Daily Market Analysis by ForexMart

EUR/USD Technical Analysis: May 26, 2017

The EURUSD trade in the sideways trying to proceed near the resistance region at 1.1265 mark, however, failed to take its position and plunged amid North American trading hours.

The jobless claims showed tight data during its Thursday’s release and were offset through a dovish tone indicated from the minutes of FOMC meeting issued on Wednesday by the Fed.

The predictions failed to some extent which triggered the Fed to make its final decision on Friday while Fed funds continued to have a strong expectation that the bank will take action.

The pair keeps forming a bull flag pattern which acts a pause to refresh. The price consolidated under the resistance level at 1.1299 near its November 8 highs.

The support approached 1.1132 area close to the 10-day moving average. The momentum appeared to be neutral while the MACD histogram moved downwards indicating a down sloping positive momentum. The RSI further trailed lower from the overbought territory as it prints 67 reading. This is the upper end of the neutral range which suggests for a consolidation.

GBP/USD Technical Analysis: May 26, 2017

The British currency ride out a volatile session amid Thursday trades, reaching the top of the 1.30 region in the day and rolled downwards substantially. Further support can be found in the uptrend line which reflects for another round of rally.

The market could likely offer buying opportunities for the GBP/USD, however, the actual signal intended for the long-term trading suggests a move over the mark 1.3050. This implies that the trend will continue until the 1.3450 area that would be the top of the former consolidation region towards the weekly charts in the long-term.

Buying the dips could possibly remain to exist along the way while the trading position shall maintain as small as possible. Since the market will continue to be highly volatile due to remarks from the UK and EU people privy to the British exit.

As things go because of volatility, dealing with the market will going to be delicate and it is important to sustain a small position. This way could be the best idea to go up against any types of risks we may face.

It is recommended to cut in half anything you feel you are comfortable with, so you can employ twice the stop loss. This could help you to stay in a market where uncertainties are extraordinary, however, it appears that buyers in the longer-term will extend its involvement with the Cable as the sterling became oversold at some point.

As the volatility continues, we should initiate to build up higher highs once more including a long position as well. Selling still not an option as we deemed that the absolute floor can be found at 1.2750.

AUD/USD Technical Analysis: May 26, 2017

The Australian currency endured an extreme volatility amid session on Thursdays, making a gapped through the top of 0.75 handle and fell lower. In the past few days appeared to interesting due to the weakening of the ascending momentum. With this, the risk of the decline is within reach and in case that the gold markets are able to keep the support around $1250 level will accelerate the downtrend.

The market currently following an uptrend line which positioned under the actual pricing. The market broke underneath the ascending line which could be one of the reasons to extend the decline. When this happens, the level below 0.74 is expected to set off a positive target for many traders.

Moreover, the commodity market should be taken into consideration when it comes to Aussie, this includes the copper and gold. The previous volatility of the AUD makes it difficult to hover within this position, it requires a break on top of the current highs or a significant breakdown in order to set actual money to work.

The choppiness is also extended since traders dominate the overall place with regards to the projections on the interest rate in the United States while Asian appeal for base metals from Australia.

A breakdown underneath the 0.7440 range will confirm for a roll over which signaled for a lower pricing, nevertheless, the noise remains that causes the market to be a tough one to engage with.

USD/CAD Technical Analysis: May 26, 2017

The U.S. dollar against the Canadian dollar declined in the beginning of Thursday trading session. The OPEC announcement has been released saying the production cute has been extended for another nine months. Although this is already expected, the downtrend occurs because of the possibility for a sell-off in the oil market as reflected in the hourly chart.

A break higher than the 1.35 region would induce this pair to move higher reaching up to 1.36 handle. Yet, if an exhaustive candle is formed, the market would proceed to a sell-off. The next few sessions are relevant to determine what happens in the future o f this pair.

The OPEC was not as aggressive as expected but the production cut decision is in line with the market’s expectation. Long-term traders would see a buying opportunity to the current condition of the oil market. However, it is safer to wait for a longer rally for the day before doing so, Overall, the market is moving uptrend for long-term which has had a rough trading last week.

It may be best to wait on the sidelines for the next 1 to days before trading this pair. The Moving Averages were not doing well but there is a chance for loonies to soften in the long-term. The 1.36 level is a significant psychological level for long-term to put on hold long-term orders and traders should wait until the current trend has been settled before placing orders.

