Re: Daily Market Analysis by ForexMart

[AppleFX]

USD/CAD Fundamental Analysis: June 6, 2017

The USD/CAD pair continues to exhibited a very tight price action as the pair’s bulls and bears continue to fight out for the control of the currency pair and is expected to remain as the pair’s dominant trend in the short-term period. The pair has been trapped in a very limited range ever since the currency pair managed to push forward past 1.3500 points with buyers dominating the 1.3400 trading range.

During the past few days, oil prices have remained stable, thereby decreasing the amount of leverage it gave to the Canadian dollar and was one of the reasons why the loonie was unable to take full advantage of the dollar weakness which was due to a series of dismal US employment reports last week. Oil prices has also continued to be very disappointing due to rising tensions in the oil-rich Middle Eastern countries and has subsequently diminished its support for the loonie. In spite of the pair making a headway towards 1.3460 for a short while, it was almost immediately met with several buys, causing the USD/CAD pair to retreat towards 1.3500 points, where it is expected to stay put at least in the coming days. The market is now preparing itself for the trading sessions on Thursday and Friday as the currency pair would most likely undergo a volatile trading session due to Comey’s testimony as well as the release of the Canadian employment report on Friday. This is why traders are advised to remain in the sidelines until such time that a break shows up on the pair’s range before inducing any kind of progress in their trades.

For today’s session, there are now major releases from both the US and the Canadian economy and the USD/CAD pair is expected to continue consolidating throughout the duration of today’s session.

[AppleFX]

GBP/JPY Technical Analysis: June 6, 2017


The British pound against the Japanese yen broke on the lower side during the Monday session which was upturned indicating bullishness in the trend. It is directed towards the 143 level and higher up that fills the gap. There is a robust resistance seen in the previous trades that makes the reversal unexpected. However, if the price is set higher, this would persist to an elevated level pointed to the 144 region.

It is anticipated to have volatility for this pair regardless of the next move since the market is in a “risk on” or “risk off” sentiment. Moreover, the British elections worsen the situation as it affected the British currency that brings unpredictability in the market until the election on Thursday. Other global economic concerns will also affect the trend.

Volatility is the current focal point of the market and if it gaps more than the 143 region, more buying opportunities will come out for the market. However, if the election polls showed conservatives leading in Britain, this push this pair aimed higher with chances to break higher than the 144 region then shift towards the 145 handle.

Traders should not expect that trading this pair would be easy that makes trades on small positions to be ideal for this pair or one could opt to wait in the sidelines as GBP/JPY is one of the pairs risky to position in the market.

[AppleFX]

EUR/USD Fundamental Analysis: June 7, 2017

EUR/USD traders entered into monitoring mode during the previous trading session as a slew of economic news releases are expected to become the dominant market trend this coming Thursday and Friday. A very choppy price action was also seen in the EUR/USD pair as the majority of traders and investors are waiting in the sidelines as part of their preparations for a heavy trading environment during the last two days of the week.

The EUR/USD pair in particular is having a very hard time with regards to advancing past 1.1300 points, with the currency pair stopping abruptly at 1.1283 points and was unable to make any more headway in spite of the dollar weakness. The drop in the USD’s value is being seen as more of a risk than an advantage since the dollar is apparently preparing itself for the onslaught of economic data this coming Thursday and Friday. For Thursday, the market will be reacting to the Comey statement, the UK snap elections, and the ECB press conference and this is why the market will be in for some major volatility surge. This is why what the market is undergoing right now is merely a prep for Thursday and it is recommended for currency traders to step away from the limelight and start making moves once the dust settles on Thursday.

For today’s session, there are no major releases from the US or the EU economy save for the US crude oil inventory data, and traders can expect a somewhat safe ranging and consolidation price action for the pair, with 1.1300 points as the designated price ceiling for the pair as of the moment.

