Daily Market Analysis by ForexMart

USD/JPY Technical Analysis: October 25, 2016
The tension continues to build up for the pair USD/JPY during the mid-European session. The price lies within the range of 103.70 and 104.00 levels in the beginning of the week. Yen appreciated after the release of the Trade Balance Report and PMI Manufacturing for this month.
The 50-EMA supported the price trend and tested the zone as it recoiled upwards including other EMAs (50, 100 and 200). The physiological levels comes at 104.60 to 104.00 levels.
The MACD indicator remained at the centerline. Should it move to the negative ares then sellers will predominate the market whist if it move to the positive area, it will a feast for the buyers. The RSI is set within the neutral zone.
The trend would remain bullish if the pair remained higher than the 103.00 level but buyers would try to go beyond the 104.00 mark and a possible short-term correction at 103.00 level.

GBP/USD Fundamental Analysis: October 25, 2016
Despite the ongoing news that were mostly about UK and Brexit, the pair GBP/USD remained at a consolidation level yesterday because of low volatility that was consistently stayed at 68 pips for the whole day. This is unexpected if compared to last week’s price activity with high volatility.
The UK Prime Minister Theresa May mentioned that the parliament will undergo numerous debates about Brexit process including the timeline. Opinion of other members will be given the chance to be heard and come up with the decision prior to final agreement in the negotiating table with Euro leaders which will begin the process next year. Britain would do its part to keep the Brexit process seamless to steer clear of the economic downslide which is expected to happen by by investors and economists alike.
The Scottish First Minister, Sturgeon, mentioned that they would still undergo the Brexit process even if it will be a difficult journey. The Scottish region opted to stay in EU but was a minority compared to the votes from mainland. They stick to the principle to stand independently rather than to experience something that they do not want.
There is no critical reports to be released today but the talk of BOE Governor Carney is schedule to heard later. The trend is anticipated to be calmed as there will be less volatility as the market stand still waiting for the release of UK GDP within the week but the range of price activity to expand this day.

USD/JPY Fundamental Analysis: October 25, 2016

The USD increased in relation to the JPY amid the impending interest rate hike by the Federal Reserve in December, along with a heightened demand for assets with higher yields. For the last trading session, the USD/JPY pair closed down at 104.175 points after increasing by up to 0.35% or 0.365 points.

The MarketWatch program of the CME Group reported that market traders are expecting a 70% probability that the Fed will be pushing through with its interest rate hike in December. Positive economic data from the previous session caused a reaction from dollar traders with bullish stances while simultaneously reacting to hawkish comments from the FOMC. St. Louis Federal Reserve President James Bullard also commented on Monday that the market would only need a one-time interest rate hike to sustain the economy.

The USD/JPY pair further surged during Monday’s session after a significant increase in the US equity markets caused an increase in demand for high-yield assets. However, this has caused the Japanese yen to decrease in value. The market is not expecting any major economic data from Japan in today’s trading session, and the main determinant of the direction of the currency pair will be the US equity market movement. The USD/JPY is expected to receive more stable support from an increased demand for stocks.

GBP/USD Technical Analysis: October 25, 2016

The GBP/USD pair lost some of its footing during the last trading session and has settled within the 1.2200 region. The sterling pound experienced ambiguity after the release of the UK CBI Industrial data showed a drop in manufacturing orders for October and manufacturing output increasing in the previous quarter and volume levels for export reaching its highest levels in over two years as a result of a weakening in the GBP.

The market is expecting that the GBP will be subject to even more pressure due to the uncertainties surrounding the UK amid Theresa May’s Brexit strategies which were subject to questions and concerns from various lawmakers in the UK government. The GBP/USD generally maintains a neutral-bearish stance in its 4-hour chart, with a somewhat bearish 20 SMA and an absence of directional strength in the pair’s technical indicators in the negative side of the chart. Current support levels for the currency pair is at 1.2170, and analysts are expecting a bearish extension if the pair manages to go even lower than the indicated support level.

USD/JPY Fundamental Analysis: October 27, 2016

The USD decreased its value in relation to the JPY during Wednesday’s session after yen traders resorted to safety buying as a reaction to the drop in US equity markets. The trading session closed down with the USD reverting back to its previous value against the JPY. The USD/JPY is currently at 104.468, increasing by up to +0.25% or 0.260 points.

Analysts are stating that the USD dropped further due to concerns regarding the Federal Reserve’s monetary policy and uncertainties regarding the impending US presidential elections. However, the rallying of the USD is an indicator that there is an increased possibility for a Fed rate hike in December, and risks are possibly leaning on the downside territory. This will then add more focus to the release of the Durable Goods report on Thursday and Advance GDP data which will be released this coming Friday.

Thursday’s trading session is expected to have more double-sided trades since traders are monitoring the general direction of the US Treasury yields, as well as high-risk assets demand. Traders should also consider monitoring the stock market, since the JPY is expected to increase if support levels for the US equity markets starts decreasing.

