Re: Daily Market Analysis by ForexMart

[AppleFX]

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.

[AppleFX]

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.

[AppleFX]

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.

[AppleFX]

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.

[AppleFX]

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.

[AppleFX]

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.

[AppleFX]

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.

[AppleFX]

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.

[AppleFX]

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.

[AppleFX]

GBP/USD Fundamental Analysis: June 1, 2017

The GBP/USD pair continues to exhibit a negative price action although it was able to get some rest from the recent drop in the value of the greenback. As the UK snap elections are drawing closer and closer, the market is also getting more anxious as the days go by. This market anxiety is now clearly reflected in the performance of the markets, with the sterling pound still unable to catch a significant break as far as the market is concerned. Although the cable pair was able to advance from its range lows of 1.2800 points towards 1.2900 points, the currency pair still looks very weak and could crash anytime soon.

The major reason behind this weakness in the sterling pound are the various opinion polls which suggests that May’s current lead in the forthcoming elections is dwindling bit by bit, with May possibly failing to garner her initially expected majority win. Theresa May had announced the snap elections in the hopes of getting a more substantial majority as compared to her current majority, thereby establishing her position as one of the strongest world leaders. However, with her popularity losing momentum daily, this plan of hers might not come into fruition come election day. This has then caused the possibility of a hung parliament to be endangered, which could spell disaster for May and her ongoing Brexit talks and could also be very bad news for the state of the sterling pound. This could also potentially encourage Scotland to call for another independence referendum.

For today’s trading session, the UK economy will be releasing its UK PMI data, although the current risks surrounding the sterling pound might not be able to be counteracted even if the readings come out as positive. Meanwhile, the US economy will be releasing its unemployment claims and ADP employment reports, all of which are expected to increase the cable pair’s volatility levels. Traders are then encourage to proceed with caution with regards to trading with the cable pair as it is expected to be highly volatile in the next few days.

[AppleFX]

EUR/USD Technical Analysis: June 1, 2017

The EURUSD accelerated on Wednesday amid lower than expected inflation statistics released by the European Union. Meanwhile, France also reported disappointing figures upon issuing HICP data, this was announced along with the soft German data on Tuesday.

The retail sales of Germany declined and yet the employment gained much strength beating expectations. The European Central Bank mandates a single monetary policy fixates on inflation which compels ECB President, Mario Draghi to conduct an effective argument in order to keep the bank’s dovish view of forward guidance.

The pair continues to create a bull flag formation which is designed as a continuation pattern that takes a pause to refresh. This is a breakout pattern that resembles a cup and saucer and we could get the picture when prices entered the previous week highs found at 1.126 region.

The next target for the resistance level is close to November 8 highs touching 1.1299 mark. While the support approach the 10-day moving average took the 1.1189 range.

Momentum appeared neutral since the MACD histogram prints around the zero-index level with a flat trajectory which further indicates for a consolidation.

The RSI (relative strength index) crept upwards along the with price trend suggesting an ascending positive momentum.

[AppleFX]

GBP/USD Technical Analysis: June 1, 2017

The GBPUSD slowdown during the session on Wednesday and made a reversal to generate a significant bullish trend. A gapped on top of the level 1.29 indicates a bullish signal whereas a pull back was executed from the mentioned region but this appears to be an impulsive price action which does not have any impact. With this, the market has the tendency to move near 1.30 area and could possibly climb higher. The sterling was oversold due to concerns regarding British elections, however, the pound came in resilient and there are no signs that the GBP will shift its attitude at all. The absolute floor of the market is found at the area 1.2750 and a break down beneath there would impose selling the market and a significant resistance hurdle in the past. The trend during Wednesday’s trades was massive and somewhat parabolic which reflect a remarkable tenacity when buying. Therefore, a pullback is an advantage against this move.

Moreover, the market should remain to have buyers and expected to fight to the upside in the longer-term. The move will intensify upon acquiring an overwhelming victory for the conservative in the UK elections.

Further volatility is expected and yet the upside tends to progress forward, hence small position could the easiest road in trailing this market.

