Daily Market Analysis from ForexMart

[Andrea ForexMart]

EUR/USD Fundamental Analysis: June 14, 2017

 

The EUR/USD pair merely continued its tight trading action during yesterday’s session as the market braces itself for the announcement coming from the FOMC scheduled for today. The currency pair had initially attempted to move towards the bottom if its range but was immediately met with some large-scale buys in the 1.1160-1.1180 range, prompting the currency pair to revert to its original range.

 

During the previous session, the most important region for the pair’s bulls and bears was the 1.1200 trading range, with the currency pair managing to close down yesterday’s session at just over this particular range. However, this would all be futile if ever the Fed decides to implement another interest rate hike and release a very hawkish statement. As of the moment, the market has priced in a 90% possibility of rate hike, with the Fed neither confirming nor denying rumors of a possible interest rate hike. The market has taken this as a positive signal from the Fed as far as the rate hike is concerned, and this is one of the reasons why the EUR/USD pair is now trading within its range lows paired with somewhat tame bounces in between as the USD continues to hold on to its current value. Now that the rate hike is already priced in, the market will now be shifting its focus towards the FOMC statement, where the central bank is expected give clues with regards to the next rate hike. The next scheduled rate hike was initially scheduled to be implemented this coming September, however a series of negative data from the US economy has caused doubts on whether the central bank will be indeed pushing through with the next rate hike.

 

Aside from the FOMC rate announcement, the US economy will also be releasing its retail sales data and CPI data, both of which are expected to induce volatility levels into the EUR/USD pair. However, since the market will be focusing today on the rate announcement, a volatility surge is expected right after the release of the FOMC statement.

[Andrea ForexMart]

USD/CAD  Technical Analysis: June 15, 2017

 

The U.S. dollar against the Canadian dollar declined during the Wednesday session. It broke lower than the 1.32 level. However, there are still concerns in betting this pair considering the possibility of a rally because of the speculations to the Bank of Canada to tighten its rates or lessen its quantitative easing.

 

Generally, the market is focused on various factors. One is the oil market which has an impact on the Canadian dollar. There is a chance that the central bank would have a drastic change to the price trend to support the Loonie. Currently, there is uncertainty in the oil market that the investors should closely monitor besides other economic problems.

 

Furthermore, what the Federal Reserve is doing would have an effect to the trading market and just recently, there was a sell-off in the pair for the past few days which could unexpectedly turn into bullishness instead of bearishness. Three handles have already been lost indicating strong moves over the last three days. This makes other currencies to be traded easier. However, if the Federal Reserve made a surprising move to raise its interest rates for the second half of the year, the market will turn into chaos and surge to the upper channel along with the Japanese yen major pair against the greenback.

[Andrea ForexMart]

EUR/USD Fundamental Analysis: June 16, 2017

 

The EUR/USD pair exhibited a correction during the past 24 hours as the US dollar regained its strength following the recent Fed rate hike. This was pretty much expected for the EUR/USD pair once the London session commenced and were able to react on this recent development from  the US economy.

 

The market faced a slight disorientation halfway through yesterday’s NY session as the Fed mulled over whether it will still push through with its planned interest rate hike in spite of a series of disappointing economic data from the US. Luckily, the central bank decided to go ahead and push through with the said hike and even chose to shrug off the weak economic data as a mere one-off and instead kept its focus on future rate hikes as well as the overall economic health of the country. This gave off a bullish undertone to the market, and the market responded accordingly by triggering a massive dollar buying across all currencies. As a result, the EUR/USD pair sank through 1.1200 points and spent a short while at the 1.1160-1.1170 support range, and although the pair was met with some buying within this range, this buying lasted only for a brief period and the pair eventually dropped towards 1.1130 points before finally settling at just under 1.1150 points, where it continued to trade in a very weak manner, with its next short-term target located at 1.1100 points. There were some positive data coming in from the EU, while the IMF also stated that the EU economy seems to be consistently improving, but so far this has had no effect on  the EUR/USD pair.

