means that the USD/CAD pair will continue to be bullish. Now that the currency pair’s resistance level has been broken through and with support levels drawing within 1.3550 points, the currency pair is expected to remain afloat and push through with its bullish attitude for the rest of this week.

EUR/USD Technical Analysis: May 8, 2017

The EURUSD softened this week but it performed well on Thursday. It is because of the projection about the employment figures released on Friday. The number have been strong and triggered a “risk on” trades. With this, we have touched above the 1.10 mark, which is regarded a significant psychological level that provided a resistance and support previously.

This weekend talks about the election in France and possibility of the status quo candidate to be elected. This favors the Euro due to the fact that it constrains the concerns about France leaving the Europe.

The technicals showed the 1.10 region will offer a significant number of resistance but during the closing week, the market proved that they are ready for any challenge.

An ability to cut through over the mark 1.10 any time will bounce back to 1.12 area. There is also possibility to talk regarding the 1.15 handle

The EUR/USD established an uneven position lately and the current gap has to resume in order to prompt a bullish tone.

It is projected that a break will offer some support after any reversal or surprise announcement which indicates lots of buying pressure is anticipated within the handle 1.0750.

With that said, the buyers appeared to be in the driver’s seat, it further signaled for a move higher.

NZD/USD Technical Analysis: May 11, 2017

The New Zealand dollar surged during the Wednesday session with 0.69 level as the starting point. The 0.6950 gives a strong resistance and it seems that this will be followed by a consolidation. The market might need to push more but if this breaks higher than the 0.6950 level, then this could climb higher probably reaching towards the 0.70 and below.

Reversals might take long to occur despite that there is a high buying pressure below. Although the consolidation could stretch up to 0.6850 level and below matching the current trading levels.

The kiwi is highly sensitive to the commodity market which persists to be volatile. In turn, this also affects the New Zealand dollar. The kiwi is easier to monitor since there is a high demand for ETFs in the whole commodity market which is highly influential to the NZD/USD pair. If the pair breaks out and reach a new high, this opens more buying opportunities. Yet, there is a high volatility in the market that makes easier currencies are traded more in the market right now. The market waits for more blatant indicators in the market.

USD/JPY Fundamental Analysis: May 15, 2017

The USD/JPY pair closed down on a much lower note during Friday’s trading session as investors reacted to a disappointing retail sales data and consumer inflation data from the US economy, which created a bearish bias for fundamental traders. Technical traders soon became bearish as well when the currency pair closed down under the 50% level at 113.390 points. The USD/JPY pair closed down the previous session at 113.323 points after decreasing by -0.47% or 0.535 points.

Today’s session could be subject to a pronounced weakness during the first few hours as a result of an insubstantial follow-through selling which was mostly due to the weak news releases from the US economy. The dismal data from the US economy could mean that there could be lesser rate hikes from the Federal Reserve within the year, although it is highly unlikely that the central bank would postpone its scheduled rate hike next month. In addition, several traders are now moving their funds from high-risk assets into safer ones such as the Japanese yen after traders became concerned with the widespread cyber attacks last week, which could possibly affect today’s trading session. The said cyber attack, which was able to hit over 200,000 victims in over 150 countries, could possibly worsen today since most people will be going back to work today.

As such, the USD/JPY pair is expected to undergo significant trading pressure following a mixture of both fundamental and technical factors, although selloffs in the currency pair could possibly heighten if the said cyber attack indeed worsens throughout the day.

NZD/USD Technical Analysis: May 22, 2017

The New Zealand currency experienced a volatile session amid Friday trades as it broke on top of the 0.69 handle. A grasp to the level 0.6950 was highly resistive which is better than all the range for the previous weeks.

A break on top this region is considered significant looking forward through the top of 0.70 mark, this also allows the market to drive higher.

Moreover, the market would likely maintain its volatility and choppiness. The kiwi was highly sensitive against the risk appetite which appeared to be unpredictable at this moment. With that being said, the thought that the NZD will be one of the complicated currencies to trade is possible. The “risk on” sentiment has returned in the market favoring the profits for the buyers.

Moreover, the market will remain choppy and volatile for the next hours and the 0.6880 region below contains a massive support.