GBP/USD Technical Analysis: October 27, 2016

The GBP/USD was able to revert back from its losses during the previous trading day after the cable pair dropped down to its lowest levels since the Brexit referendum was announced. The currency pair fell by up to 150 pips during Tuesday’s trading session and hit 1.2081 points before reaching support levels. The currency pair was then able to recover some of its lost value and has recently had a session high of 1.2243 points. The pair was last seen trading at around 1.2225 points.

On the other hand, the expected US economic data came out as very ambiguous, after Services PMI data increased by 54.8 points for October, going above the expected 52.3 range. US home sales data surged by up to 3.1% for September and had a seasonal yearly rate of 593,000 after failing to reach the expected range of 600,000.

Support levels for the GBP/USD are expected to be at 1.2081 and 1.2000, while resistance levels are expected to be around the region of 1.2259 and 1.2297 points.

USD/CAD Fundamental Analysis: October 27, 2016

The CAD experienced substantial deprecation during Wednesday’s session in spite of a disappointing US crude inventories data. US oil stocks decreased by up to 600,000 bpm last week, going even lower than the expected increase of up to 700,000 bpm. This decrease in oil prices caused a decreasing trend in the Tokyo session after the data for the API inventory exhibited an increase by up to 4.8 million barrels, but crude prices were able to revert immediately after the US Energy Information Administration released its reports. However, these gains were again revoked after traders expressed concerns regarding the OPEC deal.

The USD/CAD pair experienced a significant increase by up to 0.213% during the past session, with the pair now trading at 1.3664 points after the CAD decreased in relation to the USD due to a drop in energy prices. For the rest of this week, CAD traders are expecting the release of the US durable goods data this Thursday. However, the main focus for this week is the flash GDP for the US. The overall growth for the US is showing an increased momentum, and this is expected to cause the USD to significantly increase since this will further cement the possibility of a Fed rate hike in December. However, a further lack of activity from the Federal Reserve might prompt the Bank of Canada to intervene on behalf of the central bank’s monetary policy.

EUR/USD Technical Analysis: October 28, 2016

The center of attention of the market is on the Initial Jobless Claims and Durable Goods Orders releases. For that reason, there was no major event scheduled in the European Union as per the market calendar.

The pair established a sluggish condition amid the Asian session yesterday. Meanwhile, the price reached the 1.0900 level by which the downward momentum subside. It further strengthens as the pair plunged off the region, enabling the EURUSD to regain its profits during the European trades.

It was shown in the 1-hour chart that the price maneuvered on top of 100-EMA where the euro meets a solid support. The 50 and 100 EMAs kept intact on its recent position while 200-EMA headed southward. Resistance arrived at 1.0950 region, support approached the 1.0900.

MACD expanded and demonstrated weakening against the seller’s strength. RSI prevail in the neutral position.

GBP/USD Fundamental Analysis: October 28, 2016


The GBPUSD demonstrated an active and ongoing trades on Thursday along with the UK GDP Data release. The GDP release was highly anticipated by profuse investors and the market generally since this quarterly basis is a primary indicator of the economic decline after the referendum was ratified.

Upon the issuance of the data, the pound and greens established a straight route approaching the 1.2240 range. The economic health indicator presented a better-than-expected 0.5% value compared to 0.3% which enable the pair to push towards 1.2270.

The bulls assumed that they could break the above level of 1.2270 but failed to do so. According to forecasts, resistance sits at 1.2280 but there is a tendency that it could manage to its daily high at 1.2273 or the possibility to made an immediate fallback.

USD/CAD Technical Analysis: October 28, 2016

The CAD experienced a drop in relation to the USD after dovish statements from the Bank of Canada last week plus corrections in crude oil prices put downward pressure on the CAD. The USD/CAD pair was able to maintain its bullish stance during Thursday’s trading session, with the pair remaining at the 1.3400 region, which is the pair’s current critical range. However, the pricing for the currency pair was able to drop slightly prior to the opening of the New York session.

The USD/CAD was able to go over its current moving averages after its 50-EMA provided ample support for the currency’s price in the daily chart. However, the pair is seen to have probable difficulties with regards to moving lower from the 50-EMA. The moving averages for the currency pair are generally higher, and analysts are expecting resistance levels to be at 1.3400 points while support levels are expected to be at 1.3300.

The MACD indicators for the USD/CAD pair is still consolidating within its levels, while the RSI remains at the overvalued trading range. Analysts are expecting that if the pair manages to go break through the 1.3400 region, then the USD will be able to have more profits upon reaching the 1.3470 range. On the other hand, if the pair drops and hits the 1.3300, then the market is advised to look at the trading range of 1.3250.

USD/JPY Technical Analysis: November 3, 2016

The USD continues to be subject to downward pressure during Wednesday’s trading session due to uncertainties brought about by the upcoming US Presidential elections next week. The USD/JPY pair was unable to maintain its previous levels of 105.00 after a heavy seller resistance within this particular region, causing the currency pair to lose some of its value. Wednesday’s trading session saw the pair remain in the negative territory as the downward momentum for the currency pair continued. Seller pressure also pushed the USD/JPY further below 104.00 and is now approaching the 103.00 trading range.

