USD/CAD Fundamental Analysis: December 29, 2016

    The USD/CAD pair continued to trade in an upward direction due to substantial support coming from the USD, which was basically the market’s theme during yesterday’s trading session. The currency pair was able to maintain its buoyancy in spite of the recent surge in oil prices. Market speculators are now stating that oil prices could be well on its way towards reaching its optimum price and once oil prices stop going in an upward direction, then this could put more pressure on the Canadian dollar, thereby inducing a strong uptrend on the USD/CAD pair.

    The USD experienced a short correction during yesterday’s session after the US home sales data came in at a disappointing reading of -2.5% which fell short of initial market expectations of 0.5%. Luckily, the market is now shifting its focus on the Fed’s rate hikes this 2017, particularly the pricing of these rate hikes. The strength of the USD is very evident as of late, since the lack of trading and relatively low market liquidity was unable to mask the dollar’s strong stance, as well as the CAD’s pointed weakness.

    For today’s trading session, there are no major economic data scheduled to be released from Canada, while the US is expected to release its weekly oil inventory data. Since the market is relatively thin due to the holiday season, expect an added consolidation for the USD/CAD with a bullish undertone.

EUR/GBP Technical Analysis: January 3, 2017

The pair EUR/GBP declined last Friday and has been carried on for quite some time. There’s quite a resistance above the psychological level on the direction towards the 0.87 level that signals an opportunity for selling. The market is trying to move the levels further downward on the way to the next target at 0.83 handle, With the strong resistance for this pair, one way to trade this pair is to sell it moving along the surge on its short-term charts that continues to go downward.

EUR/JPY Technical Analysis: January 3, 2017

The EUR/JPY had an initial rally on Friday, however, shifted to another direction and formed an exhaustive candle logically. The pair was unable to break out through the upside and continued to consolidate on its current place. Meanwhile support level hovered in a lower position in order to maintain the market out of debt and any other difficulty. The price floor of the market settled near the 120 region. The next potential target is 125 mark, favoring a higher level against longer-term trends. Selling interest seems little no importance as of this writing.

GBP/USD Fundamental Analysis: January 3, 2017

The pair GBP/USD has been moving softly and remains resilient despite the appreciation of U.S. dollar since yesterday. This was brought by closing of London market same with the New York market that causing the low liquidity and weak volatility of the pair. Since today is the opening again, it is expected for the pair to gain volatility and waiting for hints on what will happen to the short term trend.

The U.S. dollar surged in the early weeks of December since the announcement of the Fed rate hike but a few correction were seen as the days advanced near the holidays. This pushed the pair to go lower towards the 1.2400 level predominant in thin market but it is expected that this will only occur for a short period of time. Since it is after holidays, then there will be high liquidity that guarantees the next moves compared to how it was 2 weeks ago. 

The Manufacturing PMI data from U.K. will be announced today that starts this week rich in data while the market awaits if the trend will continued to be supported by U.K. keep posting positive results in the midst of Brexit preparation. However, the surge of dollar may continue for some time while pound weakens. Hence, any form of rebound for the pair signals an opportunity for short-term position.

EUR/USD Fundamental Analysis: January 4, 2017

    As the market’s overall volatility and liquidity returned yesterday following the holiday season, the USD once again exhibited its strength across the board. The strength of the currency was further augmented by the strong economic data which was released from the US. The US Manufacturing PMI data came in yesterday and showed a positive reading of 54.7, which just evident of the US economy’s recently positive economic data. If the nation continues to clock in positive economic sentiments, then this could further cement the chances of more frequent rate hikes from the Federal Reserve this year, and could also lead to faster hike pricing as well.

    As a result, the EUR/USD pair plummeted through 1.0400 points and even surpassed its monthly lows last December for a short duration but eventually recovered during the opening of the European trading session and is currently hovering within the 1.0400 trading range. Market players are expecting the USD’s strength to be felt across the market for today, and if the EUR/USD could manage to break through 1.0400 points, then this could lead to the pair going lower further and possibly reaching 1.0300 points.

