official Daily Market Analysis From Forexmart.eu

[Andrea FXMart]

 

GBP/USD Technical Analysis: July 27, 2017

 

The British pound against the U.S. dollar moved sideways in the beginning of the Wednesday session. There is sufficient support found at the 1.30 level which pushes the trend to the upside. Later on, it is possible for the market to break the current psychological levels with the FOMC announcement to be released in the afternoon. Nevertheless, the markets were quiet as they wait for any hints from the Federal Reserve.

 

If traders can maintain traders more than the 1.30 level, the GBP/USD pair could move higher towards 1.3125 level and even much higher. There are still buying opportunities on the lows in the market since the British pound became cheaper.

 

Buying lows in the market are suggested instead of selling until a breakdown occurs below the massive support level. Unless it reaches lower than 1.2950, it is alright to sell the pair. However, if it drops even much lower, it is possible to drop even much more that would change the trend when it happens.

 

Buyers are more aggressive and it would not take long before they return to the market. If the trend gaps in the upper region, it will most likely reach the 1.3450 level which is possible after some time. Many major events that would come out from politicians could affect the British currency. The uptrend will presumably to continue in the long-term. Also, the pullbacks could offer opportunities in the market at a cheaper level.

[Andrea FXMart]

 

AUD/USD Technical Analysis: July 28, 2017

 

The Australian dollar rallied in the beginning of Thursday session. There is sufficient resistance found at the 0.8050 level to reverse the trend and drop lower than the 0.80 level. The 0.7975 handle is being tested as the support level which was the former resistance level.

 

A pullback gives out a buying opportunity although this has been resistive previously. Yet, the market would not have an easy time to move higher. Although after some time, the pair would continue to move on the upper side as the U.S. dollar will proceed in a subdued manner.

 

As expected, the gold market will have an impact on the Australian currency.Hence, when it surges, the Aussie will follow. If it can break successfully more the 0.8065 handle, then the market will aim for 0.81 level above as the next target then eventually towards the 0.82 level.

 

There are opportunities in the volatility of the Australian dollar as it is a strong currency because of gold and the depreciation of the dollar for long-term. After some time, there will be more buyers for the Australian dollar and look for much higher levels.

 

There is a possibility for a rebound close to the 0.80 handle despite the long-term direction of the market is upward which includes the Australian dollar and not just gold. There has been a pause in the rally of the U.S. dollar that brings some noise in the market as it has been moving subtly over the long-term. There is a likelihood for buyers to return to the market.  

[Andrea FXMart]

 

EUR/GBP Technical Analysis: July 31, 2017

 

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

 

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

 

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

 

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

[Andrea FXMart]

 

GBP/USD Technical Analysis: August 2, 2017

 

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

 

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

 

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

 

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

[Andrea FXMart]

 

EUR/USD Technical Analysis: August 2, 2017

 

The European yields declined, even though the European stock markets acquired broad gains, hence this maintained the stability of the EURUSD pair.

 

The downward revision on the Eurozone manufacturing PMI put pressure on German yields, as the euro remained with an upright position and the growth rate of EMU Q2 GDP is steady at 0.6% quarter over quarter. While the unemployment figures in Germany fell which enable the ECB to manage the reduction of asset purchases next year.

 

In Europe, the strong euro holds over the 1.18 region against the USD will turn the cautious approach of Draghi against QE tapering, despite the prevailing strength of Q2 growth, the PMI numbers remain to present strong growth while the jobless figures resumed its decline.

 

The EUR/USD pair consolidated and generated an inside day which suggests indecision. The EU yields continue to buoy and the interest rate differential points towards a higher euro-dollar pair.

 

The support can be seen at 1.1689 level, close to the 10-day moving average. The resistance highlighted the 1.1845 mark near the peaks of July. The pair’s momentum hovered in the positive zone and the moving average convergence divergence (MACD) index prints in the black with an ascending trajectory driving through a higher exchange rate.

[Andrea FXMart]

 

GBP/USD Fundamental Analysis: August 3, 2017

 

The main focus for today will be on the sterling pound as there are an expected economic releases and other data from the United Kingdom for this day. We await for the UK inflation hearings along with the rate announcement of the Bank of England to be issued. Also, BOE Governor Mark Carney will conduct his speech, therefore these events would likely cause high volatility for the GBP/USD.

 

The central bank of England was hawkish during their last meeting which led few markets to think that rate hike is possible sooner or later. There are three BOE members who agreed for a rate increase which triggered confidence for some markets, however, this only accounts a small portion of the market because the majority still believes that the bank will maintain its benchmark.

 

This is considered a logical approach regarding the continuous financial circles of Britain which could be a turmoil caused by the Brexit procedures. Moreover, a lot of things remain unclear, particularly the results of the referendum process in determining if it will a soft or hard Brexit. Due to many uncertainties, it is absurd for the BOE to make an increase and most likely, they want to see first the effect of the Brexit negotiations prior making such decisions.