[AppleFX]

USD/CAD Fundamental Analysis: June 1, 2017

The USD/CAD pair was able to advance further towards its range highs during the previous session in spite of the greenback suffering blows against other major currency pairs due to a series of disappointing economic data from the US economy. The loonie is now trading at just above 1.3500 points which is considered to be a very essential trading region for the currency pair. However, the market has yet to see whether the USD/CAD pair will indeed manage to go even higher and reclaim its bullish price action or if it will correct and return to its previous trading range.

This surge in the value of the USD/CAD pair has been mostly attributed to a string of weak economic data from Canada. As the Canadian GDP was released during yesterday’s session, the annual and quarterly readings for 2016 disappointed the market in spite of a very positive monthly reading. This was far worse than what the market had initially anticipated and has caused the loonie to correct and the USD/CAD pair to increase further in value. Oil prices also dropped while the Canadian inventory data showed a solid draw in addition to an added increase of Libyan production data. This caused both the Canadian dollar and oil prices to drop and was more than enough for the currency pair’s bulls to help prop up the value of the USD/CAD pair past 1.3500 points where it is currently sitting as of the moment.

For today’s session, the market is expecting the release of unemployment claims data and the ADP employment report from the US economy, both of which are of utmost importance since this serves as a precursor to the incoming NFP report due tomorrow. The oil inventory data is set to be released today, and this, together with the NFP report will most likely determine the short-term price action of the USD/CAD pair.

[AppleFX]

USD/CAD Technical Analysis: June 1, 2017

The U.S. dollar against the Canadian dollar declined during the early Wednesday trading. Followed by a breakout at 1.35 handle. The market attempts to break out again and reach for a fresh new higher than the 1.3530 region that opens buying opportunities.

The oil market is also declined which is not good for the Canadian dollar and bring the price up which has been in an uptrend for some time. This means that buyers are expected to return to the market.

It may not be a good time to position this pair for short term until a break lower than the 1.34 handle but as of now, we cannot tell what are the chances for this to happen. It would be difficult for the market if the price breaks in the upper channel towards the 1.36 handle which has been strongly resistive in the past. If oil continuous decline, it would most likely move higher that the current levels.

The OPEC production cut did not really have much of an effect on the market although this would contribute to the appreciation of the U.S. dollar against the Canadian dollar especially when more oil produced are released from the U.S. This worsens the condition since the pair will go higher because of this instead of going down.

However, if the price breaks from this level, it could reach as low as 1.30 region although this may take some time to occur. Moreover, a breakout in the 1.35 region is strongly resistive since las

[AppleFX]

NZD/USD Technical Analysis: June 1, 2017

The Kiwi dollar calmly traded during the session on Wednesday as the 24-hour exponential moving average continued receiving some type of support. Meanwhile, the 0.71 region still offers some psychological resistance, however, a break over the area is expected very soon. The pullbacks provide a buying opportunity since all moving averages are bullish and the level below 0.70 lured the attention of market players as it appeared to be large, round and an important psychological number. With this, the pullback seems valuable not until a breakdown under 0.70 occurred. And the market could probably be sold because the NZD beat a relative currency, the Australian dollar. The noise was prevalent as the chart shows that we are in an uptrend.

Moreover, the market would probably chop with a mild bias going upwards and at the same time, there is a possibility for a “long, slow grind higher” to take place.

As the New Zealand currency strengthened against its cousin, AUD, you may opt to buy this along with an Asian currency except that you refers to the selloff in JPY pair.

[AppleFX]

AUD/USD Technical Analysis: June 1, 2017

The Australian dollar paired against the U.S. dollar attempted to move higher but the 0.7475 region was strongly resistive during the Wednesday session. Instead, the trend reversed followed by a rollover towards the 0.7425 handle. This has been a significant support level in the past few sessions that makes a bounce from here expected to happen.

Traders should monitor the general risk appetite of the market since this could influence the pair. If the price breaks higher than the highs during the Wednesday session, the next target would be at 0.7510 region. A break in the upper region signals buying of the pair which is a significant break out. Overall, there is a lot of noise in the market.

