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USD/CAD Technical Analysis: May 16, 2017

The U.S. dollar declined in early Monday session following the announcement of Russia and Saudi to prolong OPEC output reduction. This gives a bullish reaction for the Canadian dollar and we still await of the market reaction. For short-term, this translates as means to stimulate the oil market but gives an inverse reaction to the market.

If the price breaks lower than the current psychological levels at 1.3650, it could reverse back to the 1.36 handle. This is a significant level of long-term and a breakdown lower than the said level is a pessimistic indication. Yet, there is still a chance for long-term traders to return and push through this level.

The plan of production cuts was not as effective as expected that makes it not probable in the future. Long-term traders are most likely looking for positions lower in a lower value and there is a higher probability for traders to return when the psychological level is sustained higher than the 1.36 handle. Alternatively, if the price breaks lower than the psychological levels, then the market could further go down towards the 1.35 level that is positioned as significant level.

Regardless, there will be high volatility in the market with the current oil market condition. The USD/CAD pair is relative to oil prices and if the price goes higher, the pair is expected to follow after. Traders should be cautious in trading for long-term since there are other factors that affect the pricing such as the housing market.
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EUR/USD Technical Analysis: May 17, 2017

The EURUSD raise higher because of the support of a strong growth and below-than-expected data in the housing number of the United States which brought an impact towards the U.S Treasury yields, hence placing a downward pressure to the American dollar. The sales of US chain stores keep worsening that caused for the greens to move lower.
The Europe started to gain more confidence with hopes that the European Central Bank is going to remove the quantitative easing.
The pair climbed upwards reaching 0.9% near the mark 1.1080. The price was cut into the downtrend sloping line moving close to the support region 1.0990.
Further support is found alongside the 10-day moving average approaching the 1.0940 level. The target resistance can be spotted at 1.1299 touching its November peaks. Moreover, the momentum was positive since the moving average convergence divergence (MACD) histogram formed a crossover signal to buy. This is the result of the spread that crossed over the 9-day EMA of the spread.
The histogram shifted from negative to positive area indicating a buy signal. It also printed in the black along with an upward sloping trajectory and turns to a higher rate.

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EUR/USD Fundamental Analysis: May 17, 2017

The EUR/USD pair was headlocked with the bulls during the previous trading session. The currency pair had previously tried to move past the 1.0985 trading range and had corrected slightly, although this particular correction fizzled out almost immediately during the course of the session. The correction from Monday’s trading session caused the currency pair to make a headway towards 1.1000 points during yesterday’s trading session.
The greenback had backfooted during the earlier parts of Tuesday’s session after news came out that Trump had apparently leaked confidential data to Russian officials directly from the White House. This caused the greenback to be subject to significant downward pressure, which then enabled the EUR/USD pair to advance towards 1.1000 points. The currency pair even managed to move a bit higher during the London trading session. However, as the US economy released its dismal housing data, this put even more pressure on the US dollar and was even more aggravated by the fact that any slight weakness in the forthcoming economic data could seriously put the possibility of a June rate hike at stake.
The disappointing housing data from the US then caused the EUR/USD pair to rise towards 1.1050 and even 1.1100 during the NY session. Trump’s most recent fiasco regarding his leakage to the Russian government also delivered a blow to the USD, which then helped the EUR/USD pair to make a headway past 1.1100 and is now comfortably placed atop this particular range, with the pair looking poised for more. For today’s trading session, since today marks the second half of May, there is no economic data expected to be released except for the oil inventory data for the US economy. However, there are enough geopolitical news today which could provide fuel for the EUR/USD pair to advance towards the higher rungs of its range.

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GBP/USD Fundamental Analysis: May 17, 2017

The sterling pound’s bulls experienced a very harrowing trading day yesterday after the GBP/USD pair was unable to make any significant progress even after all the other major currency pairs were able to take advantage of the greenback going on backfoot. The cable pair remained within a very limited trading range and was unable to even advance towards its range highs, much less surpass this particular range. Several geopolitical issues has caused the dollar to drop, however, the GBP/USD pair did not have enough fuel for it to actually gain from the dollar losses.
The US housing data fell short of initial market expectations, and this proved to be somewhat damaging for the interest rate bulls who had already priced in the possibility of a June rate hike from the Fed. However, the market was more affected by news that Trump had apparently leaked top-secret information to the Russian government straight from the Oval Office, in addition to reports that Trump has apparently been caught dipping his fingers into a certain continuing investigation. These series of events triggered a massive dollar selloff, and while other major currencies such as the EUR were able to make use of this particular development, the sterling pound barely moved from its original position. The GBP/USD pair only slightly advanced from 1.2900 points and is now placed at just under 1.2950 points and does not look like it could induce a rally anytime soon. This is an indicator of just how weak the currency pair as of the moment and it could only be a matter of time before things take a turn for the worse.
For today’s trading session, there are no expected releases coming from the UK economy although international geopolitical events could possibly dominate the market for today. However, the GBP/USD pair is not expected to exhibit that much volatility given its recent weakness, and the pair should start a rally soon in order to placate any risk of the pair’s current standing taking a turn for the worse.

