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.

NZD/USD Technical Analysis: June 2, 2017

The Kiwi dollar declined in the day during Thursday trade while testing the mark 0.7050. Despite the choppiness of the market, the New Zealand currency have the possibility to beat the Australian dollar. It does not mean that the market will establish an optimistic stance, rather it will become more resilient. The market will search the level below 0.70 because this holds a nice large figure, however, the release of US employment figures on Friday involves plenty of noise.
The market will found the resistance on top of the 0.71 handle and the rally will soon fade away because the mentioned region seems resistive. As indicated on the higher level of the chart, some type of channel are trying to develop.

The NZDUSD is not easy to deal with because it is the least liquid among major pair and when the announcement is made, it would likely to have a violent move. With this, it is suggested to steer clear from the commodity-linked pair as this could lead you to pain if you did not take proper caution. The ability to break down under 0.70 region would break down significantly. It signals a longer-term indicator, either way, it could toggle continually moving a gradual ascending grind.

As the market maintain a choppy stance, lots of opportunities were also offered.

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.

NZD/USD Technical Analysis: June 6, 2017

The New Zealand broke in the lower channel during the Monday session. Later, the trend bounced off to fill the gap then declined again. There is massive support found in the 0.71 below which triggered the market to rise again as it reached the former break level. Currently, the market is attempting to move higher as it gains momentum to reach the 0.7150 region which would hint a bullish sentiment. 

The market could also retreat from this level towards the 0.71 handle once more. Overall, there will be high volatility and persist for some time in the market since the New Zealand dollar is relative to commodities market which always changes. Hence, the currency is expected to be traded with a choppy environment.

Buying on the lows is advisable for this pair and is not surprising for them to return as the trend moves in a downtrend. However, shorting this pair may not be the best move. If the price breaks lower than the 0.71 handle, the next move would be to go downward toward the 0.7050 level. 

Nevertheless, the market will be very choppy driven by geopolitical risks and in consideration of its sensitivity opting the U.S. dollars as a safety currency while the kiwi being the riskier one in this pair. Volatility is also anticipated to persist in either direction it goes.

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.

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.

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.

GBP/USD Fundamental Analysis: June 14, 2017

    The GBP/USD pair was finally able to make some significant headway amidst a highly volatile trading session yesterday after suffering from the adverse effects brought about by the results of the UK snap elections. As the Conservative bloc failed to get the number of majority they initially aimed for, this created uncertainties and risks within the market and has put the cable pair under severe downward pressure.

    But yesterday’s session served as  a breather for the GBP/USD pair as uncertainties within the country’s government formation are now starting to get sorted out, thus enabling the cable pair to push past towards 1.2700 points. The talks between the DUP and the Conservatives has so far produced positive results, and it seems now that this alliance will be maintained at least until the Conservatives need to work on several issues, including government formations. One such issue is the looming Brexit talks, with Theresa May staying defiant and believing that she will be able to push through with the Brexit talks in spite of political turmoil and calls for her resignation from her current post as UK Prime Minister. However, May still has to prepare herself as she will possible be faced by several hostile EU leaders who will want to take advantage of May’s position as well as the UK’s current international standing. In addition, Scotland is again on the brink of instigating another independence referendum, and all of these risks are expected to weigh down on the sterling pound both in the medium term and long term.

    For today’s session, the market will be focusing on the Fed’s next move with regards to its planned interest rate hike. If the Fed pushes through with its rate hike, then the market will be looking at the FOMC statement next in order to look for clues with regards to the schedule of the next rate hike. If the statement comes out as bullish, then the dollar could further increase in value and the sterling pound might again drop and could possibly revert to its range lows.

NZD/USD Technical Analysis: June 23, 2017

The Kiwi dollar break up to the upside amid Thursday trading hours and cut through over the region 0.7250, touching higher up to 0.7270 area, however, retreated to 0.7250 mark by which buyers have seen to make its entry towards the marketplace.

As the  24-hour exponential moving average still offer support causing the New Zealand to attract the attention of the buyers but pull back is required in order to meet those buyers.
The target is the level above 0.73 and when the commodity sector could at least make some recovery, it could further support the NZD.