Gold is essential in the movement of this pair but traders should also monitor the risk appetite. Others are cautious with the positioning scared of the status of gold market but this would be more damaging to the market.

However, this should not prevent the market from moving but most of the time have higher correlation in the market. There are days where the trend is headed in a different direction because of economic or geopolitical events. Over

Overall, traders anticipate choppiness in trading the Australian currency as they will be a lot of noise present due to geopolitical concerns. Short-term opportunities will come from time to time that traders could take advantage of.

[AppleFX]

GBP/JPY Technical Analysis: June 5, 2017

The British pound against the Japanese yen declined during the Friday session following a surge in the start changing the “risk on” attitude in a rapid pace. Moreover, the U.S. jobs data worsen the situation which is less than expected. There is also a lot of risk appetite from the market which is contradictorily beneficial for the pair.

From the current psychological levels, it seems that the market will rally from here on directed towards the 143 handle. The 142 level below gives significant support and if the market is able to sustain this, there is a higher chance for a rebound.

However, if the price breaks lower than the 142 level instead, the next move will most likely go down towards the 141 handle. Nevertheless, there is a high chance for volatility and choppiness which is already expected for this pair especially since it is risk sensitive.

Buying in the lows is advantageous for the market that makes it easier to trade this pair. However, it seems that this is fitting for buyers to get involved. Consequently, the market will go down towards the 143 handle and down to 144 handle.

For long-term, this pair will tend to move higher but the current risk appetite is uncertain but the stock market is reliable that could reverse trades lower in the day on Friday. This makes selling less appealing in the current condition.

[AppleFX]

NZD/USD Technical Analysis: June 5, 2017

The New Zealand against the U.S. dollar soared during the Friday session influenced by the weak reports of jobs data. There is no upward hint that makes it not surprising when it move higher.

From the start, the pair broke higher than the 0.71 region on Friday and it lingered within the upper channel. When buyers bought the pair in the lower channel, it could next towards the 0.72 level and above.

Overall, the market remains strong but being a pair with high liquidity, the succeeding moves will be big moving towards the upper channel. Nevertheless, buyers who missed the opportunity in the former move will most likely grab the next chance they have.

Buying lows is the ideal move to move forward with this pair. It seems that the 0.71 level is quite supportive but shorting to pair is not advisable in the current value of the pair.

Nevertheless, there will still be high volatility in the market but there are still opportunities available for this pair. If the trader is being patient with a certain amount of money, a trader can still find positions in the market. Buying is more profitable for this pair unless the pair breaks lower than the 0.7050 region which indicates a complete reversal.

[AppleFX]

USD/CAD Technical Analysis: June 5, 2017

The U.S. dollar attempted to surge in the beginning of Friday session. Soon after, this was reversed due to soft results of jobs data. The pair broke lower than the 1.35 handle signaling the downtrend of the pair. On the other hand, the long-term trend moves in an upward direction.

There is massive support found in the 1.3250 region. More buyers will come in the market if given enough time but for now, sellers are dominating the market for short-term.

The oil market also has a high impact in the market but as it is directed downward, this could push the price to move up. Also, higher volatility on Friday brought in gains for traders that could result to oversupply later on when the traders realized the current situation of the market.

Choppiness is anticipated in the market with some problems from time to time. Other than the oil market that had a high impact to this pair, the current job condition is the primary focus of the market more than other issues. Although this is just for short-term, traders could opt to go long on this pair.

A significant support is found close to the 1.3450 region while it is found at 1.3250 on the long-term charts. A bounce back from here or a move higher than the 1.35 handle hints a move to the upside. Some traders would sell this market but they should still remain vigilant in doing so.

[AppleFX]

AUD/USD Technical Analysis: June 5, 2017

The AUDUSD had a sharp increased on Friday followed by the disappointing reactions by investors against the measure of U.S. Non-Farm Payrolls. According to the data, the headline number presented a least than expected results coupled with the weak average hourly earnings. As the headline number was left behind, the Fed rate has 90 percent of chance to increase in June. But traders raise concerns regarding the bank’s potential to imply a lift on rates twice in the later part of the year. It became the main reason for the rally of Aussie and drop of the greens. The dollar gained less attraction due to sinking rates.