    For today’s session, there are no major economic data coming from both the European Union and US and the market is most likely to be dominated by the onslaught of the returning of traders into the market, and any reversion in the EUR/USD should be seen by trades as a short-term opportunity.

NZD/USD Technical Analysis: January 4, 2017

The New Zealand currency had recovered compared to its American counterpart after the data release from China's manufacturing Purchasing Managers Index. Meanwhile, the pair established its recovery during the early trades yesterday in spite of the dollar’s strengthening across the board.

The NZD plunged through an upward trend and beat the 0.6950 level in the middle session of Asian trading. Nevertheless, the upswing that last overnight tried to hold back below the 0.6950 hurdle where the NZD/USD found a renewed selling interest. Moreover, the pair rebounded from the level amid the post-EU open and continued towards the 0.6900 support.
The 4-hour chart showed the price pushed the 50-EMA upwards in the morning trades. The pair was unable to expand its growth and further entered the 50-day moving averages before the outset of the North American session. The 200-EMA together with the 100-EMA sustained its bearish signal and the 50-EMA established a neutral stance. Resistance took the 0.6950 level, support approached the 0.6900 area. The MACD histogram traded on the downside. While the RSI oscillator lies in the neutral zone after it departed in the overvalued readings.

A bearish sentiment ruled on Tuesday. It is highly anticipated that the currency pair’s next target is 0.6900. In case the NZDUSD surpasses the initial target, the price is possible to move ahead to the 0.6850 region.

USD/CAD Technical Analysis: January  5, 2017

The positive sentiment of the oil market yesterday brought favorable impact on commodity currencies including the Canadian dollar.

The U.S dollar recovered in the Asian hours and slowed down within the 1.3470 range when the commodity-linked pair move towards fresh offers as it continued to fell under the 1.3400 support during the onset of EU trades.

Sellers were able to resume their gains amid the European session and pointed to the 1.3260 region. The downward pressure weakened near the 1.3300 while the price made a reversal around the aforesaid level. The price further broke the 200 and 100-EMAs in a descending manner as shown in the 4-hour chart. The 100 and 50-EMAs maneuvered towards a higher position while the 200-EMA is trending neutral. Resistance took the 1.3400 level, support highlighted the 1.3330 mark.

MACD indicator declined which confirmed strength for the sellers. RSI kept intact around the oversold zone.

In case the price had directed below the 1.3330 region, it will open an opportunity for the sellers to continue a short-term downward trend. The next probable target of the sellers are the 1.3190 and 1.3260 marks. The USD/CAD is able to bounce off few of its losses if it moves back on top of the 1.3330.

GBP/USD Fundamental Analysis: January 5, 2017

    The GBP/USD significantly increased in value during the previous trading session after the USD dropped following the release of the latest FOMC meeting minutes. The market was somewhat docile during the rest of yesterday’s session but immediately picked up after the release of the minutes during the North American session yesterday, and has caused the USD to undergo corrections across the board.

However, the reaction of the GBP/USD pair to this phenomenon is somewhat docile compared to other USD-related currency pairs, and this is expected to keep the bulls on their toes. Initially, the GBP/USD pair was expected to rise exponentially since the UK construction PMI data clocked in a highly positive reading and exceeded its market expectations of 54.2, and the FOMC minutes lacked the expected hawkishness from the market. But the reason why this currency pair’s growth was significantly limited is that the various risks and uncertainties surrounding the Brexit process continues to dog a lot of traders due to the general confusion within this issue. This is why a number of speculators are saying that the GBP/USD would be receiving the shorter end of the stick once the USD regains its strength.

Although the UK is not expected to release any economic data for today, the US will be releasing a number of important economic data along with the highly essential NFP report, which is expected to determine the overall market sentiment for the rest of the month. If these set of data comes out as positive, then the USD could possibly rebound and could be sustained until the end of January.