[AppleFX]

GBP/USD Fundamental Analysis: June 7, 2017

The GBP/USD pair experienced a major correction during yesterday’s session as its previous gains were due to a reaction on the most recent opinion polls, which outlined a clear victory for UK PM Theresa May. However, these opinion polls were quickly forgotten by the market as the market shifted its focus on more immediate geopolitical events which could have an influence on the cable pair.

The opinion polls, although somewhat positive at first, had no lasting effect on the price action of the sterling pound and as such, the GBP/USD pair corrected its gains and is now back at 1.2900 points in spite of the dollar weakness as the pound had to deal with some problems of its own. The GBP is now under heavy downward pressure as the snap elections are set to commence this coming Thursday and since the majority of opinion polls are still giving off an ambiguous stance, the market is in turn unsure of what steps it should take next and this has put additional pressure on the sterling pound. In addition, the dollar is also relatively weak as of late since it will be reacting to Comey’s testimony set tomorrow, which falls on the same day as the snap elections. This is one of the reasons why traders refuse to make any clear moves on the GBP/USD pair and instead shift to a wait and watch mode until such time that all activity subsides and be safe enough for them to resume trading.

For today’s session, the US economy will be releasing its oil inventory data while there are no major releases coming from the UK economy. The GBP/USD pair is then expected to range and consolidate throughout today’s session as it preps for tomorrow’s polls.


GBP/USD Fundamental Analysis: June 7, 2017

The GBP/USD pair experienced a major correction during yesterday’s session as its previous gains were due to a reaction on the most recent opinion polls, which outlined a clear victory for UK PM Theresa May. However, these opinion polls were quickly forgotten by the market as the market shifted its focus on more immediate geopolitical events which could have an influence on the cable pair.

The opinion polls, although somewhat positive at first, had no lasting effect on the price action of the sterling pound and as such, the GBP/USD pair corrected its gains and is now back at 1.2900 points in spite of the dollar weakness as the pound had to deal with some problems of its own. The GBP is now under heavy downward pressure as the snap elections are set to commence this coming Thursday and since the majority of opinion polls are still giving off an ambiguous stance, the market is in turn unsure of what steps it should take next and this has put additional pressure on the sterling pound. In addition, the dollar is also relatively weak as of late since it will be reacting to Comey’s testimony set tomorrow, which falls on the same day as the snap elections. This is one of the reasons why traders refuse to make any clear moves on the GBP/USD pair and instead shift to a wait and watch mode until such time that all activity subsides and be safe enough for them to resume trading.

For today’s session, the US economy will be releasing its oil inventory data while there are no major releases coming from the UK economy. The GBP/USD pair is then expected to range and consolidate throughout today’s session as it preps for tomorrow’s polls.

[AppleFX]

USD/CAD Fundamental Analysis: June 7, 2017

The USD/CAD pair exhibited a ranging and consolidating price action throughout the duration of yesterday’s session as the market shifted into a monitoring mode as preparation for Super Thursday. The majority of market players are refusing to take any unprecedented positions in the market and this is why a choppy price action is being seen for the USD/CAD pair as well as for other major currency pairs.

The only positive note for the currency pair yesterday was the steady strengthening of the value of the CAD, which had bearish undertones as a result of a surge in oil prices and was even able to keep itself at its higher ranges. This rise in oil prices was mostly due to the recent standoff in the oil-rich Middle East which might potentially endanger oil production and has subsequently affected oil prices. This then contributed to an increase in the value of the CAD and has caused the USD/CAD pair to trade lower within the 1.3450 range. The currency pair is expected to continue trading within a very limited range, with sells situated at 1.3500 points and buys located at 1.3400 points. If the currency pair manages to make a break and veer away from its current price action, then this might induce some major movements in the pair and the market will be waiting to see what happens in the next few days.

For today’s session, the US will be releasing its oil inventory data while there are no major releases from the Canadian economy. The USD/CAD pair is most likely to undergo a limited consolidation for today’s session.