GBP/JPY Technical Analysis: May 26, 2017

The British pound and Japanese yen pair had a volatile trading during the Tuesday session. It broke higher in the beginning but stopped at 145.50 resistance level followed by a decline as it reached the lowest level for the day before stopping by another level.

The market is having a difficult time trading even scalping for 2 pips and it’s nearly impossible to hold onto trade for an indefinite period of time until a new psychological level has been reached. There is a significant barrier seen at 145.50 region so a break higher than the said level would bring optimism for the pair.

In the past few week, the market is trying to reach new highs. A new breakout is needed to lay off the bullish pressure but for now, it is uncertain on what this pair would bring to the table. Hence, traders should be cautious with their next move.

For the long term, there is a bearish pressure, especially for weekly and monthly traders. Recently, the yen related pairs rallies which could affect the overall trend but it is really poor at the beginning as usual but this would switch later on to the upside when traders gain enough momentum.

This pair is anticipated to be choppy and lingers in consolidation between the 144.50 and 145.50 region in the upper side. Short-term trades will be preferred and drive the whole trend. Hence, it is advisable to place orders in smaller positions until a significant break has been achieved when the market activity becomes volatile because of several factors, mainly for geopolitical reasons.

EUR/USD Fundamental Analysis: May 29, 2017

The EUR/USD pair closed down last week’s trading session within its range lows as the USD was able to regain its strength after dropping in value during the previous week. The greenback had previously lost its strength after Trump-related political woes bogged down the value of the currency, in addition to speculations that Trump’s various misdemeanors could possibly affect the expected rate hike next month. Luckily, the dollar was able to gain some momentum after the market sentiment regarding a June rate hike went from negative to positive.

The dollar was further propped up by the results of the FOMC minutes, although the minutes lacked enough hawkishness to satisfy the markets. However this was enough for the market to price in a rate hike next month, in addition to some Fed officials stating that they would like to see a June rate hike. This was enough for the dollar to increase in value against the euro, although the EUR/USD pair’s current range is currently the pair’s lowest range within the year. But the currency pair remains trading within a very strong and steady range, which is probably one of the reasons why the USD has not progressed that much against the euro. Merkel also remarked last week that she is currently worried about the euro’s marked weakness, and as such, this has helped to prop up the euro further in addition to a steady stream of positive economic data from the EU economy during the previous week. So although the currency pair closed down on a much lower note, the pair remains in a very limited range and this is why the euro could still possibly be able to withstand USD pressure within the near future.

For this week, the market will be bracing itself for the release of the first half of month-end flows as this week will start the beginning of a new month. The second half of the week will be packed with economic releases such as the NFP reports on Friday. The market will be in for some additional volatility, and traders are advised to remain within significant buying areas should they wish to trade EUR/USD longs.

GBP/USD Fundamental Analysis: May 29, 2017

The sterling pound remains to be the weakest in a sea of major currency pairs during the past week after the GBP/USD pair failed yet again to break through the very crucial region of 1.3030 in spite of several attempts to do so. The currency pair remains on the backfoot and has been unable to make any significant progress in spite of a string of very positive economic data from the UK economy during these past few months.

There were no significant economic readings from the UK economy last week and this helped in steadying the value of the sterling pound, although the GBP/USD pair remained under pressure due to the strength of the greenback, which only accelerated throughout the course of last week as the market attempted to re-price the June rate hike from the Fed. The FOMC then tried to augment this positivity by stating that the rate hike was still in the table as far as the Fed is concerned, provided that the US economy continues to throw up some good readings for the market. This was more than enough for market traders, who immediately delved into dollar longs as preparation for a possible interest rate hike in spite of the fact that this will be dependent on the results of the month-end flows for the US economy. The GBP/USD pair remained under constant pressure last week, and its attempts to go past 1.3030 were all immediately met by large-scale selloffs. The currency pair eventually dropped down to 1.2900 and even 1.2800 points before finally settling at just over 1.2800 points.

For this week, the market will be bracing itself for the month-end flows as we enter a new month. This could potentially affect the value of the GBP/USD pair and could even be subject to additional pressure once the UK and the US economy releases a series of essential economic data such as the NFP report and the PMI data. The pair is expected to continue to be under pressure during the first half, while the pair’s value on the second half would most likely depend on the value of the US dollar.