 

The pound-dollar resume to consolidate yesterday and the range near the highs of its range are expected for this very important day. In case that the BOE decided to kept rates steady, the Cable is anticipated for further correction. The 1.3250 level serves as the ceiling at this moment.

[Andrea FXMart]

 

EUR/USD Technical Analysis: August 4, 2017

 

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

 

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

 

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

[Andrea FXMart]

 

Longest Decline in UK Consumer Spending since 2013

 

British consumers lessened their expenditures for the third month in July, leading them into the worst decline in four years or longer. This also causes another economic impact at the beginning of the quarter.

 

According to a report published on Monday, IHS Markit and Visa said that the decline in spending was 0.8 percent year-on-year which appeared to be wide-ranging as the apparel, foods, household goods and transport suffered the hardest hit.

 

The downturn is compelled by consumers belt tightening because of the inflation rise over wage growth and shoppers’ concerns regarding the extensive outlook after the economic slowdown during the Q1 in 2017.

 

The negative report was issued after the Bank of England decided to lower its forecast for the economy. BOE Governor Mark Carney gave a warning about the uncertainty of Brexit that puts pressure towards businesses and households.

 

The consumer figures for July showed a 6 percent growth in spending on hotels, bars, and restaurants. The Markit mentioned that this may be somewhat relative to the expansion of  “staycations,” as the sterling pound weakened which makes overseas holiday become more costly.

[Andrea FXMart]

 

USD/JPY Technical Analysis: August 8, 2017

 

The U.S. dollar weakened slightly on the start of Monday session but was reversed to move in the upper channel. It might be difficult to challenge the 111 level but it is possible to break above it with the strong jobs data from the U.S. At the same time, the pair is highly reliant to 10-year bonds from both countries.

 

The interest rates are anticipated to rally in the bond markets since it seems that the Federal Reserve will be forced for a rate hike as of now. This would favor the U.S. dollar. Nevertheless, the Japanese yen is the choice in funding currency. The very low rates make it probable to extend gains with the next target at 112.50 level above which is appealing lately.

 

The pair continues to move lower where it still remains valuable for every drop in price. Besides the Japanese currency, the U.S. dollar is about to be behind of various currencies. The Canadian dollar has been slumped in the past few days which persists to be the situating. The bond market between Canada and the U.S. is also appealing.

 

The 110 level is being supportive which could proceed to move in the upside. In the past 4 months, the market tries to change the direction of the trend and it seems that it is getting stronger to move in the upside. Traders could wait for some months, those who are willing to wait.

[Andrea FXMart]

 

EUR/USD Fundamental Analysis: August 9, 2017

 

The markets may appear to be in a deep coma and traders seems to relax for awhile, however, there is something turned up that triggered their presence. The markets woke up from the slumber because of the recent data but did not cause a lot of movements. On Tuesday, the condition was different and this move built up in the past couple of days.

 

The recently released data is the JOLT employment figures which exceed its expectations and further boost the US dollar unexpectedly. This manages the pair to fall near 100 pips as it drops from the 1.18 level above towards the support region at 1.1720.

 

It was previously mentioned in the past few days that the 1.1720 support will indicate the time when it will be broken, as we expect for a deeper correction. Hence, this area was able to maintain the price but it seems to be under pressure in the near-term.

 

The global risk heightened due to threatening attacks by the North Korea while the United States warns the N.Korea about their possible counterattacks. With this, the gold and Japanese yen strengthened while the prices of other trading instruments were affected.

 

The euro-dollar pair rebounded from the 1.1720 mark to return and reach the highs at 1.1780. But this morning, the pair was seen to move in the lows due to an increase of risks worldwide.

Currently, the EURUSD experience lots of pressure due to investors and traders. The European leaders possibly felt that pinch of a stronger euro.

 

Ultimately, there is no major economic news from the eurozone or the US but volatility is predicted since yesterday which would likely dominate the markets this day, keeping the pair in the pressured area.

[Andrea FXMart]

 

GBP/USD Fundamental Analysis: August 10, 2017

 

The GBP/USD hovered around the tight range of 60 pips after breaking the significant support level at 1.3030. Due to the absence of some economic and fundamental indicators, the Cable was pushed through the consolidation and ranging period.

 

The pound-dollar pair remains to be sluggish and attempted to break back the weak support that became the resistance. This was immediately broken by a lot of selling on Wednesday. As of this writing, it currently trades under the 1.3000 mark.

 

We don’t expect any economic releases from the United Kingdom within this week, as the volatility and further actions needed to complete from last week.