The “buy on the dips” will further extend, however, headwinds on top of it are within reach. In this case, the market has to provide lots of trading opportunities intended for the scalpers but the short-term traders will remain to draw attention towards this.

There will be some struggle that longer-term traders will experience, in order to search for a suitable position. Therefore, holding a trade for a lengthy period is difficult as there could probably some real size ongoing.

GBP/USD Technical Analysis: May 22, 2017

During the Friday session, the pair GBPUSD remarkably did well since an extreme and rapid price decline occurred on Thursday. While an uptrend is tested, however, a turnaround was carried out promptly.

As the traders calm down, the market eventually break out in the upside hitting the top of the 1.30 region. In the previous trades, a renewed highs were formed and the Britain’s currency would likely look forward through the 1.3450 area that has consolidated in the longer term.

A break on top of the range 1.30 seems significant and the flash crash happened on Thursday still not clear which brought fears to many people. Moreover, the uptrend line amid that sudden drop matters a lot and it appears that the 1.29 mark can be the acting basement of this market.

The choppiness was still expected to continue but the market may indicate a bullish attitude.

The pullback eyes some support within the level 1.30 but a breakout towards a fresh peak would trigger a buying behavior.

The GBP attempted to change its general trend in the upside which could go a long way throughout establishing trend confidence.1

In addition, the uptrend will continue since the moving averages drove to the upside and selling is not an option at all. While a move forward would pave the way for the “buy on the dips”.

EUR/USD Technical Analysis: May 22, 2017

The EURUSD ride out a strong Friday session as it broke on top of the mark 1.12. This signaled for a bullish indicator while U.S traders started to buy again the common currency. It further illustrate confidence for the euro, as the “risk on” trade is expected to extend along with the buying dips with a noise identified above it.

Based on the long-term, the market is projected to move forward the 1.15 region, however, we anticipate for some pullbacks. It shows that the market are apt to resumed pushing upwards.

The final session appeared to absolutely bullish for the EUR which probably be the overall trend and had to cool off this territory in the near-term.

The strategy of buying on the dips should be implored since the run-off seems pretty well and this sets the momentum on the buyers’ side, however, the impetus did not last long.

After the pullback, it would likely provide few area where buyer could make a return. The 1.11 and 1.1150 is considered an ideal levels. With this, the activity amid Asian trades has to be seen and we suppose each time a pull back is done, a significant amount of value will be collected within the market.

A break over the 1.15 range is hoped for considering it's the leading among the ree-year consolidation area that have been traded in.

USD/JPY Technical Analysis: May 22, 2017

The U.S. dollar against the Japanese yen broke in the upper than stabilize the currency pair during the Friday session. This indicates that the market had adjusted with the minimal risk this weekend which is a positive thing.The trading has been strong which is being monitored by traders and they try to bring the price higher than the 112.50 level. Although, as of the moment, the trend is currently in accumulation. If the market could break higher than the 112.50 level would give a bullish tone in the market and would move the price continue to 114 level. This would even go higher when the Federal reserve decided to bring the interest rates higher and this possibility of raising rates caused selling early this week.

The U.S. jobless claims declined which is one of the major directives of Federal reserve that would most likely impede the interest rate hike. Others would want to be dovish or totally forget about it but it is not plausible to do so as the U.S. has eased monetary for the past years and is not exemplifying expected results. On the other hand, the employment is being tight indicating the strengthening of the economy which would bring the interest rates higher as expected.

AUD/USD Technical Analysis: May 22, 2017

The Australian dollar against the U.S. dollar started quite low on Monday sustained trading within the trading range on Friday reflecting uncertainty and approaching volatility. The price closed at .7454 and today’s trading will depend on market activity reacting to 50% at the same price. There are no major reports from Australia and U.S. that caused less activity in the market hoping news that would elicit volatility.

The major trend is moving on the downside as shown in the charts. This would reverse once the market breaks over the .7556 level while a move towards .7329 level signals completion of the downtrend.

The AUD/USD pair is recovering coming from lows on May 9 at .7329 region but hampered by the major retracement area. It is too early to tell that is moving higher following a rally for nine consecutive days.

The main trading range is seen between .7558 to .7329 with a retracement zone from .7442 to .7469. The major 50% level is found at .7454 as it is purchased at a fixed price. The market reaction will determine who dominates the market, either the buyer or seller trying to reach a secondary support level.