USD/JPY Technical Analysis: May 29, 2017

The U.S. dollar against the Japanese yen declined during the Friday session. It reached the lowest level of 110.80. If it bounced back, this will signal a bullish trend but this would not be easy to attain as there is high-risk appetite especially for this pair. The 110 level gives off a massive support but is the pair breaks lower, the next level would be at 108 region at a quicker pace because there is a still remaining gap that has not been filled.

In the long-term, this pair will most likely go higher although it may take some time since the 112.50 is strongly resistive. A break higher than this region would be beneficial for scalpers to take advantage of bulls interested in the U.S. dollar.

Traders of this pair should monitor the S&P 500 index as this would have a big influence to the pair. If the index rises, this pair follows. Moreover, the chances for a Fed rate hike puts a bullish pressure for the pair. If it did not take place, it might be a problem for the pair although it is most likely that this would happen with its stature at stake.

Pullbacks every now and then offer long-term opportunities but for short-term, this gives off bearish volatility/ This could persist for some time especially with the major events concerning geopolitical problems occurring from Europe and the U.S.

Overall, the pair moves in an uptrend from 110.23 level and a decline from 112.13 will indicate a correction. It is expected to rise again following the correction towards the 113.50 level. The near-term resistance is found at 111.70 and a break to this level would mean a continuation of the uptrend. On the other hand, the support region is positioned at 110.80 and 110.23 and a break from these levels would push the price back again from 114.36 level.

EUR/USD Fundamental Analysis: May 30, 2017


It was a market holiday on several parts of the world yesterday, and the absence of market volatility due to the said holidays was felt throughout the market during the previous session as most of the major currency pairs consolidated and traded within a very limited range yesterday. EUR/USD traders had only one thing to look forward to during the duration of yesterday’s session, which is Draghi’s speech wherein he made his usual statements on the lessening of downward pressure on the EU economy, although this had little effect on the EUR/USD pair’s current standing.


What affected the value of the currency pair was the news that Greece is now prepared to abdicate the following bailout fund if the EU will still be unable to reach middle ground as far as the conditions were concerned. This then caused the EUR/USD pair to correct towards 1.1120 points during the latter part of yesterday’s session. As of the moment, the market is still experiencing very low liquidity levels as the Chinese market remains to be on a holiday, and as such, traders are advised to take all market movements today with a grain of salt. In addition, the market will also be experiencing month-end flows before this week comes to a close, and this is why traders should take it easy in order to prepare themselves for the onslaught of economic data later this week. The Fed rate hike in June is still not fully priced in, and unless the market gets some sort of conclusion with regards to the Fed’s next move, then it will be very hard to determine the short-term price actions of the EUR/USD pair. But the recent correction of the EUR/USD pair should be taken only as a mere correction instead of a full-on trend change as corrections are deemed as normal in every currency pair.


For today’s session, the market is expecting the release of Germany’s Preliminary CPI data, as well as the PCE data from the US economy. The PCE data will be closely watched as this will indicate whether the Fed will be indeed pushing through with its rate hike or otherwise and could possibly induce a lot of volatility into the market within the day.

GBP/USD Fundamental Analysis: May 30, 2017

In a sea of otherwise very inactive major currency pairs, the GBP/USD pair seems to be the only pair which has gained significant volatility during yesterday’s trading session. The cable pair shot up by over 40 pips in spite of a market holiday across several locations throughout the world such as the US, UK, and China. The lack of market activity yesterday gave the pair’s traders an opportunity to induce a bounce in the pair although it was unable to offset the 150-pip crash of the cable pair during the session last Friday. In spite of this recent reversal, the GBP/USD pair is expected to remain trading in a very weak manner as a lot of economic factors seem to be going against the sterling pound at least for the time being.

Members of the ruling political party in Scotland have recently outlined the possibility of a Scottish referendum if ever they get reinstated in the Scottish government. But then again there have been recent rumors swirling around with regards to the ongoing Brexit negotiations, specifically on how the negotiations will pan out once the snap elections in June come to a close. In addition, the results of the recent opinion polls are showing that Theresa May lacked the expected lead in the upcoming snap elections, which puts May in danger since anything less than a landslide victory for the UK PM will make this particular risk of hers in order to establish herself in the international scene a failure. The GBP/USD pair is also currently struggling to surpass 1.3030 points, and all of these factors have turned against the cable pair and has put a significant amount of downward pressure on the pair.

For today’s session, there are no expected releases from the UK economy although the US will be releasing its PCE data, which will be closely monitored by the market as this will be indicating whether the June rate hike will indeed push through or otherwise. If this data disappoints the market, then this will not bade well for the GBP/USD pair.