[AppleFX]

NZD/USD Technical Analysis: June 7, 2017

The NZDUSD rallied amid trades on Tuesday and broke the level on top of 0.7150 smoothly. The Kiwi dollar continued to search for buyers on dips and tend to handle some pullback as an opportunity to increase rate.

The market tried to touch the region above 0.72, en route 0.75 afterwards. As shown in the chart, the area around 0.71 handle provides a lot of support and regarded to be the floor of the market in the near-term uptrend. The commodity space continues to weigh on the market and the NZD seems to be the “barometer” towards the overall sentiment of futures trading. Watch closely for the commodity because it could possibly show the way.

It could be a good move to buy dips moving forward because it suits the current status of the New Zealand currency. Selling remains impossible as far as we breach under the 0.71 mark. A successful break down prompts the market to reach the range below 0.7050 which is very supportive previously, along with the 0.70 region. In any case, the market remains to be volatile, however, the moving averages came in reliable, particularly the 48-hour MA shown in green color, hence it should offer further buying opportunities.

The volatility driven market persists, but the late impulsivity indicates that buyers begin to develop more confident as it moves ahead. Moreover, the dips will provide value which is an advantage to market participants.

[AppleFX]

GBP/USD Technical Analysis: June 7, 2017

The GBPUSD had attempted to rally yesterday, however, retreated to the level 1.2950 to return underneath the 1.29 handle. In the past few sessions, the market appeared to have a little bit of overall bullish pressure, waiting for the results of UK elections expected tomorrow. In this case, the market will probably experience choppiness and unprepared to conduct a significant move yet. Short-term volatility is predicted along with some choppy spots but a general ascending momentum should also be anticipated. It does not mean that a pull cannot be accomplished, it only implies that longer-term charts and the range below 1.2750 should offer massive support that will surely lure the attention of the majority of market participants.

After the session on Friday, the long-term outlook for the pair shall be available as it could be very difficult from this moment and the next.

Buying the dips remains to be the best option for the Cable but the dips showed to be somewhat steep. You should have got small positions as of now and after the election results in order to acquire lesser damage that might suddenly arise.

Markets have lots of speculation regarding the election decision, therefore a cool level head should be maintained as this is crucial for the following sessions.

In the longer-term, the pair might break the 1.3050 mark as it allows the market move higher freely, or maybe reach its long-term target found at the region 1.3450.

[AppleFX]

EUR/USD Technical Analysis: June 7, 2017

The EURUSD aimed to make a rally during Tuesday session but look for a strong resistance around 1.1280 region to make a reversal. Then, rebounded through the 1.1240 mark.

Meanwhile, the market remains to be bullish and attempted to front run the monetary policy statement of the European Central Bank.

The ability to break out in the upside enable the market to move towards the area on top of 1.13. The 1.15 range is the top of the latest consolidation seen in the EUR/USD for the past years.

Moreover, the market might experience difficulty in breaking above the mentioned range, however, series of attempt were made to get through the area and identify its capacity to hold on.

Buying in the dips resumes progressing forward despite anticipated noise.

As the Britain will leave the European Union, there is a chance that some statements will weigh against Euro’s value. Either way, the interest rate hikes from the United States may catch more attention.

A breakout to the upside is possible while the 1.12 market must be the “floor” in this market.

[AppleFX]

USD/CAD Technical Analysis: June 7, 2017

The U.S. dollar against the Canadian dollar declined in the early Tuesday session. Although, there is a sufficient support found at 1.3450 level to recover. Later on, the resistance level was found at 1.3490 and move to and fro within the trading range. This is already expected as the market waits for the release of Crude oil inventories later this day. This has a direct influence on USD/CAD pair.

The oil market has a big influence with this pair which will mirror the movement of oil price fluctuations. It seems that the crude oil market will persist with a bearish tone for long-term. Later on, it is anticipated for this pair to surge higher but will most likely result to extreme choppiness in the market. Overall, the trend is predicted to be bullish for long-term positions.

