Daily Market Analysis from ForexMart

[Andrea ForexMart]

EUR/GBP Technical Analysis: February 7, 2018

 

Volatility was predominant during the Tuesday trading session as the U.S. dollar dominates the market, which had an unfavorable effect on both currencies. The market shows the relative strength of the market.

 

It has been bullish during the Tuesday trading session as the British pound declined against the U.S. dollar. Nonetheless, the euro did not fall, as much as, the British pound. For now, the pair will be based on their relative strength but since the euro did not drop as low as the British pound, traders are anticipated to trade and push the pair higher. The market is close to the level of 0.89 which is a fair value in the consolidation area. The upward momentum implies the uptrend of the pair towards 0.90 level.

 

A massive resistance was seen at the area of 0.90 which has been the upper boundary in the past and it will be not easy to break this level. Although, there is a bit of noise found lower than the level of 0.8875 which proceeds to offer support in the market. I would suggest buying on the lows but it will be part by part instead of a big move. The pair will break out of the consolidation area and proceeds to move up towards the level of 0.95. Alternately, it is also possible to a have a new low which would send the market to reach the level of 0.86 based on the long-term charts.

 

[Andrea ForexMart]

USD/CAD Technical Analysis: February 12, 2018

 

The American dollar rallied versus other currencies around the globe, and the Loonie seems different. The USD/CAD rally due to declining prices of the oil. The Canadian dollar is commonly used by currency traders as a substitute for the oil markets which means that when the WTI Crude Oil drop, the Loonie will typically follow.

 

The US dollar attempts to create some stand to resume the bullish pressure, this could be done if the oil markets continue to remain weak. An unidentified employment figure will be released on Friday from Canada but failed to help things. Looking forward, the interest rates in the United States are rising which indicates a good sign for the currency. With this, the buying pressure is projected to continue, however, there is a tendency that the opposite thing may happen. We could consider this upon breaking down under the hammer formation last week. Basically, it is a breakdown beneath the 1.22 handle. In the past, there are a lot of short-term volatility in the USD/CAD which normally occur upon the intertwining of the two economies.

 

It should be noted that the United States and Canada are each other’s biggest trading partners which often grind each other. It can be assumed that this point can be defined as a “crucial inflection”, so it is advised to maintain a small position and add when the market establishes itself well.

 

[Andrea ForexMart]

EUR/GBP Technical Analysis: February 21, 2018

 

The single European currency paired with British pound had broken down during the course of Tuesday’s session. The EUR/GBP pair moved lower near the 0.88 mark which is a previous support and resistance. Hence, it should be expected that the market will have plenty of noise around that level.

 

Generally, the market will be noisy due to potential headline risk brought by the euro/pound pair in line with the negotiations of the European Union and the United Kingdom. Therefore, this problem might continue until the next couple of months that make trading tough over a long period of time.

 

Breaking down under the 0.88 region will allow the market to touch the 0.8740 zone. Otherwise, a rally from that point will push the market above the 0.8860 level or even to 0.90 eventually. This type of market requires players to take profits hurriedly for it’s nearly impossible to hover a trade in the longer-term, except when one is able to deal with wild swings for both profit and loss. Nevertheless, the general upward trend will resume since participants favor the EU stability against the uncertain future of the UK. It is possible to move on top of the 0.93 area.

 

[Andrea ForexMart]

EUR/USD Technical Analysis: March 9, 2018

 

The euro paired with the dollar had whipsawed yesterday and pulled lower after the monetary policy meeting of the ECB. The focus of the meeting was back again about removing the easing bias. The European Central Bank (ECB) decided to kept the interest rates unchanged and further confirmed the timeline of the Quantitative Easing (QE) until the end of September. Moreover, the unemployment claims edged higher from its 48-year low over the past 24 hours. But the US labor market remained tight to support the American currency.

 

The EUR/USD pair moved downwards and formed a triple top followed by a head and shoulder reversal pattern. The resistance entered the 1.2446 region which is close to its March highs, while the support touched the 1.2308 level around the 10-day moving average. The momentum had a reversal and approached the negative territory. The MACD index showed a crossover sell signal as well as the fast stochastic indicator. As of this writing, the MACD histogram prints in the red with a descending sloping momentum which reflects lower prices.