 

For today’s trading session, there are no major releases from the eurozone while the US economy will be releasing its building permits data. The dollar is expected to remain trading in a consistently strong manner which could put additional pressure on the EUR/USD pair.

[Andrea ForexMart]

USD/JPY  Technical Analysis: June 19, 2017

 

The U.S. dollar against the Japanese yen climbed higher during the Friday session. There is a massive resistance found in the 11.40 level to reverse the trend followed by a decline. A neutral candle is formed for the day although the market is trying to gain momentum as they are trying to recover following the drastic move in the upside on Thursday.

 

The Federal Reserve is being hawkish more than expected which is favorable for the greenback since the Bank of Japan moves contradictorily when it comes to monetary policy. The 110 region remains supportive which would most likely become the floor of the market.

 

For now, it is advisable to short this pair to take advantage of its short-term decline and rendering more support for every short-term credit. This is still not finite and the trend could decline anytime although the next move would most likely be in the upside reflecting the impulsiveness of the market. Hence, buying is much more practical in the current market condition.

 

The initial next target would be at 112 then 112.50 level. For long-term, the trend could reach as high as 115 region although it might take longer to achieve this. There is also a tendency for the pair to be volatile which is not surprising. It is good to trade this pair in the current market as it could also benefit the greenback traded against the yen since the BOJ is dovish and most likely continue for a longer period of time.

[Andrea ForexMart]

AUD/USD Technical Analysis: June 21, 2017

 

The Australian currency attempted to initiate a rally amid the day and reversed to sell off. The 0.7575 mark was being tested due Aussie’s actions, hence, it provides a significant amount of support. In case that a breakdown occurred beyond that point, the market will be pushed down through 0.7550 region which is an interesting area in the past.

 

The market will keep on reaching the 0.765 handle when a bounce happen and when it break into the upside will drove near the region 0.7750.

 

At the end of the day, the market will continue following its risk appetite and traders should watch closely what will happen within that point. The central bank of New Zealand is expected to release a statement about interest rates scheduled today while the Aussie dollar will seek the same path.

 

Moreover, gold markets remain to be in a downbeat which can be felt by the AUD as well. With this, players should search for a support below prior the rebound. As the market still have challenging nature to deal with because of the many bits and pieces moving around, particularly the plan of the Fed Reserve to increase rates.

 

Above all, the pressure brought by the precious metal, gold paired with the general outlook on risk tolerance is projected to wrought a chaotic situation over the market.

 

In this event, it is complicated to determine where to go next as the consolidation is anticipated to keep going.

[Andrea ForexMart]

USD/CAD Fundamental Analysis: June 23, 2017

 

The USD/CAD pair has returned to its downtrodden price action as the Canadian economy released some very dismal data on the back of a steadily dropping oil prices. The currency pair was unable to surpass the very critical trading range of 1.3300-1.3330 points, thus stopping it from making any advancements towards 1.3500 and instead caused the currency pair to return to its downtrending price direction.

 

With the present state of the currency pair, it is now evident that the USD/CAD pair will be unable to make any decisive rebounds at least for the time being. The Canadian economy continues to throw some consistently good economic data, signaling that the country’s economic outlook remains on the positive. All this, including a highly positive retail sales data from the region could increase the chances of the Bank of Canada implementing an interest rate hike before the end of 2017. The central bank had previously hinted of this possibility a few weeks ago, and this further added to the downward pressure on the loonie. Oil prices have also managed to hold their ground in spite of its continuously weak outlook, with this oil prices the only thing stopping the USD/CAD pair to go full on with regards to completing its downturn. As of now, the USD/CAD pair is still continuing with its downtrend and if this further progresses, then the loonie will possibly reach 1.3100-1.3000 in the short term period.

 

For today’s trading session, the Canadian economy will be releasing its CPI data, and if this turns out to be positive as well, then this could enable the USD/CAD to drop further towards 1.3100 points.

[Andrea ForexMart]

EUR/USD Technical Analysis: June 27, 2017

 

The EURUSD is trading sideways during Monday’s session, however, met the resistance level at 1.12. A breakdown below that point and touched under the region 1.1175, then spotted a slightly bullish pressure. A cut through on top of the 1.12 handle and a pulled back from that point will see for another support.