Having said that, a consolidation will form between the 0.72 and 0.73 levels. Basically, we are on top of the “fair value” which indicates that buyers are nearly able to direct the market.
Ability to break on top of 0.73 will enable the market to crept higher and it may take some time to do so.

Moreover, the national currency of New Zealand Dollar appeared to be the strongest among other commodity currencies which have the possibility to keep going.

As a buyer, we recognize the breakdown under 0.72 area which is negative and has the potential to revise the overall projections.

The 0.75 level remains to be the target In the longer-term, even though it may take quite some time, the longer-term traders still believe that it will happen soon. With this, the market persists in buying the dips.

USD/CAD Fundamental Analysis: June 28, 2017

The USD/CAD broke through the support level 1.32 amid trades in the past 24 hours following the strength from the Loonies and sluggish dollar witnessed by the entire market.
Making it possible for the pair to trail near the 1.31 area, en route to 1.30 in the near-term. The next bounce could probably be seen at 1.30 level.

The greenbacks lost steam due to delay from the healthcare reform bill with increasing concerns that the bill should be revised. Another thing to consider is the possibility that the reform will start hitting roadblocks that could make policy decisions a much tougher task. Apparently, this is negative for the American currency and the upcoming data from the US seems to be bad after several weeks. The USD suffers in spite of the efforts of the Fed for not paying attention to the negative data, as well as to bolster the greens.

Moreover, Canadian data indicated an uptrend in the economy of Canada which is reflected from the CAD’s value which is further recognized by the Bank of Canada. According to BOC, the time for rate reduction is over since it signaled a hawkish stance which shows that they remain on hold in the near-term and plans to employ rate hike during the medium and long-term. Having said that, the Loonies bolstered along with the steady increase in oil prices that started earlier this week. The Canadian dollar had progress with increasing success causing the USDCAD to move lower.

Ultimately, we expect no major news from US or Canada, however, the US inventory statistics for oil is anticipated that could affect oil cost and could further weigh on prices of the commodity-linked pair.

EUR/USD Fundamental Analysis: July 3, 2017

The EUR/USD slowed down this morning which anticipates a renewed week this Monday morning. As the week started, it established lots of consolidation, in general, and moving over the pairs while traders will go back to work after the weekend, preparing themselves for a fresh start.

It is expected for an interesting week since this is the first week of July and another month usually contains plenty of data from different countries. During the second half of the week, it is scheduled of many upcoming reports including the NFP and FOMC.
Since the US market has the most number of data to be issued within this week, the dollar is currently in the center of attention. While the market expects to witness some development in data.

The US statistics in the past few months were actually weak as the market assumed that the Federal Reserve will not increase rates last month. However, the Fed choose to continue their plan and ignored the sluggish data. But this time, when the data remained weak, further rate hike might not be possible to implement. As the focus turned to the US dollar, the single European currency let the dollar to take the driver’s seat.

Apparently, the EUR is bullish followed by the increasing data within the euro region along with some strong implications regarding the QE tapering of the European Central Bank (ECB). Taking into account these data, the central bank might consider the tapering in a short while. This could also probably maintain a well bid position for the euro for this day and in the subsequent days.

The level around 1.0440 is possible to generate a strong resistance and was able to hold the price in the near-term. Ultimately, the ISM Manufacturing PMI data issued by the United States will set the week and consolidation should be expected, ranging from the pair on either side of the region 1.04 amid the day.

USD/CAD Technical Analysis: July 06, 2017

The trend line close to the 1.3030 level was achieved overnight which is already expected. Currently, the resistance region is being tested by traders from below. The uptrend is anticipated to continue in the upper region. The 1.1829 level is the limit amid the impulsive trend that cannot be breached.

The WS1 was positioned at 1.2788 followed by WS2 at 1.2698 with the weekly pivot at 1.2952 and the intraday support at 1.3015. On the other hand, its WR1 is found at 1.3045 with the Top wave or the intraday resistance at 1.3118 level.

For today, it is conducive in trading to keep all the buy orders open and set the stop-loss (S/L) below the 1.2829 mark since the trend is anticipated to bounce and proceed to go further upward.