The 1.35 level is becoming a significant level and a break over this would move the psychological level towards the 1.36 mark which is also much more relevant for long-term traders. It may be best to put on hold shorting this pair until the price breaks at 1.3400 region below. This would indicate a bearish tone for the market.

There is a lot of noise found in the pair because of the OPEC production cut and concern regarding the Gulf states particularly between Qatar and Saudi Arabia divisive issues. These contribute to the bearish tone on crude oil that opens a chance for a rally intermittently.

[AppleFX]

USD/JPY Technical Analysis: June 7, 2017

The U.S. dollar was behind of the Japanese yen during the Tuesday session. The USD/JPY pair broke lower than the 110 region which makes weaker to further decline. On the other hand, the 110 mark is being resistive. A move lower towards the 108/ region is the next target because of 61.8% Fibonacci retracement level and a whole number that offers significant level.

In the current condition of the market, it is better to sell this pair, especially if the 110 level and below is sustained. Also, market should be careful of volatility with the presence of bearish pressure as the U.S. dollar depreciates

More traders could play on the safe side with the ongoing tension between Saudi Arabia and Qatar. There is a somehow a pressure underneath and entails a “risk off” in trading. A move higher than the 110.50 level would counter the negativity in the market that would push the trend to go higher.

Overall, traders should expect high volatility. It may be difficult to bring the price higher with the strong resistance level while the 108 region is a significant level that traders cannot ignore following a rollover during the Tuesday session. If the price breaks lower than 108 region, then this would propel the price downhill in the next trading sessions.

[AppleFX]

AUD/USD Technical Analysis: June 7, 2017

The Australian dollar against the U.S. dollar broke the 0.75 resistance level during Tuesday session. Although, this was reversed with signs of support in the lower channel being tested again which would most likely go higher.

The price consolidation lower than the 0.75 level is being supportive that makes buying lows as a wise move in this pair. The support moves until 0.7450 region and it would be best to wait until it breaks lower before selling this pair.

The gold market attempts to break higher during the day of the trading session which would have an effect to the Aussie. When the gold rises and breaks higher than the $1300 level, it would give a bullish sentiment in the market and could trigger to move higher. Moreover, it seems that the market has changed its focus on Aussie where formerly the New Zealand dollar outpaces it in the market.

The GDP data from Australia to be released today would have an impact to this pair. Nevertheless, buyers are dominating the market.

It is best to wait for the price to break lower than the 0.7450 region before shorting this pair. Despite the volatility in the market, the positive momentum remains positive in the succeeding trading sessions. However, the impulsiveness of the market in the past few days has slowed down the rate of the market.

[AppleFX]

EUR/USD Fundamental Analysis: June 8, 2017

The EUR/USD pair exhibited a very intermittent trading action within a very limited range, and although the currency pair had a single clear move amidst the haze of its incessant ranging and consolidation, the market chose to interpret the currency pair’s movement as very choppy ahead of Super Thursday. Although the EUR/USD pair did manage to move towards the bottom rungs of 1.2200 points, it was almost immediately met with large-scale buying, causing the pair to retreat towards over 1.1250 where it is currently located.

This downtrend in the EUR/USD pair was mostly due to reports that Draghi could possibly make amendments to the central bank’s inflation targets but was immediately reversed after another report came out which hinted at Draghi being very hawkish with regards to overall growth. These kinds of speculations are usually expected during a very big trading day like today, although the real deal is expected to happen during today’s trading session. The UK snap elections is one of the highlights of today’s session, and although the Conservatives seem to have the upper hand as of the moment, the essential factor here would be the margin of victory and this will have an effect on the value of the euro. Next up is the ECB rate announcement, wherein the central bank is expected to maintain its rates, which will be followed by the ECB’s press conference where the market will be closely monitoring whether Draghi’s statement will be hawkish or otherwise. James Comey’s testimony is also another thing to watch today as this will reveal whether Trump had any involvement with the Russian probe which could cause a drop in the USD. The 1.1300 point range has been the pair’s key level for the past weeks and due to repeated attempts and failures of breaking through this range, a target of 1.1500 could be easily reached if the pair would be able to surpass 1.1300 points.