 

With this, the pair is inclined to continue its ascending trend or maybe tried to touch the 1.13 mark in the longer term.

 

Volatility is still high in the market which would likely cause the single European currency to remain a market that is not easy to trade with, therefore, buying is our only choice.

The “fair value” is found at the 1.12 area and this point should be maintained. Buyers are starting to dominate the market, and there is no reason to stop moving near the 1.13 mark again.

 

It is possible that the market will continue to provide lots of buying opportunities on the dips in the short-term at least.

 

The market appeared to be crucial when imposing a sell signal unless we break the region under 1.1170. Ability to breakdown will lead the market towards 1.1125 handle.

 

A cut through over 1.13 mark, the market will drive going to the top of 1.15 range which is a strong barrier as indicated on the longer-term charts. As consolidation between the bottom of 1.05 and top of 1.15 continues in the past three years.

[Andrea ForexMart]

EUR/USD Fundamental Analysis: June 28, 2017

 

The EUR/USD was able to jump higher due to hawkish remarks of ECB head, Draghi coupled with the events happened in the United States that caused the greenbacks to weaken in general during Wednesday’s trading. The pair gained more than 160 pips in the past 24 hours and ultimately, the bullishness lasted in the past few weeks become apparent.

 

During the first part of the day, the pair had a usual day spending time under the 1.12 level consolidating. Followed by the statement of Draghi, who frequently not discuss monetary policy on his speeches, however, this happened yesterday that moved that market.

 

The European Central Bank is regarded to have a bearish stance but the strong data in the previous months that forced the bank to change their stand. Recently, M. Draghi mentioned his best indication regarding changes in track and stated that there is a likelihood that the central bank would start the tapering of QE very soon. This seems to be very hawkish for the European currency and the underlying strength aided the pair in pushing higher touching the 1.1250 level above.

 

A short interruption occurred prior the 1.13 area that acts like a wall in the past months and has the potential to stop the pair within that point and conduct another reversal. Nonetheless, there are reports about the delay in the US healthcare reform bill due to diverging ideas coming from the Republicans per se. This event caused the USD to lose its strength in general due to worries regarding the policy paralysis in the US that was triggered once again. It further leads the pair across the region 1.13 above and trading comfortably as of this writing.

 

Previous forecasts say that every last week of the each month will probably witness high volatility and this has been proven right.

 

We expect today for another statement from the head of ECB with an anticipation to talk about fiscal policy again and if he does not mention this or anything that contradicts his comments, the pair will remain to move upwards as it was far away from the 1.13 resistance.

[Andrea ForexMart]

AUD/USD Technical Analysis: June 29, 2017

 

The AUDUSD had rallied on Wednesday, however, found an adequate resistance around the 0.7625 handle to conduct a reversal and slide through the 0.7580 region.

 

Another rebound from that point will touch the 0.7650 eventually. The Australian currency has the potential to continue getting buyer’s attention and as of this writing, pullbacks are favorable for the possible value it contains.

 

The market is driving towards 0.7750 region which is very resistive and this is an area where attracted much attention on longer-term charts. Having said that, a slice on top of that level will appear to be bullish sending the market near 0.80 handle, which is an attractive area over a long period since both weekly and monthly trading charts had mentioned that 0.0 level is significant.

 

Moreover, the risk appetite could weigh against the Australian currency for it was able to gain strength when market participants are optimistic to commodities together with global improvement in general.

 

On the other hand, the U.S. dollars is certainly a safe currency that tends to take up value and volume even if the market manifest quite scary trends.

 

At the end of the day, the gold further placed pressure to Aussie and when the rally starts, the AUD will then obtain some support.

 

It is recommended to look for explosive moves both in metal markets and AUD. The volatile market would remain but the short-term dips will also provide a beneficial value while establishing a larger position. Taking part with binary options is one of the better way to go.

[Andrea ForexMart]

EUR/USD Technical Analysis: June 30, 2017

 

The currency pair EUR/USD had broken out and expected to resume its upward movement while inflation data appeared to be stronger than anticipated that lead the European yields higher.