EUR/USD Technical Analysis: May 30, 2017

The pair was influenced by the possible adjustments in the forward policy that will be implemented come second week of June. The ECB council is pressured prior to the June 8 council assembly following the slow changes seems to be not happening.

The Draghi and Praet both responded in the previous week saying the inflation is still on line towards a viable path towards the desired figure. On Tuesday, rounded off confidence data by the ESI sentiment indicator for the month of May warrants the recovery of the currency. Although, preliminary inflation for May is anticipated to decline.

The Euro against the U.S. dollar had an inactive Monday session because of holidays in the U.S., China and the U.K. On the other hand, equities are plunge as Italian shares declined by 2 percent including bank shares that fell more than 3.0 percent. This has been the highest drop over the past three months. Moreover, the bond market in Italy dropped fastidiously while the 10-year yield rose close to nine basis points that adds pressure to go down in Euro if the core prices fell.

The Resistance level positioned at 1.1265 which is its high previously while the support level is noticed close to the 10-day Moving Average at 1.1178 region. A doji pattern is noticeable in the trend that would mean indecision of the market. The price trend could further go down towards the next target of 1.1050 mark. If this level is sustained, the decline from 1.1267 indicated consolidation for long-term and rise again following the downtrend towards 1.1450 after the consolidation. The MACD index prints are seen close to the zero level implying a neutral stance while the MACD histogram shows a flat course that hints consolidation of the pair.

EUR/GBP Technical Analysis: May 30, 2017

The Euro against the British pound declined during the Monday session. The pullbacks happened as the British pound stabilizes. If the price breaks down lower than the 0.87 handle which has a higher chance to happen, the next level would be at 0.8650. However, if the price breaks higher than the 0.8750 region implying that the downtrend has been disturbed and will move upward instead.

There is high choppiness in the market despite the fact that the recuperation of the British pound. This could result in a sell-off for long-term and it seems that the volatility will persist. Hence, short-term swaying may be the end result.

Quite often, you can decide which way to go in this market based upon how they are behaving against the US dollar. For example, if one is stronger than the other against the US dollar, then that’s the direction you want to trade in this pair. It’s something that I call “triangulation”, as you can glean what’s going to happen in the EUR/GBP pair by paying attention to what happens in the EUR/USD pair, and of course the GBP/USD pair.

Most of the time, the next move in the market can be determined when compared with the U.S. dollar and give an idea which one will be better or not. This could also be applied to the EUR/GBP pair by analyzing the direction of the EUR/USD pair and the GBP/USD pair. Gauging their resilience and fragility in the market will help traders decision in trading depending on your preferred route to choose.

GBP/USD Technical Analysis: May 30, 2017

The British currency was able to gain strength amid Monday session after the stabilization in past few weeks. While the selloff was severe, nonetheless, we’re able to reach the region 1.2750 below. The mentioned level deemed as massive resistance previously based on the long-term chart.

As the sterling could maintain its overall stability, the market could possibly edged upwards. Upon breaking down the 1.2750 handle, buying in the dips appeared to offer a bigger and longer term buying opportunity. The selloff was drastic because of the political polls which is always wrong throughout the year. The market has to sustain its volatility, however, it will highly prefer the upside.

In the long-term, the GBPUSD will be bullish but there is a likelihood that the market has plenty of noise to deal with.

A break on top of the 1.29 handle will trigger the market to initiate a bullish pressure as it was able to lure the attention of some traders.

Meanwhile, buying the dips is possible and could be better if done in a short-term outlook, at the same time, employing small time frames and positions to complete this bias.

A cut through beneath the mark 1.2750 will break down which definitely change the general perspective.

USD/CAD Fundamental Analysis: May 30, 2017

The USD/CAD pair remained in consolidation mode as the market lacked significant volatility due to market holidays in China, US, and the UK. The loonie remains trading under the very important trading range of 1.3500 points, mostly due to a steadying in oil prices in addition to a strong greenback value.

The currency pair broke through 1.3500 points last week after a surge in oil prices. Although the oil bulls were very disappointed with regards to the results of the recently-concluded OPEC meeting, the loonie received some well-needed pressure from this drop in oil prices, thereby triggering the USD/CAD pair to revert to 1.3500 points and closed down last week at just under this critical trading level. The CAD is also currently being propped up by a series of very positive data from the Canadian economy, with this economic improvement getting some acknowledgement from the Bank of Canada in its rate statement during the past week. In fact, the BoC has already decided to put its rates on hold instead of implementing a rate cut due to this consistent improvement in the country’s economic state, which could then lead to a possible rate hike if the country’s economy continues to be positive.