If the price moves beyond the .7454 level implying the presence of buyers which could result in a surge for short-term with a Fibonacci level at .7469. Surpassing the said level would elicit further uptrend towards the down trending angle at .7468 that will probably position as a resistance level. It could move towards .7509 then .7521 level.

On the other hand, a sustained move below the .7454 regions implies the dominance of seller. The primary target in the lower channel is at .7442 50% level and a break into this angle would push the price towards .7419 level.

The .7419 level is the major level directing the pair to move higher comes. However, if the pair failed to maintain the level, it would fall towards the .7384 Fibonacci level. Traders should monitor the .7454 region to monitor the price action and determine who leads the market.

GBP/USD Technical Analysis: May 23, 2017

The GBPUSD go through a very volatile session during Monday trades, seeing the market to rise and fall due to the large-scale headlines that continually have divergent opinions.

The issue regarding the withdrawal of Britain from the European Union persist and dominates throughout the market, so we should further expect some volatility.

The region 1.3050 above offers some resistance in the near-term, however, there is a possibility that the Cable will be pushed in the longer term. Pullbacks should still be expected but should provide some value. While the level 1.2975 is becoming the support as it keeps on grinding upwards. A cut through on top of the 1.3050 mark signals for the continuous uptrend in the market which also shows that the momentum is already starting. this could be a complicated action however the buyers are currently in the driver’s seat. The choppiness will remain alongside with a bit of an upward bias which could offer an advantage.

Through employing the short-term pullbacks intended for buying opportunities is suitable to gain an edge over the bullish pressure and this could also be the way to reaching the top level of the consolidation area that lies at 1.3450.

Apparently, the market is too delicate to deal with as of the moment and yet, an ascending triangle shows up which mean that there a significant amount of bullish pressure starts to develop.

Recommendations say that the market should refer towards the area 1.32 or much more move near the longer-term charts. Additionally, selling is not a thought by this point in time.

EUR/USD Fundamental Analysis: May 23, 2017
The EUR/USD pair has maintained its current price action during the previous trading session as the USD remained on the backfoot yesterday. The EUR/USD pair encountered some minor correction during the course of yesterday’s session and this caused the pair to retreat towards 1.1200 points for a couple of hours, although it eventually became clear that both the market traders and investors were preparing themselves instead for a bullish action in the pair instead of any major correction in the pair.
The pair’s movement towards 1.1200 points remained for a few hours into the trading session yesterday, but then the pair eventually moved out of this particular range and had begun to surpass 1.1200 points in time with the opening of the European session. Germany’s Merkel also made a speech during the session wherein she expressed her concern regarding the weakness of the euro, which has caused a drop in the value of Germany-based goods. However, this was not a surprising fact for investors as this has been the country’s stance for so long with regards to their monetary policy. But investor sentiment is not what the market is focusing on these days since the current market trend is now what the general market sentiment is. This was then seen as a trigger for a surge in the value of the euro, and such, this was followed by a euro buying which enabled the EUR/USD pair to advance towards 1.1250 and even managed to reach 1.1263 points, where it was met with a large-scale selloff. The currency pair remains trading within this particular range, with 1.1300 as the pair’s next medium-term target.
For today’s session, the market is expecting the release of the Flash PMI data as well as the German IFO Business Climate data from the German and French economy, while a couple of Fed officials will be involved in some speaking engagements, wherein they are expected to say that the rate hike schedule next month is off the charts for now. The EUR/USD pair is then expected to trade with a bullish undertone and could possibly test the 1.1300 trading range.

GBP/USD Fundamental Analysis: May 23, 2017

The GBP/USD pair has still refused to join the tumult caused by other major currencies rallying against the greenback. In addition, the market was wrecked by news of a bombing at Manchester, which killed a total of 19 people and has injured over 50 people in its wake, in what has been confirmed as an all-out terrorist attack. Although the reaction of the sterling pound to this particular news has been somewhat muted, it has certainly caused the GBP/USD pair to drop in value, wherein it is not expected to become bullish since the Manchester bombings has made headlines today.