 

The yield differential currently moves to the side of EU yields that paved the way for the single European currency to gain higher.

 

Confidence further surges on its renewed decade highs while consumer lending also increased. Most of the headlines from the United States came in better than expected, however, American yields are following its EU counterparts that put pressure to USD.

 

The pair broke out through its fresh 1-year peaks over the resistance at 1.1365 around highs of August 2016 while trying to test 1.1616 level near May 2016 peaks.

 

The support reached 1.1365 mark which is a previous resistance, followed by the 10-day moving average seen at 1.1148 region.

 

The pair’s momentum became positive when the moving average convergence divergence (MACD) produced a crossover buy signal. It was generated due to spread that crosses on top of the 9-day moving average. The histogram shifted from negative to positive zone and confirmed a buy signal. The index prints in the black with an ascending trajectory indicating a higher exchange rate.

[Andrea ForexMart]

NZD/USD Technical Analysis: June 30, 2017

 

The New Zealand currency experienced a volatile session during Wednesday's trading reaching the downtrend line shown in the weekly timeframe, and eventually, break down.

 

A position under the 0.73 handle indicates a slightly bearish tone, but, the longer-term market attempts to establish an adequate pressure to accomplish a breakout.

 

The downtrend line is important as the commodity markets do not offer any help towards the NZD. Having said that, performing a breakout might be difficult however when doing so, it should be massive as it touches the level 0.75 in short order.

 

Alternatively, it is also possible to breakdown but it requires a gap under the 0.7250 region to be conference since that area is considered to be a “lower low”

 

The NZDUSD pair endured an extreme volatility in the last few sessions suggests the previous situation within the Forex market in general.

 

The Kiwi dollar is known to be the least liquid among major pair that’s why we normally see lots of noise.

 

The current level of 0.73 is basically a “fair value” for the pair, hence, short-term traders would likely resume moving from side to side around that territory.

 

In the longer-term, a confirmation in order to complete the breakout is necessary even for bullish traders, as a means to put money to play within a really choppy market.

 

In case that, agricultural futures gained higher value this would mean that the NZ dollar will receive some support. But it appeared that traders’ attention is focused on the current situation of the interest rate.

 

[Andrea ForexMart]

USD/JPY Technical Analysis: July 03, 2017

 

The U.S. dollar against the Japanese yen moved laterally during the Friday session. It proceed to grind close to the 112 level and if the market is successful in breaking higher than the peak of the range for the day, the next move of the market would be towards 113 handle. Buyers continue to jump in the market following the dovish decision of the Bank of Japan regarding its monetary policy. Any pullback cannot be a telltale sign of a downtrend, not until a break lower than the 110 region has been achieved to determine if the potential uptrend has ended.

[Andrea ForexMart]

EUR/USD Technical Analysis: July 5, 2017

 

The euro-dollar pair resumed its downfall while the U.S. yields were able to make further progress on the back of the stronger-than-expected result of the  ISM Manufacturing report issued on Monday. The US market was closed on Tuesday due to  Independence Day holiday, however, there are few catalysts that stimulate the EURUSD amid balance of the week which includes the United States’ Payroll report on Friday.

 

The pair headed lower and bound to test the support close to the 10-day moving average found at 1.129. The exchange rate eased from the 1.14 handle which is considered the 1-year high and stayed around 1.1350 region near the peaks of August 2016.

 

The resistance highlighted the 1.1444 mark. Momentum came in neutral while the moving average convergence divergence (MACD) histogram prints in the black linked with a flat trajectory which suggests some consolidation.

[Andrea ForexMart]

EUR/USD Technical Analysis: July 6, 2017

 

The EURUSD rebounded from its session lows after the release of FOMC minutes which indicates rising concerns of Fed officials regarding the drop in inflation accelerating.

 

The pair buoyed due to stronger data showed by the EU PMI and Retail Sales.

 

Peter Praet from the European Central Bank strongly suggests to be leery and patient and take it slow in changing the monetary policy.