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AUD/USD Technical Analysis: May 17, 2017

The Australian dollar closed higher than the U.S. dollar during Tuesday session. Investors responded to the raising concerns in U.S. with lower U.S. Treasury yields, feeble U.S. housing data and a lesser possibility for a Fed rate hike in June. The overall direction of the pair will depend on the Treasury yields. Traders reacted pessimistically to Westpac Consumer Sentiment dropping up to 1.1.%.

There are no major U.S. economic reports to be released today. Traders continuously keep an eye on problems with Trump regime and they have the chance to react to the most recent weekly inventories data of U.S. Energy Information Administration.

The main trend is directed downward as shown in the daily chart. The pair is trying to move higher from the .7329 low on May 9 although the momentum remains the same. To reverse the trend, traders need to impede the short-retracement zone between .7442 and .7469.

Traders should also look out for the resistance level as a strong resistance region is formed at .7454 with major 50% level. The closest support resides at .7384 key Fibonacci region followed by .7329 down below.

The current price level set at .7419 and stays between the resistance and support levels which means that traders have uncertainty and expected volatility in the market.

If buyers try to oppose the trend, the next psychological would be at .7443 and .7446 region then moves to .7449 and .7454 and will most likely gain momentum at .7454 towards the next target at .7469 level. The .7469 Fibonacci level at .7469 would be the turning point for the next downtrend towards .7501 angle.

Underneath, the initial support target would be at .7389 uptrend angle followed by a major Fibonacci level at .7384 and lastly towards the .7329 as the probable bottom support angle. However, if the market fails to attain this level, there is a high possibility for a breakout at .7359.

Until buyers return in the market and exceed the .7469 level, there will be least resistance and rallies will be fruitful in the market. This will affect the price trend whether it will be reversed or not. Currently, the market gives off a neutral stance

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GBP/USD Technical Analysis: May 17, 2017

The GBP/USD prevailed amid Tuesday’s session as the 1.29 region offered a little bit of support for the price movement. The market is expected to move sideways but the longer-term upward bias may exist also.
The pair is not recommended to be used as of this moment, however, long-term traders may found some opportunity on its value as the marker progress forward.
During the session, we arrive at a higher level at 1.2960 and as low as to the 1.2860 area and this activity showed the volatility within the day. Upon reaching the extreme lows, buying opportunity might be offered to cause the Cable to beat around amid the trading day. There are also few opportunities that could help us establish a position.
Generating a longer-term position appears to be favorable. While small incremental trades are setting up a great move in the upside and eventually the market is projected to drive on top of the 1.30 region which shows an area with psychological significance.
A break over the mentioned mark will push the market near 1.345, which is an area of a massive consolidation. Holding the 1.2750 area will preserve the bullish sentiment.

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GBP/JPY Technical Analysis: May 17, 2017

The British pound against the Japanese yen attempted to move upward during the Tuesday session but the 147 level has been exhaustive levels. The pair would most likely bounce hereafter between the 147 and 146 region. If the price breaks lower than the 145.75 level, the market will try to reach the 145 handle.
Traders appetite for risk will easily affect the pair and will adapt the stock market condition. Today, the stock market began negatively but was reversed as hints of support found because of the U.S. dollar. There is a high probability that the market will remain in consolidation for near-term.
The overall perspective of the pair gives a bullish sentiment with a little volatility and backtracking in the past to make the most out of this condition which is possibly impulsive to move upward.
The 150 handle is a significant level that cannot be ignored by the market as they market makes this as the next target area. Despite the breakdown towards 145 handle, the trend remains bullish but will still try to move higher as there are buyers in the market.
If the price breaks below the 145 handle significantly that could shift the market. The bullish trend will most likely remain the next short-term. Yen-related pairs are gaining support level for the day and will be sustained even in the long-term which is usually the case. Although traders should expect high volatility in the pair.