 

[Andrea ForexMart]

EUR/GBP Technical Analysis: March 19, 2018

 

The EUR/GBP pair has plenty of noise during the trading course last week. However, the current position is in the significant consolidation zone. The level below the 0.87 is the “floor” of the market and the area above 0.90 is the “ceiling”. The pair seems appealing to short-term traders but there could be an ascending trend in general. We are waiting for the results of the talks between the United Kingdom and the European Union, upon the clarity of this, the EURGBP will strive to conduct significant moves.

 

Despite of this, the market may still offer significant opportunities but the longer-term trader will continue to struggle and possibly hold the range that provides benefits in trading despite any fluctuations. An ability to break down under the 0.87 handle will push the market to the 0.85 eventually. Otherwise, a cut through on top of the 0.90 region would give rise to a “buy-and-hold” scenario. The level above 0.93 handle is the most recent high. As of this writing, there are no break out expected in the next few weeks and would lead to a range bound short-term market.

[Andrea ForexMart]

GBP/USD Technical Analysis: May 9, 2018

 

The British pound declined almost throughout the Tuesday session in order to test the major uptrend line once again. The 1.35 level is still significant given that it is psychologically relevant. There is also a lot of buying and selling in this area previously, which, at the same time, coincides with the major upward line. Hence, in consideration of these factors, there will be a decision soon.

 

The British currency dropped during the Tuesday session in reaching the uptrend line at 1.35 level. Essentially, a breakdown below could push the price further towards 1.33. Ultimately, a breakdown could loosen up sharply since the uptrend line is important. The level of 1.30 if a significant level as much as the 1.35 handle. I presume that a breakdown is logical since the U.S. dollar continues to strengthen in the summer season.

 

The European Central Bank has already announced that interest rates will be maintained a bit lower for a period of time that previously considered, which, in turn, added pressure on Sterling. Although this might be just for short-term and in the next few months, it is likely for buyers to return in this currency. However, the U.S. dollar will probably grow in the upcoming months which would greatly affect the currencies relative to the bond market and of course interest rate expectations. Alternately, if a breakout occurs at 1.3650 level, then there is a chance for a kick in upward momentum.

 

 

[Andrea ForexMart]

USD/CAD Technical Analysis: May 15, 2018

 

The week began for the US dollar against the Canadian dollar in testing the psychological level of 1.2750 for support. The market will probably stay in this area and bounce more than once.

 

During the Monday trading session, the greenback slid lower and reaches the level of 1.2750. If the pair breaks down again below the 1.27 level, the price could further go down towards 1.25. Alternately, if the price breaks above the level of 1.28 instead, the next course will be towards  1.30. Noise will still be present in the market around the said level with a lot of variable factors to affect the trades. The U.S. is likely to pick up momentum due to higher interest rates again in the previous weeks but it was not favorable for the greenback yesterday.

 

The oil is starting to rally again but could add more pressure on the market. We should focus on the 10-year treasury note in the United States and if the interest rates drop as well, this is a bad sign that would propel the market lower. There is a lot happening for the Canadian dollar yet above the level of 1.30 offers a lot of resistance, which is very apparent on the trend, with a lot of noise for a while now. In case that the market breaks through above 1.30 for some time, the price will continue to climb higher. Otherwise, we should anticipate a lot of noise for the bank and a technician to rise higher for a bit.

[Andrea ForexMart]

GBP/USD Technical Analysis: May 22, 2018

 

The British pound slightly declined at the beginning of the Monday session as it reached the level of 1.34 before finding buyers. Since there are still signs of support, it looks like it supported the fight for buyers. Yet, there are some major concerns above.

 

Trading the British major currency pair slid down towards the psychological level of 1.34 before going up again. It has shown a significant amount of bullish pressure but there could also be signs of significant resistance in the previous uptrend line, established in the yellow ellipse on the chart. This gives a significant amount of resistance with a high probability of a rollover then we could look for the level 1.34 below, which was also supportive in the past. A breakdown below would allow the market for a decline up to the level of 1.33 and further to 1.30.