Due to several events happening today, the market is expected to be highly volatile and traders are advised to stay away from the sidelines first and wait for all the fanfare to subside before making any trades.

[AppleFX]

GBP/USD Fundamental Analysis: June 8, 2017

The GBP/USD pair chose to remain cautious and remain within the sidelines during yesterday’s session, although what should excite the pair’s bulls more is that the cable pair was able to stay afloat over its critical support range of 1.2900 points throughout yesterday. Although the pair momentarily dipped at just under this range, it was immediately met with a lot of buying and this caused the pair to return to its original range and is now trading at just above 1.2950 points ahead of Super Thursday.

The UK snap elections is set to commence today and while several opinion polls paint a pretty picture as far as the Conservatives are concerned, the margin of victory is actually the most important part of the polls. Anything less than a widely-spaced victory would be considered as a major failure for Theresa May as this could prove all her efforts to be futile and might have a negative effect on the status of the sterling pound. But then again, this will all boil down to just how big of a majority May will be able to garner at the end of the elections. A bigger majority would be more beneficial for the pound and this will then dictate the price action of the pound in the short term. The 1.3000 point-range of the GBP/USD pair has been a very critical range for the pair for the longest time, and repeated attempts to go past this range will be a formidable barrier before the pair can advance towards 1.3400 points. If the pound becomes bearish, then this could cause the pair to drop towards 1.2750 points and even 1.2500 points depending on how negative the results of the polls are for May.

In addition to all of this, Comey will also be making his testimony today and this is expected to put more downward pressure on the dollar, although if Comey refuses to indict Trump, then this could serve as a breather for the USD. All in all, this day is expected to be a very volatile trading day for the GBP/USD pair.

[AppleFX]

EUR/USD Technical Analysis: June 8, 2017

The EURUSD edged lower, however, bounced off from Wednesday’s support prior the meeting of the European Central Bank scheduled tomorrow along with the leak regarding ECB will lower down inflation predictions.

Moreover, the bund yields decline causing the single European currency to become unattractive and yet traders raise concerns with concerns to the forward guidance of the bank as this could lead the pair to a higher stance.

Additionally, the United Kingdom would likely do polling considering the presidential race tightened significantly but decreased by 18 points roughly because PM Theresa May had announced a snap general election. The pull out made by May would likely result to another hung parliament bringing a chaotic Brexit.

The pair rebounded at 1.221 support close to the 10-day moving average. While resistance highlighted the 1.1284 region around the weekly highs. The next aim for resistance is the level 1.1299 near the highs of November 8.

Momentum appeared to be neutral considering the moving average convergence divergence (MACD) to print within the zero-index level. The histogram is positioned also close to zero with a flat trajectory which suggest for further consolidation. The relative strength index (RSI) showed a neutral stance as it prints at 64 found on the higher end of the neutral range.

[AppleFX]

USD/CAD Fundamental Analysis: June 8, 2017

The USD/CAD pair had a bullish trading action during yesterday’s session after the pair struggled to go beyond its critical resistance range located at the 1.3500-1.3530 range. But so far, this region has managed somewhat to escape the wrath of the pair’s bulls. But now that there are several important economic events lined up for today’s session, the USD/CAD pair could go in either direction which makes trading generally unsafe at least for today.