The GBP/USD pair started off yesterday’s session a weak note following reports that the UK government might cancel the Brexit negotiations if the EU officials would implement a lot of harsh conditions. These developments are all expected to maintain the downward pressure on the cable pair as the UK economy enters a very critical period next month due to the oncoming snap elections and the Brexit talks immediately after the elections. However, the cable pair did manage to make a slight recovery during the European session, with the pair reverting to 1.3000 and even managed to test 1.3030 points before being met with a lot of selling and correcting towards 1.3000 points following the news of the bombings. The GBP/USD pair is then expected to remain under downward pressure for the duration of today’s sessions.

For today, there are no major releases coming from the UK economy, while a couple of Fed officials will be making speaking engagements later in the day. Since the recent bombings at Manchester would most likely dominate the international headlines, the GBP/USD pair is expected to remain safely consolidating on both sides of 1.3000 points with bearish undertones.

USD/CAD Fundamental Analysis: May 23, 2017

The USD/CAD pair has been exhibiting a very disappointing price action ever since it was able to test its range highs at 1.3800 points during the start of this month. The currency pair has been suffering from the repercussions brought about by the greenback’s weakness and the strength of the loonie which was mostly due to an oil price surge. This oil price increase was able to cover up the actual occurrences within the Canadian economy and has provided enough leverage for the loonie to advance, and this is why the USD/CAD pair has been consistently dropping value during the last two weeks.

As of the moment, the currency pair is now within a very critical region of 1.3500 points, where it continues to look very weak. The weakness of the greenback has been the dominant market trend as of the moment, with the dollar getting adversely affected by Trump’s political woes, which in turn has affected the US economy as well as its monetary policy. The market had initially priced in a rate hike this coming June, but with the recent slew of dismal events, it looks like the market’s players might have to put off this interest rate hike at least for now. In addition, the rising oil prices has helped the loonie to retain its positive image amidst Canadian banking concerns, wherein the majority of Canadian banks have been given the thumbs-down by ratings agencies. The loonie strength has also helped to offset the concerns surrounding the HCG and the housing sector.

For today’s session, there are no major news releases coming from both the US and the Canadian economy, although some Fed officials will be making statements today with regards to the US monetary policy. All these are expected to add downward pressure on the USD/CAD pair and cause the pair to test its support levels.

AUD/USD Technical Analysis: May 23, 2017

The Australian dollar had a very active session on Monday and broke in the lower channel. It continued the downtrend and fill the gap and reversed after reaching the 0.7425 region and rallied uphill. As the sellers come back, there is a few pullback until enough volume and momentum are seen to break higher than the said level.

The currency is very sensitive to the gold market and it follows its movement over the long-term. However, pullbacks may offer some value as it reaches near the 0.7450 level which has been resistive for some time before. If the market breaks higher than the 0.75 handle, the trend would climb higher towards the 0.80 level although this may take some time.

On the other hand, if the gold market declines, then the next target region would be at 0.74 and below. Breaking this level could go even lower towards the 0.7350. As mentioned, the currency is highly sensitive to the market appetite for risks and traders should look out for it as other assets gains globally and Aussie is anticipated to follow.

There will be high volatility in the market while some traders avoid the U.S. dollar for short-term which would put bullish pressure in the market. Also, traders should anticipate choppiness in the market. A hammer pattern is seen in the weekly charts and is could position at the bottom in the charts.

EUR/USD Technical Analysis: May 24, 2017

The EURUSD attempted to move through the higher region on Tuesday, however, failed to maintain its gain upon reaching the level 1.1268. When the profit taking started the pair was pushed beneath the 1.12 handle.

Meanwhile, the stronger report of GDP and sentiment data buoyed the EUR/USD and the yields turned up in Europe as relating to its American counterparts. Moreover, the PMI readings kept unchanged in the month of May, as the German nation lead the charge that reflects towards a strong growth.

The major pair touched the higher high as it eclipses the prior day high using 5 pips. The resistance is found at 1.1299 level close to November 8 highs and in case the level will be broken, it would lead to testing 1.1365 region near its August highs in 2016.

The support entered the mark 1.1603 around the 10-day moving average. Momentum is slow-moving, seeing the moving average convergence divergence (MACD) print in the black together with a descending trajectory that drives towards the consolidation.