For today’s session, the US economy will be releasing its PCE data which is expected to clarify the country’s inflation status in addition to shedding some light on whether the Fed will be indeed implementing a rate hike next month. If the PCE comes out as negative, then the USD/CAD pair could possibly correct further towards 1.3400 points.

AUD/USD Technical Analysis: May 30, 2017

The Australian dollar against the U.S. dollar broker lower amid a choppy conditioned during the Monday session. It fluctuated back then and bounced off as it found the 0.7450 level resistive. Then, it declined towards the 0.7425 region and bounced again. For the past trading session, the market is moving in a downward direction and it won’t take long before the pair breaks below the 0.70 region in the lower channel. If the pair breaks higher than the 0.7450 level, the market will head towards the 0.75 handle.

Also, the gold market has a direct impact to the pair which will be influenced by the movement of the commodity market most especially, since there are several factors that could trigger a move in the gold market.

A surge in the gold market surged based on the appetite risk will be beneficial for the currency. However, if a safety trade is the driver of the surge in the gold market such as the increased concern regarding North Korea inducing fear in the International market and people may go to the Aussie since it is a “risky currency”.

The surge in gold is most likely because of the search for safe-haven asset instead of economic growth purposes. This puts the Australian dollar in a difficult situation although it won’t take that long for another breakdown as said before.

When it breaks down, the price trend could further go down although there will be choppiness with it as how it is for this pair for a while. Overall, the greenback is moving in a better side compared to the Aussie betting forward in short-term.

USD/CAD Technical Analysis: May 30, 2017

The USD/CAD appeared to be negative throughout Monday session, however, it starts to search for another leg close to 1.3425 handle.

The market is in the downtrend at some point, which is highly influenced by the oil markets.

The trading yesterday was very thin as the oil sector surge which established a bearish pressure towards the USDCAD. It will be a challenge when the full volume returned to the marketplace which could absolutely persuade the market eventually.

Ability to break on top of 1.35 handle requires the market to continue moving higher. Otherwise, a renewed lows would significantly cause a breakdown and maybe, it could touch 1.33 handle. However, the route could be really choppy which obliged the participants to be cautious.

Previously, a downtrend is prominent despite the noise around the crude oil markets, this could lead to a sudden shift.

In case that the oil industry breaks on top of $50.50 level based on the WTI grade, the market will initiate a significant collapse. Contrarily, a cut through beneath $50 level could possibly prompt the pair to rally towards the upside giving an opportunity to resume a longer-term uptrend which is common and important in the past few weeks.

The next moves are highly anticipated and there are predictions that it could be best to take a pause on the sidelines, waiting for a correlating move from both markets prior investing a large amount to work.

EUR/USD Technical Analysis: May 31, 2017

The EURUSD bounced back from its session lows against the lower than expected result in Germany’s inflation rate along with the weakening of EMU sentiment. Meanwhile, the GDP statistics of France was corrected higher, Spain’s inflation and Swiss KOF index came in softer

The diverging opinions about the exit strategy of the European Central Bank remain to go through jawboning prior the bank’s meeting scheduled the following week.

Moreover, the pair bounced off in spite hitting its renewed lows, however, failed to regain the resistance at 1.1182 level around the 10-day moving average. The support touched 1.10 region close to its April highs.

The bull flag dwindled seeing the momentum to shift in the negative. The moving average convergence divergence established a crossover signal to sell. This event was triggered due to the spread that crosses underneath the 9-day EMA. The MACD histogram move ahead the negative zone prior the positive territory, therefore, indicating a sell signal.

GBP/USD Technical Analysis: May 31, 2017

The British currency had broken out in the upside amid Tuesday’s session following an initial move lower. A break above pushes through a higher high with the possibility that the market will trail near 1.29 handle. The mentioned level certainly holds an amount of psychological significance and a cut through on top of its would generate a bullish signal.

The region below 1.2750 had a significant floor which appeared to be a massive resistance previously. With this, the buyers would likely return each time a dip was made and the pound has been further oversold because of the vote casting.

While the conservatives have greater chance to win again over the election, hence, risks should peter out taking into account to where the United Kingdom will go next.