The major trend went down as reflected in the daily swing chart. On Friday, the momentum turned to the upside with the dramatic pattern of a closing price reversal bottom.

A trade within .7446 confirms the chart formation. A move over .7475 shifts the action as shown in the daily chart.

The main range highlighted the regions .7329 to .7517 while the retracement level touched .7423 to .7401 area which is the new support. The short-term range entered the .7517 to .7372 marks along its retracement zone which lies at .7445 to .7462, which are the upside focus. A break out through the area suggests a stronger buying.

As shown in the trajectory at .7440 around Friday’s closing, the possibility that the rally will resume during the earlier session is expected.

The price movement is influenced by the .7445 region close to short-term 50% level. A sustained trend above .7445 signaled strength for buyers. This will push the AUDUSD through the near-term Fibonacci level set at .7462, subsequent to .7472 which is a downtrend angle along with the major top that came in at .7475.

A cut through within this region will alter the major move upwards and generates an upside momentum to challenge the succeeding downtrend line at .7495. This is regarded to be the final support angle prior the main top shown at .7517.

Failure to get past through .7445 give the favor to the sellers. The next focus are the figures 7427, .7424 and .7423 which could be a critical area for support. Inability to hold the region will lead the Australian dollar lower, en route .7401.

Be cautious about the price action and analyze the order flow seen at .7445 in the entire session.

[AppleFX]

GBP/USD Technical Analysis: June 5, 2017

The GBPUSD declined on Friday and face through some volatility as the U.S. employment figures released with a lower than anticipated results.

The market now appeared to hover below the 1.29 handle considered as a major level. The ability to break on top of the said region would lead the market towards 1.3050 area which provided a significant resistance.

Buying on the dips remain to be the most suitable way in playing the market beneath 1.2850 that has been offering an amount of support. Meanwhile, a break over 1.29 range would trigger a continuous higher movement. In the long term, buyers will still get involved and show further strength sooner or later.

Headline risk could still remain since concerns regarding British exit keep forging ahead. This might influence the sterling in any moment. Ultimately, the pair can find a bottom upon staying beyond the level 1.2750.

Moreover, the built-in bid resumes in regards to the GBP. An attempt to move ahead the 1.3450 handle should be done. However, lots of issues and concerns surrounds the British economy, therefore it may take some time to reach the target. Selling is ruled out except when we cut through down the 1.2750 area.

[AppleFX]

EUR/USD Technical Analysis: June 5, 2017

The EURUSD moved through an upward direction on Friday after the release of weak data on employment report. The U.S yields further weakened as prices ascended at a faster pace compared with the European bonds. This made the euro lure attraction of investors prior the ECB meeting scheduled next week.

The European producer price manifested stronger figures, beating expectation which paved the way for a higher rate on the pair. The pair had broken out on the back of a bull flag formation which serves as a pause to refresh higher.

The prices increased by 1.1282 region just shy of 1.1299 close to November 8 highs. The next resistance target is found at the mark 1.1365 near the highs of August 2016. The support reached 1.1206 area around the 10-day moving average.

The momentum came in neutral while the MACD histogram printed nearby the zero-index level whereas the index appeared to be in a flat trajectory suggesting for a consolidation.

[AppleFX]

GBP/USD Fundamental Analysis: June 5, 2017

The GBP/USD pair exhibited a very weak trading action earlier this morning although this was kind of expected due to yesterday’s terror attacks in London. This recent slew of attacks within the region has increased the risks surrounding Britain and now that the snap elections are set to begin within a matter of days, the cable pair is expected to continue receiving pressure throughout the duration of today’s session as well as in the coming days leading up to the day of the UK snap elections.