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NZD/USD Technical Analysis: May 17, 2017

The New Zealand dollar against the U.S. dollar pair has a highly choppy Tuesday session as it persists to rebound close to the 0.6875 area. A bullish line is seen and a break higher than the 0.69 level indicates an important hint to initiate buying the pair. The next level will be towards 0.6950 level or even higher.
There is a high volatility for short-term and it would be safer to wait on the sidelines any time. It is also the least liquid among major pairs which is significant in the market.
The Kiwi is relative to the commodity market as it is highly sensitive and influenced by commodities. The currency could be used as a substitute to the overall sentiment of the commodity market globally.
Volatility will remain in the market no matter what happens next and traders should take advantage of short opportunities. A move towards the 0.6850 still depends on the flag patterns formed. Traders could either try to break out or wait on the sidelines which will be more conducive for other commodity currencies instead of the New Zealand dollar. Patience is the key and trades in smaller positions is the best way to go for the pair.

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USD/CAD Technical Analysis: May 17, 2017

The overall American session has been very choppy on Tuesday which also affected its Canadian counterpart. Moreover, an announcement regarding inventories in crude oil was released today and the market tends to find a better position as it anticipates for the possible flow of market volatility.
The level 1.36 remains important when it comes to support with expectations that the market will have a series of test within this region for the next hours. However, the scheduled data should be disclosed prior acquiring this position because the market could trigger a massive reaction. Therefore, it is much advisable to ward off from the USDCAD till the figures were already issued.
As of this writing, the trade is in between the marks 1.36 and 1.3650. Do not be so overwrought about this except when a significant impulsive move happened but we assumed that this will going to happen when there is some substance from the report.
Meanwhile, short-term traders appeared to be interested about scalping the commodity-linked pair despite the fact that there is a higher possibility for the downward bias to occur in the near-term.
Toggling around the market might be best when trading, as of now. But sure enough, both sides will provide further opportunities.
After the release of the announcement, it suggests that an impulsive action would be the best direction.

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EUR/USD Technical Analysis: May 18, 2017

The EURUSD extended its progress seeing the greenbacks to go through below the pressured area due to further issues concerning the Trump administration. While U.S. stocks dropped as the yields decline which paved the way for the yield differential to move inclined with the single European currency.
According to the report of NY Times on Tuesday last night, the former director of Federal Bureau of Investigation, James Comey created a memo after the meeting he had with Trump, accusing the American president of obstructing justice.
Moreover, the pair climbed higher for the fourth time during the trading session and aim to reach the resistance region 1.1299 close to it peaks on November 8. The support highlighted the 1.0966 area near the 10-day moving average.
The momentum remains positive considering the moving average convergence divergence (MACD) exhibits a crossover signal to buy. This event turns up because the spread crossed over the 9-day EMA of the spread. The histogram moves back and forth through the positive and negative territory as it confirmed the buy signal. The MACD printed in the black along with the uptrend sloping impetus that expands prices for the pair.
The RSI heightened with the price actions suggesting an ascending optimistic momentum. The trend. The trajectory drove the resistance towards the 72 readings which is above the overbought condition of 70, this could trigger for a correction within the exchange rate.

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EUR/USD Fundamental Analysis: May 18, 2017

The market had a chaotic trading session yesterday after several weeks and days of muted activity. The EUR/USD pair has shot up yesterday, with its effects reverberating throughout the market. The euro’s uptrend can be mostly attributed to the euro’s higher value as compared to the dismal state of the greenback, which has been consistently backfooting during the past trading sessions. The EUR has been propped up by a series of positive economic readings from the EU and a bullish ECB stance, with the central bank saying that it could possibly taper its QE policy during the latter part of 2017.
The EUR’s recent strength has then enabled the currency pair to inch consistently higher as it was finally able to eclipse the value of the dollar. Now that the market is getting more and more affected by the dollar weakness, the EUR/USD pair’s uptrend is unstoppable as it was able to advance by as much as 200 pips within this week, with minor if not no corrections at all. Meanwhile, the US dollar has been kept under tremendous pressure due to the slew of geopolitical updates from the country’s economy which all turned out to be disappointments. Among these are a negative housing data and Trump apparently leaking top secret information to Russian government officials, which has cast doubts on whether the Fed will still be pushing through with its planned rate hike next month, as well as its subsequent announced rate hikes within the year. Long-term dollar positions are now unraveling as the market has to adjust its initial market pricing of the Fed rate hike from 90% to a much lower level.
For today’s session, there are no major news releases from the US economy although we do have ECB’s Draghi making a statement within today’s session. The central bank president is not known to discuss monetary policies during speeches like this, although the market will be monitoring whether he will be making statements which could potentially weaken the euro’s value.