 

The pair further bounced around the support level 1.1318 close to the 10-day moving average.

 

The resistance approached the 1.1444 region around the June highs. The momentum on the euro-dollar pair came in neutral while the moving average convergence divergence (MACD) histogram prints near the zero index level. The index constitutes a flat trajectory pointing towards consolidation.

[Andrea ForexMart]

AUD/USD  Technical Analysis: July 10, 2017

 

The main trend of the AUD/USD pair in the daily swing chart is moving in an uptrend. However, the momentum is pushing it to go lower. When the trade exceeds the .7712, this will shift the main trend to move up.

 

A trade at the .7571 level indicates the continuation of the downtrend and possibly towards the minor base at .7535 region. A breakdown to this level will shift the course of the minor trend to go down.

 

The main trend range between .7372 and .7712 with a retracement level at .7542 and .7502 as the next lower target. With the uptrend of the market,  the buyers will most likely return to the test zone. For short-term, the range is between .7712 and .7571 with the retracement area at .7642 and .7658 which is the next upside target. Sellers might counter the trend belligerently and attempt to create a secondary lower top in the next test.

 

The closing during Friday was positioned at .7600, similar to the price movement this morning. The direction of the AUD/USD pair highly depends on the trader’s sentiment to the downtrend angle at .7592.

 

When the .7592 is held, this signifies the presence of buyers in the market and could further go up with the potential targets at .7632, .7642, .7632 and .7658 levels. On the other hand, when the .7592 level is kept steady, this indicates the presence of sellers. The target level when the price moves to the downside with the initial target at .7571 then .7542 to .7535 levels.

 

Traders should monitor the angle at .7592. The reaction of traders will determine if buyers will enter the market or sellers will put in a selling pressure instead.

[Andrea ForexMart]

GBP/JPY Technical Analysis: July 11, 2017

 

The British pound attempted to soar against the Japanese yen but failed as it pulled back to the 147 level. The market has been advancing in the long term more like grinding and gain from small increments.

 

It seems that the market is going to decline for any particular period of time since the Bank of Japan will most likely maintain its low borrowing rates for long-term. Whilst the Bank of England might increase its rates in near-term and after some time, the price could break towards the 150 level. Currently, it is a little bit over extended laterally that makes grinding a way to gain impetus and proceed to the upper channel for long-term.

 

Buying dips would be an ideal to gain in short-term but restricted to not so good moves (20 to 30 pips is attainable). However, if it breaks lower than the 146 level then this could proceed lower towards the 145 handle which can be more supportive compared to the areas being tested as of the moment.

 

It may be a bit difficult to trade the GBP/JPY pair yet the market signals that they favor the uptrend.  Hence, it is best to hold shorting this pair especially since the 150 is being strongly resistive. However, if this has been gapped, the market could rally much higher for an extended period.

 

For now, the short-term profits in the market could get bigger once it gains momentum but it still requires more patience to trade this pair in the market.  

[Andrea ForexMart]

EUR/GBP Technical Analysis: July 12, 2017

 

The Euro against the British pound pair declined at the beginning of Tuesday session as it reached the 0.88 level below. Although, there is a significant amount of support found in the market as a whole as it has been in the previous resistance. Hence, it is reasonable for the trend to bounce off.

 

After the comments of the Monetary Policy Committee member Broadbent, traders began selling the pair as it has been less hawkish than anticipated. Although, this is quite an overreaction. Towards the end of the day, the 0.89 level is being attained which offers a bit of resistance. Hence, pullbacks may be the best way to move forward while the 0.90 level is being resistive for long-term which could appeal more to traders.

 

Buying in the dips is the recommended to enter the market where they see pullbacks to be valuable. Hence, traders are beginning to sell the British currency first.

 

The 1.28 level is being massively supportive in the GBP/USD pair. If it persists in having a support level in the said area then it could not reach the 0.90 level immediately. However, if the British pound breaks down, this will be a significant move for the U.S. dollar which will put a negative pressure on this pair particularly to the British pound as a whole.