EUR/USD Fundamental Analysis: January 5, 2017

    The USD has been exhibiting corrections across the market during the start of today’s trading session, causing the EUR/USD pair to break through 1.0500 before eventually settling at 1.0525 points, with the outlook for the currency pair looking generally positive for today’s session. The market is expected to go through a lot of market volatility during the next few days since there are a number of major economic news releases set to be released in the coming days. However, it is still unclear whether the USD would be able to sustain its corrections in the next few days.

    Since there were no economic data released during the first few hours of the previous trading session, the market has shifted its focus on the minutes of the FOMC meeting. Once the minutes were released, however, the USD sustained damages since the minutes did not have any clear hawkish stances. This has caused the EUR/USD to hit 1.0500 and then went even lower as the USD quickly recovered. The currency pair has since then been regaining its footing after the USD lost some of its strength.

    For today’s trading session, the major economic news releases include the ADP Non-Farm Employment Change data, a precursor to the NFP data which is set to be released during tomorrow’s trading session. The Unemployment Claims data as well as the Non-Manufacturing PMI data will be closely monitored by the majority of market players, since these are expected to continue the generally positive economic trend seen in the US lately. A positive reading from this particular set of data could also become determinants of whether the next interest rate hike from Fed would come earlier, therefore increasing the frequency of hikes. However, if the data comes out as negative, then the USD could be subject to more corrections prior to the release of the NFP economic data.

GBP/USD Technical Analysis: January 9, 2017

There is no major economic news anticipated in the United Kingdom last Friday. While the data from U.S affected the market as traders awaits for the figures of trade balance and labor data.

After it reached the 1.2430 level in the Asian session, the GBP/USD weakened and shifted downside. The British currency returned to the support region 1.2400 where it met a stable support during the morning trades.

The cable pair extremely toggles in a narrow range amid EU session waiting for a renewed stimulus. Furthermore, a selling interest arises before the onset of the NY trades as it pushed the pair downwards.

As shown in  the 4-hour chart, the price drove the 50 and 100-EMAs higher. The pair remained in the middle of the neutralize 200-EMA and bearish 100-EMA in the earlier trading. Resistance entered the 1.2400, support touched the 1.2300 region.

The technicals had a moderate reversal from the overbought zone. The MACD indicator traded in the downside. The RSI stayed around the overvalued readings.

In case the GBPUSD breakout within the 1.2400 resistance level upon the establishing of buy orders, the price recovery may extend through the marks 1.2450 and 1.2500. However, a negative signal and further risk easing would emerge when a movement push through the 1.23 level. Furthermore, sellers were able to send the pair towards 1.2200.

GBP/USD Fundamental Analysis: January 9, 2017

    A lot of analysts have been initially saying that the GBP/USD pair will be the currency most likely to experience the majority of the adverse effects of the recent surge in the USD’s value, especially since there is a lot of confusion and discussion going on with regards to the provisions of the Brexit process, particularly with its stakeholders, who all have to step up their game in the next two years. This is why the GBP/USD pair has recently become more susceptible than ever, and traders are advised against selling any bounces in  the GBP/USD pair. The downward trend in this particular currency pair is very evident, since its bounces have been very few and far in between, with deep corrections dogging the pair’s direction.

    Friday’s session proved this particular downtrend in the pair, since the market has seen the currency pair stop its consolidation and plummeted through 1.2400 points and eventually through 1.2300 points. The NFP report as well as the average wages data from the US also came in last Friday, with the data showing an increase in average wages, thereby increasing chances that the Federal Reserve would be soon stating its  next interest rate hike. The Scottish Prime Minister has also released some comments over the weekend, saying that Scotland would most likely undergo yet another vote with regards to “Scexit”, or Scottish independence from the UK. During the controversial Brexit vote, it can be recalled that Scotland initially voted to remain in the European Union but eventually had to concede after majority of the UK states voted to “exit” from the EU. This is only one the many issues surrounding the Brexit process, and will be incessantly putting the sterling pound in great risk.

    There are no major economic data expected today from both the UK and the US, and the market is expected to be continuously dominated by the existing market trends for today’s trading session,and the USD strength is expected to be the driving force behind the market for today.