 

The Bank of England announced for some growth and British inflation fears. The UK was strained to live with uncertainties due to Brexit procedures while traders should track down upcoming UK economic statistics in order to measure how does Britain deal with the EU exit.

Due to lack of fundamental and economic drivers in the market, the GBP/USD struggled in the past couple of days and the weakness of the Cable was clearly seen by everyone.

 

It is projected that the weakness will continue in the near-term when the British economic data came under renewed focus.

 

The United Kingdom was able to manage well in terms of economic indicators, however, the statistics became choppy previously. This triggered concerns about the impact of Brexit which begins to take place.

 

Ultimately, the manufacturing data from the United Kingdom was released with bulls that expect for strong results in order to raise the plunging Sterling pound. In addition to it, the US PPI data will be issued and should be watched carefully to assess whether the American data will resume recovering. Moreover, expect higher volatility for the GBPUSD this day.

[Andrea FXMart]

USD/JPY Technical Analysis: August 14, 2017

 

The U.S. dollar rebounded on Friday as it reached the 109 level which seems to be appealing to most traders. There is a high volatility for this currency pair with noises involved between North Korea and America. People are looking for safety currencies such as the Japanese yen to move forward.

 

There are various noises found at any moment which seems to persist. After some time, there will be more opportunities for long-term although sellers are predominantly taking over for short-term.

 

It is suggested to trade in small positions amid a highly volatile environment. However, if the price breaks higher than the 110 level which indicates the strengthening of the market that could reverse the trend and induce higher volume of purchases.

 

A pullback to the 105 level is possible since there is more support found in there. This would make trading more complicated and it is anticipated to have sudden fluctuations which could induce fear globally. Overall, volatility will be a big problem with the currency pair.

 

[Andrea FXMart]

 

GBP/USD Fundamental Analysis: August 18, 2017

 

The GBP/USD remained trading in a sluggish manner and another attempt to cut through the range lows was seen near the 1.2860 level. However, the Cable was able to survive again but due to a lot of rising attacks, the pair may not hold on too long before it breaks down and the sterling weaken.

 

The trading session on Thursday seems very choppy among various major pairs, as the greenbacks drove towards that course and also because of the release of Fed’s meeting minutes. The minutes came in slightly dovish which weakened the US dollar and triggered a round of dollar selling following the release. But on Thursday morning until the first half of the day, the USD managed to recover its strength which supported the reversal in the whole trend. This happened after issuing the minutes and the GBPUSD returned to its lows, poised to make a breakthrough.

 

Moreover, there are some talks about the resignation of Trump’s staffs and despite these false rumors, the dollar was pushed in the backseat. While the surge in global risk sentiment associated with the terrorist attack in Spain, further dragged the dollar towards the pressured area. With this, the pound-dollar pair recovered a little bit, but the Cable still trades around the lows of the range. Amid strong data from British retail sales, the pound bulls remain hopeless as the sluggish trading will keep on going.

 

Ultimately, there are no any major economic releases from the United States or Britain until the end of the day. Hence, consolidation is further expected but the weakening of the dollar was felt across the board. The GBPUSD is projected to be buoyant during the consolidative period in the near term.

[Andrea FXMart]

 

GBP/JPY Technical Analysis: August 23, 2017

 

The British pound against the Japanese yen surged at the beginning of the Tuesday session although there has been difficulty in the former uptrend line which has a breakout recently around the level of 141. Hereinafter, they have been moving in a bullish stance. The 140 level will most likely be the support level with a bit of consolidation with a negative tone.

 

Although the Japanese yen has been weaker during the trading session, the pound has been moving in a similar way that lessens the risk of the pair to collapse. There was a fresh, new low signals selling of the pair. If the pair breaks over the 141 handle, there would be a bullish sentiment.

 

The market is sensitive for a risk appetite which would induce the market reaction to the stock markets, commodities, and other markets. It won’t take long before the market left and if this persists to rise but there is still a risk with the Brexit process. The volatility will return to the market soon. Trades have to careful of the weakened market condition which could pose a problem in trading.

[Andrea FXMart]

 

EUR/USD Technical Analysis: August 24, 2017

 

The EUR/USD pair had a calm trading session on Wednesday. Soon after it climbed much higher with a bullish overall sentiment in the market. Overall, it is not surprising that the U.S. dollar is continuously sold. The manufacturing data from the European Union would not have any effect to the pair as it came out positively.

 

Considering the long-term charts, there is a bullish trend that is about to begin. Also, the ECB President Mario Draghi did not mention the value of the currency and it seems like that the central bank does not keep track of the value of the currency. If this is the case, the bullish tone of the pair will most likely continue especially if Janet Yellen gave off a slightly dovish hint on Friday.