 

Both currency markets should be observed but would be relative to each other. It is not advisable to sell this market due to the impulsive attitude is seen for the day.

[Andrea ForexMart]

EUR/USD Technical Analysis: July 13, 2017

The euro-dollar was able to clear the level 1.1488 followed by the strong data of the EMU production while the ECB Governing Council member, Ignazio Visco emphasized again that the European region should have a stronger expansionary policy.

The exchange rate had reversed its direction during the latter part of the session, then whipsawed after the testimony of Fed Chair Janet Yellen in front of Congress. The exchange rate further increased, however, failed to preserve its gains after an upward movement towards the 1.1489 region which is currently the resistance. The support of the pair can be found on the 10-day moving average at 1.1404 mark.

The momentum gained the neutral position while the MACD histogram is printed near the zero level and the index further prints in the black with a flat trajectory which indicates consolidation.

The rate consolidates continuously after the break out and hovered in the bull flag continuation pattern which is a respite that prompts higher.

 

[Andrea ForexMart]

GBP/USD Technical Analysis: July 18, 2017

 

The British currency slightly weakened on Monday as traders returned to the market. The market is trying to re-enter the break out level to look for additional buyers. This is because of the  “profit collecting” in the near-term.

 

Moreover, we can take advantage by searching for a bounce. The 1.30 region would likely be offering lots of support which is previously known to be resistive.

 

The US dollar has recently become competitive and it looks like it will resume because of the tightening policy of the Fed Reserve which seems to be slightly firm than expected.

 

The sterling was oversold for the past few months which led the people to conclude that the British exit isn’t that critical. However, it doesn’t mean that this will not undermine the British economy or maybe the market just reacted exaggeratedly with regards to the vote.

 

Having said that, the market would still continue to search for more buyers for the pound and the next goal can be found above the consolidation area which was previously part of 1.3450 level. It does not necessarily mean that it would be so easy and will acquire some pullbacks because the market remains to be volatile but there are longer-term buyers who start collecting GBP since it has lower cost in the past.

 

When the economy of Britain was able to fully recover, the GBP will depreciate hence many traders will find a way to raise the value of one of the world’s strongest economies.

[Andrea ForexMart]

USD/JPY Technical Analysis: July 20, 2017

 

The U.S. dollar against the Japanese yen moved sideways in the beginning of the Wednesday session followed by a breakdown towards 112 level. It further goes down towards the 111.50 region where sellers are anticipated to be seen. The 111 level offers sufficient support although the “real” support is found around the 110 handle.

 

This area is presumed to have a buying pressure while the short-term sellers will persist on pushing the price down. As long as it stays over the 112.50 region, the sellers will have the leverage. If the market successfully breaks above the said level, the trend could be reversed and reach towards the 113 handle. A break above it would then push the price towards 114 level.

 

The 112 level is a significant level in this chart and the market will persist to be highly volatile. On the other hand, the U.S. dollar will be at a disadvantage because of interest rate issue. Overall, the market will proceed with a selloff as the trend rallies.

 

For the long term, buyers can be seen close to the 110 handle in consideration of technical outlook. Volatility will remain which is usually the case and the pair will persist to be highly sensitive to the major news will be released from the Federal Reserve. It is possible to for both buyers and sellers to get what they want after some time. There are different positions possible for various traders as the volatility picks up in the market.

[Andrea ForexMart]

EUR/USD Technical Analysis: July 25, 2017

 

The yields across the eurozone weakened while the US dollar make further progress and the 10-year bund yields moved lower at 0.50% as the spreads of the euro area narrowed, following the sluggish results of the PMI readings based on the doubts of M.Draghi to get involve with the QE tapering.

 

The fresh dip in long yields influenced the EURUSD, however, the remarks from Mersch yesterday verified the postponement and not the cancellation of the QE. Moreover, the ECB will reduce the volume of its asset-buying program which is expected to start earlier in 2018.

 

The euro-dollar pair rallied to its renewed 23-month high around 1.1694 level and headed lower amid the balance of the trading hours to close the day.

 

The support for the pair entered the 1.1523 region that is near the 10-day moving average. The resistance reached the 1.1717 mark near the highs of August 2015.