NZD/USD Technical Analysis: May 24, 2017

The national currency of New Zealand attempted to rally on Tuesday, however, it rolled over. As of this writing, it starts to move near the 0.70 region. In case that the area will be dropped, the market will tend to had a significant roll over while the shooting star begins to form on the daily chart. Having said that, the breakdown beneath the level 0.6980 would likely breakdown the mark 0.6980 below. The NZD will roll over and look for the 0.6925 eventually.

On the other hand, a break on top of the high during the session will indicate a bullish signal as expected, as the market tend to move near 0.7250 area. Alternatively, the market is having a volatile environment as it bears a shaky ride.

The New Zealand dollar is highly sensitive to the commodities and you should be cautious to the general market sentiment because it points further directions.

As the market prepares to conduct a determined plan and you should place a trade based on the breakout on top of the daily range or a breakdown underneath the 0.6980 mark.

Moreover, the Aussie were seen to move on the same path just like the other two pairs which favors the idea of trading with the breakout. And this suggests that it is much easier to drop lower because going up would mean dealing with lots of confusing underlying trends.

AUD/USD Technical Analysis: May 24, 2017

The Australian currency against the U.S. dollar broke above the 0.75 level but was also reversed soon after. If the price breaks lower than the 0.7450 region, the price would further decline. This is also similar for the long-term trades.

The gold market directly influences the pair including the risk appetite for these trades. However, it seems that the gold market is not performing well. The raw material trades from Australia supplied within Asia is also falling since there is low demand for copper and iron which are the fundamental trades of the country.

In a long-term trend, it seems that the market sustains the current trading condition. Its downtrend could attain up to 0.70 level for long-term. If the price breaks higher than the 0.7525 region, it could reach its way about the 0.7750 level for a longer term.

However, reaching the said level won’t be easy. Although, the market usually change position in a bullish pattern and makes it more complicated when the market worries. This is what anticipated to happen when the price soars that makes pullbacks not surprising anymore. The uptrend line is noticeable on the hourly chart and a break lower than the 0.7450 level would bring the price down with an increase in bearish pressure.

USD/JPY Technical Analysis: May 24, 2017

The U.S. dollar against the Japanese yen had a calm trading During the Tuesday session. The price rallied higher because massive support found at 111 level. The market tries to push it higher towards the 111.50 region and this could even go higher reaching towards the 112.50 level above which has been a significant psychological region previously.

With the fluctuation in the stock market, traders should monitor the indices especially the S&P 500 because of its high sensitivity to risk appetite. This would hint the next move in the trading market as there is a high correlation between the two. The Japanese yen being a safe haven asset would bring about greater risk appetite when it proceeded with a sell-off. This is a positive indication since a massive bullish candle was formed during the day.

If the price breaks higher than the 112.50 level, the current long-term uptrend will be sustained. This is a strong indicator but the market could attempt more than once to be successful as the market would most likely climb higher.

However, when the price breaks lower than the 112.50 level instead, the massive support will remain as of how it was in the past. The stock market is gaining momentum which could also push the price higher for long-term with a strong correlation with the stocks. Hence, traders should monitor changes not only in forex market but also in the stock market.

EUR/USD Technical Analysis: May 25, 2017

The EURUSD bounced off from its sessions lows after the release of a weaker than expected data in U.S housing last Wednesday.

The confidence index for Germany continued to increase while the European Central Bank was on the tape, expressing diverging statements. This confuses many traders thinking about how will the ECB cope with their remarks on the back of the monetary policy meeting scheduled on June.

The pair starts to form a bull flag pattern that served as a pause to stimulate. While price creates a Doji day that came up during opening and closing of the same level, as it reflects a market indecision.

The support came in at 1.1094 region close to the 10-day moving average. Resistance is found in the area 1.1299 around the highs of U.S. election day on November 8.

A break within this region will test the 1.1365 mark near the highs in August 2016. The momentum became neutral because the moving average convergence divergence (MACD) printed in the black, however, the histogram declined which slowed down the positive impetus and further indicates a consolidation

GBP/USD Technical Analysis: May 25, 2017

The sterling pound had an initial attempt to conduct a rally amid Wednesday trades, as it tests the level above 1.30 region. This is an important area and a break on top of it would indicate a bullish signal.

