Re: Daily Market Analysis by ForexMart

[AppleFX]

USD/JPY Technical Analysis: May 2, 2017

The USD/JPY provided a bullish sentiment on Monday. A bounced off from the level 111.20 pushed the spot outside the red.

The pair tends to increase throughout the night until the morning. It further moves near 112.00 during the middle part of the day.

Meanwhile, technical indicators owned a positive stance. The 50-EMA have seen to cross upwards the 100-EMA. The RSI together with the RSI increased, en route northwards.

Resistance plunge in the 112.00 mark, support lies at 111.00 region.

Forecast says, maintaining an upward pressure could lead to a breakout within 112.00 region making 113.00 level, the next target of the traders.

[AppleFX]

NZD/USD Technical Analysis: May 2, 2017

The New Zealand currency was able to gain higher against its U.S peer during Monday trades, however, encountered some sort of trouble over the 0.69 handle. The market continued to turn around causing a possible drop below the region 0.69 and a long-term downtrend has to remain. Otherwise, a break on top of the 0.6933 mark will lead the market towards 0.6950.

The market decided to sell off but it seems unsustainable which could possibly make a strong rebound.

The NZD appeared to be highly sensitive with regards the general sentiment of the commodity markets. While a cut through over the region 0.6950 would push the market near 0.70 mark but the possibility of this to happen is much lower.

A sharp and temporary pace is probable and part of it came from the May Day celebrations while volumes were light. Considering this, a door for selling opportunity has opened prior the kiwi was beaten up

A monumental risk on rally within the globe is required for a convincing power that this pair could show a buying signal at any moment.

[AppleFX]

EUR/USD Fundamental Analysis: May 5, 2017

The EUR/USD pair inched higher during yesterday’s trading session after the US dollar dropped in value across the board due to some weak economic readings from the US economy. However, it has to be taken into consideration that these set of data were generally minor ones, such as trade balance, unemployment claims and factory orders. The major economic readings will be released today, and these are expected to induce more volatility into the market as compared to yesterday’s levels.

During the past few weeks, the EUR has been consistently strong as compared to other major currencies due to a slew of positive geopolitical and economic readings from the eurozone, which came in the form of the French national elections as well as the Brexit negotiations. These has then made it very hard for usual doves such as Draghi to have optimistic views for the landlocked region’s economic status. On the other hand, this has enabled the EUR/USD pair to surpass its range highs during the past two weeks and is looking poised for more although during this period the US dollar was also of higher value as compared to now. The dollar is actually looking forward to a possible rate hike this coming June but strength of the euro can be seen on how the currency pair still manages to hold its ground in spite of this particular bit of news.

For today’s session, the wages report as well as the NFP report will be released by the US economy. The wages report will be closely monitored by market players since a lack of boost in the wages report will not be enough in spite of a rate hike possibility and additional employment rates. As such, any inconsistencies with these said data will cause the EUR/USD pair to surpass 1.1000 points and could possibly make its way towards 1.1120 points.

[AppleFX]

GBP/USD Fundamental Analysis: May 5, 2017

The GBP/USD pair continues to exhibit a very limited trading range on both sides of 1.2900 points and has been unable to surpass this range which has been the pair’s current trend as far as this week is concerned. There have been various types of PMI data coming from the UK economy during the past days and although these were all able to surpass initial market expectations, these were unable to help the cable pair surpass the very heavy resistance range at 1.2940 points.

The cable pair strayed from 1.2900 and went under this range during the previous session but then a string of positive PMI data was able to keep the pair under control and push it back towards 1.2900 points, where it traded within a 30-pip range during the rest of yesterday’s session. While the euro was able to take advantage of the dollar weakness yesterday, the sterling pound was unable to capitalize on this development and was instead relegated to trade within its current range. There was a scarcity of significant geopolitical and economic readings yesterday which could have helped the sterling pound to inch higher, and this is one of the reasons why the GBP/USD pair was kept in such a tight range. However, the pair’s ranging is expected to be broken later today when the NFP report and the employment data gets released into the market by the US economy, with a breakthrough of 1.2940 points possibly triggering the pair to move towards the very crucial 1.3000 points. An interest rate hike in June is pretty much in the bag, and this is why the dollar will have to maintain its footing via strong economic data which could be released today.