 

The momentum is still positive as the moving average convergence divergence (MACD) index prints in the black linked with an ascending trajectory and seen pointing to a higher exchange rate.

[Andrea ForexMart]

EUR/GBP Technical Analysis: July 31, 2017

 

The Euro against the British pound surged during the Friday session although there some resistance found close to the 0.8960 level. The market had a roll over for the few hours but was limited by the resistance level. There is much support found below that proceeds to market higher.

 

The next target would the 0.90 level and if the price breaks more and pushes the price towards 0.92 level for long-term. The 0.89 level below persists to be supportive that makes a breakdown far to happen. As shown in the weekly chart, the market sees the 0.89 level to be the support level.

 

Traders proceed to buy on the lows as it persists in supporting the euro currency. A breakout of both currencies occurred against the U.S. dollar although the market favors the euro more which is reflected in the pair. After some time, there is a lot of volatility in the market directed upward.

 

Shorting this pair may not be ideal but the once the price breaks higher than the 0.90 level. Buyers will turn more hostile as the psychological level of resistance. However, if the price gaps below the 0.89 level which is extraordinarily bearish that would adjust the short-term trend.

[Andrea ForexMart]

GBP/USD Technical Analysis: August 2, 2017

 

There is high volatility during the Tuesday session as it reached the 1.3250 level but was reversed later on. It seems that the 1.32 level is being supportive as the trend proceed moving higher.

 

A break lower would push the market for a support towards 1.3150 level then to 1.31 level. The British pound is going to be sensitive to a lot of noise which is anticipated as amid the negotiations from the European Union and the United Kingdom. Hence, traders should be cautious of the of any abrupt changes in this pair.

 

The bullishness could persist for the long term. Although, this has been quite extended in the present time. A pullback opens more opportunity to make use of the current value. The market could target for a 1.3450 level above which the peak of the consolidation for the past few months.

 

However, if the market successfully gaps higher than the 1.3450 level, the next retest would be at 1.35 handle. A breakout would mean large bullish tone but it will not be long before the currency starts to rally once again. There will be high volatility from the start until this period ends.

[Andrea ForexMart]

EUR/USD Technical Analysis: August 4, 2017

 

The results of the European yields were mixed as it restricted the uptrend of the euro which signifies that Draghi has successfully kept the rates low. The ECB sees the need for the continuous support because of the less than expected result of the PMI. The European retail sales set in stronger than anticipated but this was countered by high jobless claims.

 

The EUR/USD was not able to surpass yesterday’s range but was able to increase the support level. Nevertheless, the trend persists to be positive with the support close to the 10-day Moving Average at 1.1747. The resistance level is seen close to the weekly highs at 1.1910.  

 

Overall, the momentum is optimistic with the MACD histogram shown a black indicator with an upward sloping direction that could lead to a higher exchange rate. The RSI positioned higher with the price indicating a positive momentum upward. Currently, the price is set at 77 which is higher than the trigger level 70 to enter the overbought area. Hence, a correction is possible to occur.

[Andrea ForexMart]

EUR/USD Technical Analysis: August 8, 2017

 

The US payrolls data came in stronger than expected on Friday which buoyed the greenbacks and reacquires some of its gains yesterday. The German Industrial production unexpectedly declined but was able to maintain the single European currency.

 

The move made by the administration of Donald Trump relative to tax incentives help the dollar to bolster and must sustain the interest rates.

 

The inflation in the eurozone and the United States is expected to be released on Friday, this further support trader to determine whether growth will overrun inflation outlook.

 

The EURUSD edged a little bit higher yesterday and bounced off the support at 1.1774 region near the 10-day moving average. The resistance entered the 1.1910 level around the highs last week.

 

The momentum of the euro-dollar pair became negative while the MACD histogram developed a crossover sell signal. This appeared due to the spread that crosses under the 9-day moving average of the spread. The indicator jumped from positive to negative zone and confirmed a sell signal. The index prints in the red with a descending trajectory pointing to lower prices for the EURUSD.