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USD/JPY Technical Analysis: May 18, 2017

The U.S. dollar against the Japanese yen broke below during the Wednesday session as breaching below the 112 level which gives off a supportive inclination before. This becomes an obstacle for traders who are interested in going long and it seems that this trend would continue for some time. However, if the trend goes back higher than the 112 region, this changes the market sentiment to be bullish.

The political problem concerning Russia and United States gives a negative impact on the economy and the market is already taking action. For the long term, the trend could persist to move higher but it is best to wait on the sidelines for now until the uncertainty stabilizes.

If the market can break higher than the 112 handle indicating bullishness as it will most likely go higher from the current psychological levels. The next target is at 113 level then towards 113.50 level. However, if the price breaks below reaching fresh new lows moving towards the 110 level residing as strongly supportive.

The stock market will influence the pair hinting the general market sentiment. Although, most of the U.S. stocks are actively dealt by Europeans instead of Americans. It seems that Americans will gain momentum and push the stock market higher. Traders are looking forward to how the stock market closes and this is significant for the pair.

 

USD/CAD Technical Analysis: May 18, 2017

The U.S. dollar against the Canadian dollar had a choppy trading during the Wednesday session. This was mainly because of the reports released on U.S. oil inventories giving a bullish sentiment in the market since there is a high demand. Although there is still a potential risk in the market as they are concentrating on the issues from the United States including the political theater and Trump’s being accused. There are still no factual reports to confirm that the market may be reacting too early.

High volatility is anticipated in the market that may not be favorable to the greenback but with the sensitivity of the loonies, it is not impossible for the 1.36 level to become supportive.

A break higher than the 1.36 level gives off a bullish sentiment that is gaining appeal from the market. There seems to be a low activity from the market despite the bullishness brought by oil prices during the Wednesday session. As the oil market climbs higher, this would have a detrimental effect on the Canadian dollar. Moreover, the Canadian housing market is also not performing well as lenders become problematic similar to how it was nine years ago in the United States.

Consequently, the long-term uptrend will most likely persist although there will be choppiness in the market. However, if the price breaks lower than the 1.3550 region instead, this would proceed to move lower while the oil market will be directed upward. Hence, traders should monitor both markets in trading this pair.

 

GBP/USD Technical Analysis: May 18, 2017

The GBPUSD rallied throughout the day following an initial grind in the sideways yesterday. The area above 1.30 continued offering a significant resistance level as well as a psychological hurdle. A break on top of the mentioned area would allow the market to extend its upward movement while reaching the mark 1.3450 is the previous area of consolidation by which previously dealt with. A short period of exhaustion is anticipated within that area since it is a large and important figure.
The British currency still go through some noise within its settings since the market has continuous fears regarding the UK leaving the EU together with the unpredictable inflation of United Kingdom.
The chart further presents that plenty of support can be found around the 1.29 handle, however, the level above 1.30 is mainly resistive. We need to gather enough volume and momentum in order to make a gap to the upside. The line that shows a successive back is based on the daily action and it is recommended to continue following this trendline.
A cut through under the thick uptrend line would likely turn the market around and pull of a breakdown.
Moreover, the sterling is expected to gain a higher stance which slightly surprise the traders. A break on top of the 1.2750 region would appear that the GBP and the downtrend is over.
We look forward that the buying pressure will return in the market.

 

GBP/JPY Technical Analysis: May 18, 2017

The British pound against the Japanese yen declined during the Wednesday session after it gapped the 145 handle. This area gained attention from the market as it is an important psychological level because of the risk-off concern following the U.S. meeting with Russian officials and some more information being disclosed in the process. Although there is no definitive report yet, the market may have been reacting too early. With this pair being highly sensitive to traders’ appetite for risk globally, it is not surprising the pair dropped in effect.

If the market is able to break higher than the 145 handle, this did not just simply gaped a psychological level but when they also exceeded the peak of the shooting star, the overall market tone would become bearish. Although, the 144 handle holds to be supportive which gives hint on the accumulation status of the market.

Hence, traders could wait for the next move and not rush before it breaks over the 145 handle being strongly resistive. However, is the price breaks lower than the 145 handle instead, the price trend will most likely move downhill towards the 142 handle as the potential next target in the next few sessions.

This pair is highly sensitive to abrupt changes in headlines suggesting traders be careful of their trades making sure that certain levels are set which could sudden fluctuate into a different direction.