For today’s session, a handful of Fed officials including Fed Chair Janet Yellen will be making speeches later in the day aside from the release of important data such as the NFP report and the wages data. These series of events are then expected to increase the market volatility. The pair could either surpass 1.2800 points or make headway towards 1.3000 points.

[AppleFX]

NZD/USD Technical Analysis: May 5, 2017

The New Zealand dollar dropped during the Thursday session. The market has gone bearish because of the commodity market and the jobs data to be released. Traders should not forget that the price trend for the kiwi dollar would be influenced by the commodity market. The current trend could go higher reaching the 0.68 handle and short-term surge would mean selling opportunity. If the price breaks lower than the psychological level, the price would go downward instead. Traders should anticipate high volatility in the market but would be favorable for the U.S. dollar since the awaited jobs data to be released today.

The Future market also influences the currency although would not be directly influenced with any market. One could find a correlation between milk futures and the kiwi although it would not do much since the liquidity isn’t that high. The safe way is to compare with other commodities to determine how this currency will move and its overall tone in the market and wait for a short-term surge. It is possible to reverse the trend when it breaks higher than the 0.69 level and turn bullish as a follow through and climb higher.

[AppleFX]

GBP/JPY Technical Analysis: May 5, 2017

The British pound paired with the Japanese yen moved to and fro during the Thursday session as it declined lower than the 145 handle although a momentum built up and the trend went back up again. Traders should expect a choppy trading and going for a long-term uptrend that makes pullbacks good to buy.

The next target level would be at 146 level while 145 region gives a significant support in the pair. The long-term availability of this market looks promising but the highly sensitive which means that the job data will definitely have an impact to this pair. If the price breaks lower than the 72 -hour Moving average that is in blue, there will be higher selling pressure but it is best to buy the pair instead.

Furthermore traders should also monitor the stock market that would also be relevant for this pair. It would give a pellucid perspective in the overall condition of the market and determined risks associated. Traders will most likely take advantage of this pair if there is higher buying pressure but remember that there will be choppiness in the market especially as it moves upward. The recent report will have an effect to the pair but would still be in an uptrend. Hence, some support levels below would give buying opportunities in the market especially that this could climb higher.

[AppleFX]

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.

[AppleFX]

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.

[AppleFX]

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.

[AppleFX]

USD/CAD Technical Analysis: May 8, 2017

The greenbacks edged higher versus its Canadian counterpart amid the week, however, the result for job figures surprised the market on Friday, providing a greater result than expected. In light of this, the market seems to buy oil as the demand is anticipated to grow. But the oil is dealing with some issues causing the strength of the petroleum market to be short-term.

This further helped the loonie throughout Friday trades as they formed a shooting star in a little while as the session ended. Still, the region below 1.36 appeared to be supportive and certainly, the buyers will return. Since the employment status of Canada is in neutral stance because they have missed the released of job numbers.

It is recommended to buy dips in USDCAD as the market assumed to met buyers down from the level 1.360.

A turnaround in the oil rally will take place at the $47 range which could move the market in the upside. The mark 1.40 remains to be the target but might take a longer time to reach that point.

Selling is ruled out as the market seems impulsive and will be smooth again for the following sessions, nevertheless, it should be contemplated well to make the trade viable.

Contrarily, a break beyond the weekly top of the range provided a bullish signal and an advance to 1.40.

[AppleFX]

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.

[AppleFX]

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.

[AppleFX]

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.

[AppleFX]

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.

[AppleFX]

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”.

[AppleFX]

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.

[AppleFX]

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.

[AppleFX]

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.

[AppleFX]

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.

[AppleFX]

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.

[AppleFX]

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.

[AppleFX]

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.

[AppleFX]

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.

[AppleFX]

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.

[AppleFX]

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.

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