 

We should be cautious of any rally, at least not until a successful breakout to 1.3550. For now, we could reverse the whole situation completely, but I think there will also be a continuation of dollar strengthening in the short-term, which is likely to extend for the rest of the summer and continue its rally in the U.S. When a breakdown occurs below the uptrend line, this could become a problem for the British pound. Although, it may not necessarily be a problem as much as the strengthening of the U.S. dollar. I would look for some type of exhaustive candle near the area of 1.3475 to begin shorting this pair.

 

[Andrea ForexMart]

GBP/USD Technical Analysis: June 18, 2018

 

The British pound was able to dodge the immediate impact of the rise of the dollar while the euro dropped by two significant points that dominate the market in the previous week. The dollar gained from the rate hike which started by the Fed and the positive outlook of the Fed in the economy.

 

The hawkish sentiments gave t chance to the dollar to rise and the dollar bulls to plan ahead with two more rate hikes to look forward to. The Fed gives similar signals which still yet to be seen if they would continue the process and they would implement this in a specific period of time later on. We have witnessed that the rate hike would have minimal impact on the market, especially on the pound.

 

It seems that everything is going smoothly in the UK as the Brexit negotiation starts to advance and there are no signs of risks yet. Hence, the pound maintained its position in the support area despite the strengthening of the dollar and activities in the eurozone. The European Central Bank decided to extend the easing program which in turn, weakened the euro. Although, these things did not really affect the pound as it continues to trade close to the area of 1.32.

 

There are some strong purchasing in this area, as well as at the level of 1.30. Once this is achieved, the lead will be in the hands of the bulls which is likely to be maintained in short term. It seems that there is also no major event to affect the movements and we can say that the price is in consolidation and persists to be within the range for the day.

 

[Andrea ForexMart]

AUD/USD Technical Analysis: June 27, 2018

 

The Australian currency had slightly decline amid trading course on Tuesday and was able to touch the 0.74 level below. According to the chart, the light blue circle that formed a “W pattern” at 0.7350 zone indicates some bullish reversal signal, the said level is considered significant in the longer-term chart. With this, it seems that we are in a neutral position attempting to reverse the overall market sentiment which would cause a lot of noise.

 

In case that market will break on top of the 0.75 handle, this shows a bullish sign which appears to hang in the trade of a significant trend in the longer-term. Below this zone seems to offer enough support to help the market buoyed. In general, the market may continue to be noisy but holding a position above the significant area of 0.7350 would likely attract more buyers.

 

Aside from that, the weekly charts generated a massive hammer formation last week which showed a bullish sign, as expected. Hence, there is low chance to have a good rebound which is in favor of the short-term charts. Otherwise, a break under the 0.7350 mark would pull down the market toward 0.70 zone.

 

[Andrea ForexMart]

GBP/JPY Technical Analysis: June 28, 2018

 

The British currency had seesawed during Wednesday trading session and rebounded from the ascending trend line below to turn around and touches the ¥145.33 level. Apparently, the market will continue to have a lot of noise in general due to fears about trade wars. However, there are certain attempts to seriously break down through the upward trendline that can be seen on the hourly. An ability to move under that level would allow the market to reach the ¥144.50 level or lower.

 

Otherwise, the market might bounce from that point when some good news was released. From there, the market is expected to go near the ¥146 level, which is an area of resistance barrier of various minor in between that requires a significant amount of momentum to gain a position above.

 

Remember that the GBP/JPY pair is predicted to be extremely volatile and highly sensitive with regards the news and current issue between China and the United States. It is believed that this market is going to receive a lot of bad news despite the significant bounce from the remarks of Donald Trump that he is not interested to further heighten the trade war to hold China from investing in the US technological firms.

[Andrea ForexMart]

AUD/USD Technical Analysis: July 3, 2018

 

The Aussie dollar had a significant break down during the trading course yesterday and further cut through the 0.7350 zone. There is a lot of support underneath that level and it appears that players attempt to slice through it. If this happens, the market would likely move to the 0.73 handle or even to the 0.72 mark eventually. At present, rallies may be sold-off since Sino-American affiliation continue to fall apart. The nearing deadline for the trade tariff on Friday appears to be true but traders are also concerned about China’s retaliation plans.

Market players will be confident to buy the Australian dollar again until the trade pressures eased down due to bid for safety. As of this writing, the market may drive lower but traders might experience an occasional bounce. Also, the markets may resume moving based on the headlines while the downside may be the most convenient way to trade, considering that the markets avoid risks.