As of the moment, the USD/CAD pair is trading at just over 1.3500 points as the market is preparing itself for the slew of geopolitical events happening within the day. The surge in the pair’s value during the previous session was mostly due to a drop in oil prices after the US inventory data released yesterday showed a significant inventory progression paired with ambivalent expectations. This means that oil continues to be sold off while inventory and production remain at its range highs, which is pretty bad news for the loonie. This caused the USD/CAD pair to exceed 1.3500 points. However, the pair’s bears managed to redeem themselves via a selloff at the 1.3530 trading range which has stemmed any upward move in the currency pair at least for now. Now that oil prices are expected to remain weak in the coming days, the Canadian dollar would possibly remain under pressure, although a speaking engagement from Poloz and the release of Canadian employment data today might help the CAD to improve its outlook. The Comey testimony will also determine the short-term price action for the USD, and it seems that the market is in for a very interesting trading day today.

Aside from the BoC speech and the release of the Canadian employment data, there are no expected news from the Canadian economy while other geopolitical events within the international sphere are not expected to have any significant effect on the USD/CAD pair. However, traders are still strongly advised against making any active trades today and instead wait out the events before engaging in any trade decisions.

[AppleFX]

NZD/USD Technical Analysis: June 8, 2017

The New Zealand dollar dropped in the beginning of Wednesday session. There is a sufficient support found in the 24-hour EMA in the hourly chart sufficient to reverse the trend to move higher. It seems that the pair would try to reach the 0.72 region and above. A breakout would be the best deal as this makes the start of buying again similar with staying in the lows and how long can it be maintained on yesterday trading.

The pair could further rise if the commodity market, regardless of its type, steadies as it gains strength. It could be the CRB or the ETF outside of the U.S. that are still part of the commodity market as a whole.

Buying on the lows is still ideal for this pair despite its breakdown during the Wednesday session. The 0.7150 is found to be supportive especially the 0.71 handle. Hence, it won’t be long before the buyers dominate the market again considering its value when retreated to lower levels.

Consequently, there will be volatility seen in the trend from time to time which is an opportunity for bulls waiting for a chance to sell this pair when the Kiwi recovers.

[AppleFX]

GBP/USD Technical Analysis: June 9, 2017

The British currency weakened throughout Thursday’s session because the Parliament election became the center of interest. As of this writing, the Conservative Party appeared to take a few seats, so expect that the market will start to solidify gradually. Moreover, the 1.29 handle down seems supportive and a rebound from the market is not a surprise at all.

The market are trailing within the uptrend channel but the result from the election is not yet released, therefore there is a tendency for it to change in haste. It further preferred to continue buying on dips as we go searching for the area above 1.3050 which is said to be resistive.

A break on top of it will move the market near 1.3450 region which could be the target in the longer-term. This will kept intact unless a massive state from the election came in. nevertheless, it does not necessarily mean that there is a simple way to move there, hence this might be the way towards a longer-term position. Having said that, buy on the dips will continue and lots of in and out trading will be recognized over the following weeks.

A breakdown beneath the 1.29 mark won’t indicates a selling position as there is much support on the diverging levels down through the 1.2750 range.

Lastly, the market contains an upward bias and the course will remain to be driven by headlines relative to what was discussed in the Brexit referendum. This could be a tough one and buyers could possibly take an upper hand.

[AppleFX]

USD/CAD Fundamental Analysis: June 9, 2017

The events happened yesterday unexpectedly wrought a slight impact against the USD/CAD, as well as to other currency pairs. However, there are predictions that it would be an explosive day yesterday due to incidents lined up while traders work late at night to secure a safe position and to keep their trades well but everything turned out to be less impressive and unexciting.

The said events are as follows; the decision of ECB to hold its rates paired with the announcement on inflation targets and increasing growth outlook, though it is obviously has nothing to do with the pair. Next is the testimony of Comey after he accused US President Trump with lots of things.

These scenarios were unable to move the dollar and any movement only indicates an insignificant strengthening of the greens that lead the USDCAD near 1.35.