The GBP/USD pair has been very weak during the past weeks as Theresa May had a hard time making sure that the results of the snap elections would come out in favor of her political inclinations. May had initially sparked the election in the hopes of getting a much better majority, and this initially seemed like a good move considering that the opposition bloc back then was very spotty and in shambles. But within the course of two months, May’s lead has been steadily decreasing during the past weeks and the market is now speculating that the Parliament might be hung in no time at all. However, there is still a possibility that May might be able to win the elections after all and could even win a small majority, although this is not enough for May to be able to establish her position in the international scene, especially when the time comes for her to start with the Brexit negotiations. This could ultimately be very bad for both May and the UK economy and this is why the GBP/USD pair has been very weak as of late, with pair being unable to go beyond 1.2900 points in spite of a relatively weak US employment report.

For today’s session, the UK economy will be releasing its services PMI data, but regardless of how this data comes out, the political events from the UK is expected to remain in the headlines, with the GBP/USD pair continuing to look very weak in the short-term period.

[AppleFX]

USD/CAD Fundamental Analysis: June 5, 2017

The USD/CAD pair went through a very restricted week of ranging and consolidation activity as the pair’s overall accumulated range amounted to a just a little more than 120 pips. This range is currently the tightest for the USD/CAD pair and this illustrates the intensity of the ongoing struggle between the pair’s bulls and bears. Now that the currency pair has already moved past 1.3500 points, this marks a shift in the trend of the currency pair especially since the USD/CAD pair has been recently unable to surpass 1.3500 points during the past two weeks, indicating that the pair’s bulls are struggling with regards to dominating the movement of the currency pair.

Thanks to the pair’s bulls, the USD/CAD pair has managed to prevent itself from falling any further as the bulls remain struggling against the bears in order to make sure that the currency pair does not fall hard and fast. The bulls have been helped in part by the recent drop in oil prices whose downfall was mostly due to a surge in production and inventory and has made sure that the Canadian dollar remains weak across the charts. However, the irony here is that one of the primary reasons behind the currency pair getting bogged down through 1.3500 points was the recent surge in oil prices, but now that oil prices have already dropped in value, the USD/CAD pair has reached a point of no return where there is no expected assistance coming from external factors. But since the Canadian economy has been showing signs of steady improvement during the past months, this steady uptrend in the country’s economy is expected to remain in effect at least during the short-term period.

For this week, the Canadian economy will be releasing its unemployment rates and employment change data, both of which are expected to give a clear depiction of the current status of the Canadian economy. If the employment report comes out as positive, then the USD/CAD pair could possibly make a move towards 1.3400 and could even move lower through the bottom rungs of its range.

[AppleFX]

EUR/USD Fundamental Analysis: June 5, 2017

The EUR/USD pair underwent a very volatile trading action last week after it was able to stick to certain resistance and support levels, thereby making last week a relatively painless week as far as the currency pair’s traders and investors are concerned. The buyers only had to choose the correct buys in order to gain profits as the EUR/USD pair’s uptrend was pretty much evident since it was able to maintain its hold on to certain selling and buying points.

The first half of last week’s trading session was a rather lackluster time for the EUR/USD pair, with the dominant market trend being the performance of the dollar as the market anticipation for the month-end flows increased by the day, wherein the market was generally expecting an influx of US data such as the NFP report. This then caused the EUR/USD pair to drop in terms of its value but since the 1.1100 points contained a lot of buys, the pair has managed to revert strongly against any quick drops in its value. As the second half of last week’s session commenced, this was marked by a transition into a new month and was characterized by several economic reports such as the ADP employment report, which impressed the market by coming in at a strong reading of 153,000, thereby increasing the chances of a positive NFP report, which would ultimately increase the possibility of a Fed rate hike this month. But the NFP fell short of its market expectations as well as the wages report, and this was more than enough for the EUR/USD pair to surge by over 70 pips and closed down last week’s session at its range highs located at 1.1280 points. ]

For this week’s session, there are no major news coming from the EU except the ECB press conference scheduled on Thursday. The market is instead expected to shift its focus towards the UK elections as this will have a significant impact on the standing of the euro. If Theresa May manages to win over a strong majority vote, then the euro could possibly drop a few points, although the bullish undertone for the EUR/USD pair is expected to remain intact at least for a few more days.

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