Moreover, it still an advantage to buy dips within this market. It could touch the region 1.3050 again while offering good trading opportunities for longer-term position in the past sessions. An ability to break on top of that area would mean the market will move ahead near 1.3450 mark. It should be given enough time to reset the level and there is a tendency that market players will look this pull back as valuable and beneficial.

EUR/USD Fundamental Analysis: May 31, 2017

The EUR/USD pair started off yesterday’s trading session on a somewhat subdued note as UK and US traders returned to their desks after the long weekend, with market liquidity levels reverting back to normal during the latter part of the previous session. The currency pair had decreased in value last Monday following concerns regarding Greece’s bailout, as well as Draghi’s statement wherein he remains as dovish as ever.

But the EUR/USD pair continues to fare for the better as the PCE data came in on a very disappointing note during the second half of the previous session. As the PCE data is a very important gauge of US inflation rates and will serve as the Fed’s basis for its subsequent rate hikes, the greenback suffered a correction, enabling the EUR/USD pair to take advantage of the dollar weakness and surge from its lows of 1.1110 points to reach the 1.1200 trading range. US bond yields also failed to meet investor expectations, and as the stock market closed down yesterday within its range lows, this caused the dollar to receive a serious beating which then caused the EUR/USD pair to further increase in value. The currency pair experienced some minor corrections during the duration of its price action yesterday but is now resting over 1.1150 points and looks poised for more upward movement.

For today’s trading session, as today marks the end of this month, there are a lot of expected month-end flows although there are only a few economic data scheduled for today. The market is expected to add up its volatility as some Fed officials will be making statements today, with the EUR/USD pair possibly exhibiting a strong price action for the rest of the week.

GBP/USD Fundamental Analysis: May 31, 2017

The GBP/USD pair exhibited a very intermittent price action during the previous session as it was extremely volatile during the previous 24 hours. The cable pair further surged in value during the European session and the first few hours of the NY session as the market volatility returned to its normal levels following a low liquidity volume last Monday. The US PCE data which was released yesterday also came out to be somewhat disappointing for the market as the data showed a lack of bite in US inflation rates, causing the greenback to drop in value and enabled the GBP/USD pair to advance towards 1.2880 points.

The June snap elections in the UK is recently serving as a determinant for the price action of the cable pair, and since there have been a lot of discussions going on including the possibility of the UK’s ruling party losing the snap elections, the GBP/USD pair did not take this particular piece of news lightly and fell below 1.2800 points almost immediately after the said update. Theresa May had initially called for the snap elections as a means for her to establish herself further while creating a more solid majority for herself, and such, anything less than a landslide victory for may would cause a massive pound selloff as the market becomes jittery just before the elections commence.

For today’s session, there are no major releases from the UK economy, although a lot of month-end flows are expected within the day which are all expected to put downward pressure on the cable pair.

USD/CAD Technical Analysis: May 31, 2017

The U.S. dollar against the Canadian dollar climbed during early Tuesday trading session and ended until it reached the 1.35 level that is strongly resistive. Yet, it opens potential trade to the market. If the market is able to close higher than the 1.35 level, it gives off an important psychological level and much better to break above the 1.3550 region. Hence, this opens an opportunity to place long orders.

On the other hand, if the pair reverses instead, the currency will keep on gaining leverage most especially if the oil market rallies. Currently, the oil market is in significant levels. It persists to have high volatility but a break more than the 1.3550 level exceeding the current highs will appeal to more traders.

There are concerns that the oil market is declining again, in effect this will push the price of the pair to move higher. Although, as of now, this is just secondary to the crude oil market that traders should give attention to. A break higher than the 1.3575 region signals uptrend of the pair.

Overall, there will be high volatility in the market regardless of what happens next since there is a lot of noise in the oil market because of the reduced production output in the U.S. and Canada. Hence, traders should anticipate this until the commodity market stabilizes. Moreover, the Canadian housing is also gaining pressure in the market.

USD/JPY Technical Analysis: May 31, 2017

The U.S. dollar traded against the Japanese yen declined during Tuesday session. The 110.80 is being tested and it seems that the trend will further go down towards the 110 handle. This makes this region important and it will make take too long when buyers return again in the market.

The pair is highly sensitive to the risk appetite and a higher stock market as well as the commodity market would push this market to move higher. If the pair breaks to fresh new highs even above the 111.50 region, it opens the possibility to move towards the 112 level and a break even higher will most likely hover to 115 handle next.