In relation to the Canadian dollar, BOC Governor Poloz delivered a speech expressing his delight about the current condition of their economy. He also stated that he was comfortable regarding the price trend in the housing industry. The neutral tone strike by Poloz reflected towards the commodity-linked pair which continuously trades in a steady and unspecified direction.

Later this day, the Canadian employment figures is anticipated to be release that would likely cause volatility. If the report showed a stronger result, it would help the pair to reach the lows of its tight range close to the 1.3450 level.

[AppleFX]

EUR/USD Technical Analysis: June 9, 2017

The EURUSD drove downwards as the European Central Bank (ECB) decided to maintain the interest rates on a steady pace coupled with dropped easing bias. This further took a neutral position with regards the way they will see the monetary policy.

The schedule for quantitative easing remained unchanged while rates should be expected to retain its recent levels as reflected in the transcripts.

The pair moved near the support shown at 1.1220 mark that lies around the 10-day moving average which currently serves as the resistance in the near-term. Further resistance sits at 1.1285 region close to the weekly highs. An ascending sloping trendline is found at 1.1140 area. Meanwhile, the momentum turned towards the negative territory and the moving average convergence divergence (MACD) produced a crossover signal to sell prompted by the intersection of the spread under the 9-day moving average. The histogram shifted from positive en route the negative grounds and confirmed a sell signal.

[AppleFX]

AUD/USD Technical Analysis: June 9, 2017

The Australian dollar against the U.S. dollar performed well during the Thursday session. It seems that the market will roll over from here. There is a descending triangle formed on the hourly chart. If the price breaks down, then the trend would go down towards 0.75 and below. This would attract buyers to return in the market.

Another possible option is a break over the 0.7560 region, this would induce the price to break in in the upper channel. Moreover, the price is trying to break as gold market has an effect on the Australian dollar while currently, the market is on the lie lows and quite inactive.

For long-term, the trend gives off a bullish tone that keeps the Aussie market to keep from falling apart anytime. The GDP data is also stronger than expected that supports the currency pair.

Traders who like to buy in lows have to be patient. The market will persist to have choppiness directed upward. One could opt to place orders slowly since there is a lot of noise found in the chart.

The copper market was seen to move in uphill during the day. It is important to the Australia as exporters throughout Asia which would most likely affect the long-term rates. Hence, it may not be wise to sell this pair for now.

[AppleFX]

EUR/GBP Technical Analysis: June 9, 2017

Traders encountered high volatility during the Thursday session due to the major events that affected both currencies for the day. One is the U.K. Parliamentary election and the other is the ECB interest rate decision about to be discussed. Besides the decision alone, other comments during the meeting would be equally significant especially about the topics of quantitative easing.

Currently, it seems that the British pound is leading against the British pound which is not surprising because of the election and it looks like the Conservative is dominating the trend.

It seems that the market will continue to have high volatility as the market focuses on the headlines. With the ongoing Brexit, it is not surprising to have volatility in the market which will most likely continue to affect the pair every now and then. It might need a few days to soothe the market to manage real money in here. As of now, the trend is currently moving towards the 0.86 level for short-term.

It is too early to tell which the direction this pair would go and a blank guess could be disastrous as a single move is significant for a short period of time. Let us hope that the market will settle down come Monday trading session.

[AppleFX]

GBP/JPY Technical Analysis: June 9, 2017

The British pound paired against the Japanese yen had a volatile session during the Thursday session. This is not surprising because of the U.K. parliamentary elections. Although, traders are not sure what is the general attitude of the market regarding Brexit leaving uncertainty in investors.

Towards the end of the day, the pair rallies forward with 61.8% Fibonacci retracement level close to the 142.75 handle. Low levels have been higher which could continue to go up. The 143 region is starting to be strongly resistive and if the market is successful in breaking this level, the price could move higher. As of now, the market is still in consolidation.