 

NZD/USD Technical Analysis: May 18, 2017

The national currency of New Zealand had rallied amid Wednesday session as it broke on top of the 0.69 region and rebounded to test the breakout intended for the support in which we successfully acquired. Meanwhile, a move towards the 0.6950 region occurred and the bullish flag shown in the chart seems validated.
Imposing a buy position is not recommended at this point until we obtained some pullback of any type in order to see some support signals upon reaching the 0.69 handle. The fastest way to get there is to purchase a break above the 0.6950 mark. So we think highly of chasing the trade.
Moreover, the US dollar should be taken into consideration since it indicates a sort of weakness due to the ongoing political turbulence in the United States. But there are instances wherein these active trends was unable to preserve momentum, requiring for a supportive for the candle either a breakout on top of the region 0.6950 for at least 4 hours. With this, it would be more favorable to buy as high volatility is projected.
The prices of commodities and the overall market sentiment would weigh on the New Zealand dollar.
These factors could make everyone vulnerable and entangled on the inverse side of the market. Be cautious in the following session as we await for some stability from the Washington DC political theater.

 

GBP/USD Fundamental Analysis: May 18, 2017

The GBP/USD pair is still toiling to make significant progress during yesterday’s trading session in spite of all the activity happening within the US economy. The cable pair has to be able to prop itself up before the dollar strength reverts, otherwise the sterling pound would be hit by the repercussions of this particular occurrence.
The cable pair has been unable to take advantage of the situation although yesterday’s session was a bit better since the pair had attempted to reach its range highs, unlike Tuesday’s session wherein it did not even make any attempts to surpass its highs. The GBP/USD pair had tried twice to move beyond its range highs but was immediately met with large-scale selling, leaving the currency pair with no choice but to revert towards its previous range of 1.2950 points. Traders are now speculating that a massive option at 1.3000 points could be the reason for the major selling which has characterized the pair’s activity this week. In addition to this is the possible uncertainties brought about by the snap elections scheduled next month. This is why the market should expect the GBP/USD pair to remain consolidating until this month ends, with a major rally possibly happening once the June elections comes to a close, with May expected to come out as the victor.
For today’s session, the UK economy will be releasing its retail sales data while there are no expected releases from the US economy. The retail sales data is expected to come out as positive, although this might not be enough for the GBP/USD pair to make any actual progress within the day and surpass the 1.3000 trading range.

 

USD/CAD Fundamental Analysis: May 18, 2017

The USD/CAD pair is probably the only major currency that was able to take full advantage of the dollar weakness. The USD has been suffering severe repercussions from the negative political events happening within the US economy, but the loonie is still looking very good and remains ranging and consolidating on both sides of 1.3600 points without any certain directions as of the moment. Although this has resulted into a choppy price action for the pair, it is pretty much evident that the pair’s bulls will be able to weather any corrections that the pair might encounter.
The dollar has been adversely affected by reports of Trump dipping his hands into certain investigations, and these allegations made international headlines during the past days. This has also affected the possibility of a rate hike next month, causing the market to revoke its current pricing of a rate hike which was initially priced at 90%. All of this has led to major dollar selling across the market. Oil prices are also looking pretty stellar as of the moment, and a combination of these events would normally lead to a major correction in the value of the USD/CAD pair. This is why it is so surprising that the pair is still consolidating and seems to be unaffected by the several events happening within the market. The pair is now looking poised for another breakthrough at 1.4000 points.
For today’s session, there are expected releases from both the US and the Canadian economy, and this is why the current events are expected to be the dominant market trend although the USD/CAD pair is expected to remain consolidating.

 

EUR/USD Fundamental Analysis: May 19, 2017

The greenback was able to take a breather during yesterday’s session as Trump’s issues stepped aside for the meantime, therefore enabling the US dollar to recover slightly across the board. The EUR/USD pair remains on the positive side of the chart, although the renewed strength of the dollar triggered some minor corrections in the overall stance of the currency pair.
During the past few sessions, the greenback has been under severe pressure after reports that Trump had interfered with Russian investigations, leading several officials to question his credibility as president. This triggered a large-scale selling pressure on the dollar and led to a dollar weakness, along with uncertainties on whether this would affect the country’s economic state as well. As the dollar fell, the market crashed as well. However, the market encountered a small reprieve yesterday after former FBI Director James Comey stated that Trump did not interfere with any aspect of the said investigations. This then triggered a greenback rally, causing the EUR/USD pair to drop by 100 pips from 1.1180 points down to 1.1080 points. This correction is fortunately just what the pair needed since the steady rise in the pair’s value could have become alarming if it did not stop. The pair has since then recovered and is now located at just over 1.1100 points.
For today’s session, there are no expected releases from both the EU and the US economy, and this is why the EUR/USD pair is expected to remain consolidating on both directions of 1.1100 points. The market is expected to remain ranging today as the market absorbs these developments which happened within the week.