 

The market will continue to buy on the lows which will significantly give more support. The 1.17 level positions as the support of the market and if the pair could maintain its level above the said level, the price could further go up. On the other hand, the 1.20 level gives off a significant resistance and an increase in momentum is already expected to reach the target level.  

 

Meanwhile, it is possible that the market will buy short-term dips to raise a bigger position since a breakout occurred recently above the consolidation in the past few years that could soar the price up towards 1.25 level. Long-term trades would support the euro and selling of the U.S. dollar. However, it would be best to wait and consider the whole situation if a breakdown lower than the 1.17 level occurs.

[Andrea FXMart]

 

USD/JPY Technical Analysis: August 25, 2017

 

The U.S. dollar paired against the Japanese yen rallied on Thursday session as it reached the 109.50 level. However, the event related to the random tweets of the president reversed the situation and people are anxious on the budget issues in the United States. This resulted in simple noise which happens every now and then and turned around at a faster rate. The most awaited speech from Janet Yellen in Jackson Hole which would give a hint the outlook of the Fed regarding the economy. A hawkish sentiment would support the dollar and push it much higher. However, if she gives a dovish tone instead, this pair would plunge lower.

[Andrea FXMart]

 

GBP/USD Fundamental Analysis: August 30, 2017

 

The pound-dollar pair followed a pattern made by the single European currency and closed the day unchanged despite the high level of volatility throughout the day. Yesterday morning, we witnessed the weakening of the dollar that helped the GBPUSD to drove above the region 1.2950. Later the day, the strength of the greens returned and the Cable corrected under the 1.2950 level and ended the day unchanged.

 

The London market was able to have its initial reaction regarding the remarks of Yellen and Draghi last Friday. According to expectations, their reactions are focused to the dollar selling across the board.

 

Yellen did not provide support for the dollar amid its sluggish stance, hence this signaled traders to sell the USD. This assisted the pair to reach the 1.2950 zone and further drove near 1.30, however, stalled due to heavy selling. It leads to pair’s correction which helped to touch the 1.2920 support region as of the moment.

 

As the month nearly ends, the month end currency flows is expected which could influence the sterling in the near-term. In respect to the ongoing negotiations of Brexit, risks are also anticipated to put pressure on the GBP. however, as the greenbacks continue to weaken, the Cable would likely have extra support to ascend to 1.3030 in the short term.

 

Ultimately, there is no scheduled major release from the United Kingdom for the rest of the day, except for the US ADP employment report and Preliminary GDP data. Both data has the potential to cause volatility for the GBP/USD and has the chance to push the pair touch the 1.30 mark.

[Andrea FXMart]

 

GBP/USD Technical Analysis: August 31, 2017

 

The British pound moved sideways on Wednesday session as it consolidated and moved inconsistently. In the long run, the British currency will persist its decline and the latest surge was mainly due to the U.S. dollar. Hence, it would be best to sell this pair for short-term rallies but choppiness should be anticipated because of volatility present in the market. This pair was seen to offer support lower than the 1.2850 region.

[Andrea FXMart]

 

EUR/USD Technical Analysis: September 4, 2017

 

The manufacturing data has exceeded predictions which countered the weak U.S. jobs data sustaining the range of the dollar on Friday prior to the long weekend holiday in the United States. The seasonally adjusted jobs data that propelled much lower expectations yet an increase of 156,000 was much more serious than anticipated. The European Central Bank speech implies that inflationary targets have not been attained that impedes the movement of the currency pair.

 

The euro against the U.S. dollar rose after the weakened U.S. jobs data but declined soon-after. It maintained an uptrend ahead of the support region close to the 10-day moving average at 1.1860. The resistance of the currency pair was set as the weekly highs at 1.2070 region. There is no momentum while the price rate is moving higher at a slower pace. Thus, the MACD histogram was almost zero-index level with a flat course that results to a consolidation.

[Andrea FXMart]

 

GBP/USD Technical Analysis: September 5, 2017

 

Primarily, the sterling moved sideways on Monday, however, drove downwards to find some support and in order to make a rebound. The United States is currently in a holiday to celebrate the Labor Day, hence, the trading volume will be heightened during the European session.

 

Moreover, the market is having some conflicting pressure while players lack confidence about the possible increase of the Fed interest rates for this year. However, there are various concerns regarding the British exit from the European Union.

 

It is possible that the market will continue its choppiness which suggests to better trade in small positions. We should search for some pullback while the market should push lower touching the 1.2850 in the longer term. The 1.30 region appeared to be really resistive but when the 1.3050 area will be broken, buyers would likely take the driver’s seat once again.

 

It is expected that the market will keep on having some noise, but there is also a possibility that the market is seeking for clarity which is hard to look for because of the increasing noise in the markets.

 

It should be noted that the liquidity will not raise until the following week, considering that majority of the traders are not present due to the holiday.