However, if the price fell down to the 142 handle, there are more buyers interested in this pair. If the market is successful to break out in the upper channel, it will suggest a “risk on/off” sentiment which is a common reaction here. Traders should be cautious to avoid losses since they could incur bigger losses if not careful. Same goes for the USD/JPY pair and position in smaller trades which is relevant for this pair.

Nevertheless, it is also a good move to buy the pair for long-term but still with some caution before posting large orders since the market is still unstable. It is safer to wait until next week or after the results of U.K. election.

[AppleFX]

EUR/USD Technical Analysis: June 13, 2017

The European Central Bank decided to stabilize the apple cart and did not talk about the withdrawal of Quantitative Easing turning the focus towards the talks regarding Brexit and politics. Italian elections were delayed which helped yields from Italy to decline on the back of an extensive narrowing of spreads followed by the dovish remarks pronounced by M. Draghi. However, lots of political challenges remain in the future.

The anti-European forces appeared to be inactive while in Catalonia, Spain threatens the stability of the Spanish country due to the independence referendum planned for October 1.

The debt relief of Greece continue to hang in the Euro region and this is the expected major topic in the EU meeting scheduled on Thursday.

The EURUSD tried to move higher but failed to reacquire its previous resistance found at 1.1227 level close to the 10-day moving average.

The exchange rate indicates the second day of the Doji formation that further shows uncertainties where the close and open levels are in the same range.

Moreover, the pair seems to generate a head and shoulder reversal pattern which starts to produce the right shoulder followed by the left and lastly the head which resistance region entered the 1.1285 area.

Prices in the previous weeks failed to break 1.1299 mark seen around the November 8 highs. The major’s near-term support holds 1.1109 near the lows of May 29.

The momentum became negative since the moving average convergence divergence (MACD) develops a sell signal to take a crossover. It emerged because the spread crosses underneath the 9-day exponential moving average. The histogram shifted to negative grounds from the positive territory establishing a sell signal. The index also prints in the read paired with a descending trajectory that points towards a lower rate of the EUR/USD.

[AppleFX]

GBP/USD Technical Analysis: June 13, 2017

The British currency has an insignificant performance during Monday opening as the Europeans came back from behind. There is a gapped in the level 1.2750 and broke down towards the 1.2650 region. The market persists to show a massive bullish pressure considering that uncertainties wrought from the election will probably influence the sterling in general.

With this, the rallies could possibly provide some selling opportunities, however, a break on top of 1.28 region signals a bullish stance. And the market will move near above the 1.29 handle. Volatility is highly expected because of the trends influenced by headlines.

The sell rallies will continue on short-term charts which give indicators of exhaustion.

In case the bearish pressure remains, the market will come under 1.25 handle and keep on struggling because of indecisions on the United Kingdom along with the interest rate hikes to be implemented by the United States later this year

There are few reasons that GBPUSD will keep to struggle and decline. A slice over 1.28 handle will favor for a buying position.

[AppleFX]

USD/CAD Technical Analysis: June 13, 2017

A negative sentiment presides the market especially for the Canadian dollar and U.S. dollar pair on Monday session. Although the Canadian dollar is gaining strength because of stronger-than-expected employment data last in the previous week. However, the market has to be mindful of the oil market which is not performing well. It is not far from happening that traders will sell this soon.

The price trend is near to the base of the consolidation area instead of being on top. It is highly possible for the trend to remain in consolidation as how it has been in the past few days. Higher than the 1.3550 region serves as a resistance level but it won’t take long before the market breaks it especially if the oil market spiraled down.

It might not be advisable to sell this pair unless the pair breaks lower than the said 1.3350 region which is strongly supportive, followed by a rally due to the oil market. However, this could not happen and will most likely climb higher instead. Although, we could not tell if this will stop and persist after the breakout.

There is high volatility in the market but it seems that the trend will not favor the buyers since there is strong support found below. Moreover, it won’t be too long when the oil market plunge down which continue to put pressure on the market.

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