There is a general “risk off” for this pair that would push the price lower towards the 110 region surpassing the 108 region. Yet, there are low chances for buyers to return to the market as the U.S. stock market rallies. This has a significant effect in International market and this includes the pair.

Timing would become an obstacle for traders that makes smaller trades as ideal positions in the market especially if the trader is aiming for a long-term bet. It is seen to be struggling against the short-term downtrend for the past few days. Overall, there is a bullish pressure seen below for long-term trades.

GBP/JPY Technical Analysis: May 31, 2017

The national currency of Britain weakened amid Tuesday trading, however, it had a significant rebound from the area 141.80 reaching the 143 handle. A break over the daily highs would direct the market in a higher position, as it may reach 144 level without plenty of issues.

Generally, the Sterling holds a significant amount of reversal throughout the day since the Cable further exhibited active signs. This could probably be a correction for the oversold condition where the GBP sees itself, after the election polling it became tighter exceeding its expectations in the past. Moreover, the figures decreased inclined with the conservative administration. Having said that, the uptrend will resume eventually, hence buying is highly preferred on the gap above the highest.

Remember that the pairs relative to Japanese yen appeared to very sensitive to risk. This could be considered as one of the most delicate pairs, the simultaneous rally of the stock market is a big help that could move 100 pips in an instant.

Either way, a cut through underneath 142.50 region would allow the market to touch 142 handle once again.

The daily candle begins to display a bullish stance which signals that buyers will return, nevertheless, it could be best that you’ll wait for the market to reveal hints to initiate the buying, as a means to safeguard your account against an extensive volatility.

USD/CAD Fundamental Analysis: May 31, 2017

The USD/CAD pair’s price action is currently dependent on the state of the economic data coming from the US and the Canadian economy within the day, with the market monitoring whether the currency pair will be able to turnaround from its presently very weak trading action.

The loonie was also unable to make any significant progress yesterday as it merely consolidated throughout the course of the previous session. Oil prices were also able to stay afloat, and this has reflected on the activity of the USD/CAD pair. The greenback experienced a slight weakness during the latter part of yesterday’s session but was unable to make any significant impact on the movement of the USD/CAD pair. The loonie is currently trading at just over the 1.3450 trading range. As we enter the second half of this week, the market is now bracing itself for the onslaught of economic data coming from Canada and the US, which are all expected to induce additional volatility into the market. The Canadian economic data has been consistently able to exceed initial market expectations, and this has helped the loonie to remain ahead of other major currencies and is one of the reasons why the USD/CAD pair is now in a very weak state.

For today’s session, the Canadian economy will be releasing its GDP data, and since the Bank of Canada has very positive sentiments with regards to the current economic state of the country, these incoming economic data will either make or break the central bank’s current sentiment. The GDP data is only one among several economic releases within the week, and the market should prepare itself for an expected volatility surge.

EUR/USD Fundamental Analysis: June 1, 2017

The EUR/USD pair looks poised to make another attempt at reaching its current range highs as the currency pair was able to take advantage of a correction in the greenback. This upward pressure in the currency pair is expected to last well into the first few days of June, particularly the 2 most essential trading days for this month.

The dollar experienced corrections on the back of a couple of disappointing data from the US economy. The first one was the Chicago PMI data, which failed to meet its expected economic reading and the pending home sales data, which also disappointed the entirety of the market yesterday. This triggered a large-scale dollar selloff against other major currencies and has enabled the EUR/USD pair to advance towards 1.1200 and was even able to reach 1.1250 points throughout the course of the NY session. Since the Fed had previously clarified that the implementation of the June rate hike will be wholly dependent on the results of the incoming economic readings from the US, the market has become very sensitive to readings coming from the US economy, with even minor readings inducing major volatility levels on the market especially if these comes out as very disappointing for investors. Eventually, the PMI data was revised to a much higher reading and this helped to cushion the blow of the fall of the USD, although this has left an impression on the market with regards to the adverse effects of a negative reading to the value of the US dollar. Meanwhile, the USD continues to be in peril in spite of its drop in value being temporarily stalled.

For today’s trading session, there are no major news releases coming from the EU economy while the US will be releasing its unemployment claims data and its ADP Non-Farm Employment change data during the NY session, which is a precedent to the release of the NFP report on Friday. This particular bit of news is then expected to induce major volatility levels and a move of the currency pair below 1.1200 points should be a signal for the pair’s bulls to rethink their positions.