As of this writing, the ascending line was maintained and buyers would likely enter the market as soon as possible. A breakdown underneath the uptrend line will trigger the market to test 1.29 handle, which appeared to be supportive. Further breakdown around the handle, will indicate a negative sign in the near-term, but it looks like that more support can be found below.

An attempt for a reversal is deliberated, however, the Cable was highly volatile as expected, considering the headlines issued from Brussels and London that could move the market unexpectedly.

Having said that, the conditions are going to demonstrate choppiness and a smaller position size should be mainly considered. Nevertheless, a rally within this direction will suggest a long-term trend towards the upside, requiring the position size to be not so big. Otherwise, an investment that could reach the 1.3450 range above.

Furthermore, a gap through 1.2750 below will cause the market to slide and return to a bearish long-term move. In case this happens, the fall is assumed to be in an abrupt manner.

The bullish bias will remain along with the noise currently in the market.

USD/CAD Technical Analysis: May 25, 2017

The greenbacks rebounded around amid Wednesday’s trades, staying on top of the 1.35 region very often. However, the Bank of Canada, later on, stated that the recent plight in the inflation was merely an anomaly by which people should not be privy to. With this, the favor of the market is leaned towards the Canadian dollar as the oil industry had received a fair support.

A break under the level 1.36 will extend the strength of the selling pressure because of the oil prices. The oil market appeared to be volatile on the back of the OPEC announcement expected to be released later. When the announcement regarding the production cuts appeared to be longer and deeper than of the anticipated result, it will surge the oil price up resulting the pair to move lower.

Selling rallies will continue considering that the market formed renewed lows in the day, however, the oil sector presumably will ascend. When the organization did not meet the expectations of bullish oil traders, the market will reverse suddenly. This will further make the USDCAD an interesting pair for the next sessions while high volume will be seen jumping in and out from the oil pits.

Trading recommendations say that the 1.33 handle and 1.30 level below is supportive. In the longer-term, the oil will be facing major issues and will run to the upside of the market in the short-term. This will cause for the North American shale producers to came in.

USD/CAD Fundamental Analysis: May 25, 2017

The USD/CAD pair crashed past 1.3500 points during yesterday’s session, signalling a complete turnaround of the pair’s price action. The loonie has also somewhat managed to test the 1.3500 range, although its progress was remarkably slow and has cast doubt on the pair’s ability to reach its medium-term target of 1.4000 points.

The pair’s targets were mostly based on the recent drop in oil prices, as well as the current problems and uncertainties surrounding the Canadian economy, and a possible rate cut in Canada anytime soon. But the Canadian government seems to have already reined in its economic concerns, and this can be seen in the sound improvement of Canadian economic data during the past weeks. The USD/CAD pair has also moved down from 1.3800 points to 1.3500 points as the Canadian dollar received significant support from a surge in oil prices during the previous weeks. The Bank of Canada has decided yesterday to maintain its current rates which painted a rosy picture of the Canadian economy and enabled the USD/CAD pair to correct towards 1.3500 points before finally deciding to settle at 1.3400 points.

For today’s trading session, the market will be monitoring the OPEC meetings scheduled within the day which is expected to affect the course of action of the USD/CAD pair. However, since the pair has now surpassed 1.3500 points, this particular range could possibly serve as the pair’s resistance level against any other attempts to reach its range highs.

USD/JPY Technical Analysis: May 25, 2017

The U.S. dollar against the Japanese yen had a calm trading session on Wednesday. The 112 level is being resistive up to 112.50 above. It may be best to wait until the price breaks in the upper region but most likely it will decline in the short-term. There is a support close to the 111.50 level and anticipate volatility in the market. There is a lot of buyers down below but with chances to break out. It will be more advantageous to trade this pair in short-term as it open more opportunities in either direction.

Short-term trades may drop from the current psychological level but there is a massive support down below that makes it appealing for long-term traders. The market will be observant with the reports coming out with all the political problems globally.

Since the stock market is moving upwards, the pair could go higher with the “risk on” sentiment in the market and the Japanese yen sell-off is a positive indicator,

Look for smaller trade positions as these open opportunities but will have chances to lose some money. In the long-term, the pair will continue to move upward but be ready for volatility. Also, it is important to consider the time frame in positioning orders.