The USD/JPY pair broke through 103.50 and is well on its way to 103.00. The pricing of the currency pair went over the 100-EMA and is testing the 200-EMA for the pair’s 4-hour chart. Meanwhile, moving averages for the USD/JPY is currently on the downward direction. Resistance levels for the pair are expected to be at 103.50, while support levels for the pair are expected to be at 103.00. MACD indicators for the pair declined, showing seller strength. RSI indicators are now a few pips away from the oversold level which signals a possible downward move for the pair.

If the USD/JPY continues to be subject to downward pressure, then the pair could possible reach its previous low of 102.50. However, there is still a probability that the pair would be able to reach its resistance levels at 103.50-103.80 points.

NZD/USD Fundamental Analysis: November 3, 2016

The NZD was able to reach its highest levels since October, causing the pair’s trend on its daily chart to go in the upward direction. Presently, the NZD/USD pair is trading at .7287 after increasing by +1.43% or 0.0103 points.

The Federal Reserve’s meeting on Wednesday backtracked to election-related concerns, whose results could possibly put an increased pressure on the USD. Democratic candidate Clinton is slowly being overtaken by Republican candidate Trump, and investors and traders are now banking on a possible Trump victory. Meanwhile, the Federal Reserve was unable to sway traders and investors with its most recent adjustments to its monetary policies. The Fed voted to maintain its current interest rates, but left out hints in its statement which could have either made or broke the possibility of a rate hike in December.

The NZD increased significantly on Wednesday after recent government data exhibited positive employment growth for the nation in the third quarter, with this growth accelerating to three times the previous growth rates in July and September. This could be an indicator that the Kiwi economy might be doing even better than what the Reserve Bank of New Zealand initially thought, and could also mean a possibility of an interest rate cutback in the coming weeks.

EUR/USD Fundamental Analysis: November 3, 2016

The EUR/USD pair continued to be on the bearish territory as the US dollar continued to decrease in value during the last trading session. The market is now considering the possibility of a Trump victory, and a lot of market players do not want to be caught off-guard which was what happened during the Brexit shock vote. The impending US elections has already prompted investors to go to safe haven currencies such as the JPY and CHF. Normally, investing in the USD during times like this would be beneficial to investors, but since the USD has turned risky, investors are now resorting to gold and other safer investments.

The currency pair is now placed over the 1.1100 region with a lot resistance levels surrounding this particular region. The statement released by the FOMC did little to appease the market since the statement was able to meet market expectations. However, the Fed is still open to the probability of a rate hike in December even though the central bank did not give out any hints during its previous bank meeting. The Fed statement was unable to induce market volatility and only caused a few jumps for the currency pair.

The market is not expecting any major economic news releases from the eurozone. However, the market is expecting the release of the UK High Court ruling which will be determining whether the Parliament will be invoking Article 50. If the Parliament votes “No”, then Theresa May would have full bearings of the Brexit strategies, causing the GBP to be negatively affected and could cause the USD to inch higher.

USD/CAD Technical Analysis: November 4, 2016


The loonie established a neutral position versus its base currency as of yesterday. Seeing the greenbacks softened consequent to the unfavorable result of the American labor statistics. While news regarding the oil price reduction had affected the Canadian dollar.
The pair stayed in the neutral phase since last week and remained the neutral opinion until now. Moreover, USDCAD stick around the 1.3360 as its weekly lows. The price toggle in the boundaries of 1.3400 and 1.3350 levels.

As shown in the 1-hour chart are moving averages that sits in the neutral position as well. The pair headed over the downward direction but blocked by the 200-EMA. While the accelerating notion turned down upon arriving to the regions of 50 and 100 EMAs.

Resistance settled in the 1.3400 level, support is located at 1.3330 region. MACD indicator is placed within the centerline.

If the histogram attained the positive zone it means that buyer’s strength are growing. When the indicator reached the negative territory, this implies the seller's capability to manage the entire market. RSI is found also in the neutral domain. It is expected that the pair will maintain a bullish outlook providing that the price is on top of the 1.3330.

GBP/USD Technical Analysis: November 4, 2016


Since the recently issued UK’s Purchasing Managers' Index presented much better results which cause another reinforcement for the sterling on Thursday. On the same day, the pound were able to optimize on the back of BoE’s conservation of rates.

The pair demonstrated a positive tone and kept a bullish position amid the trading day. On the other hand, the GBP develop another bullish outlook in the interim of EU hours.

As traders attempted to push the pound to a higher level it reach the 1.2500 resistance level. Upon breaking the 100-EMA, the price headed north close to the 200-EMA ahead of the NY session. Current resistance can be found at 1.2500, support sits at 1.2400. MACD is located in the positive zone. The histogram escalated which means improved strength for the buyers. RSI is seen at the overbought condition.

In case that the pair preserved a bullish outlook, it would keep its reversal moving towards the 1.2500 region.

EUR/USD Fundamental Analysis: November 7, 2016

The EUR/USD is expected to incur significant gains due to risks that Donald Trump could possibly win the upcoming presidential elections, something that the international market did not anticipate. However, some market players are also saying that the USD would be able to regain some of its strength over a few days and a relief rally would occur should Clinton come out as the winning candidate in the elections. Prior to the opening of the Monday session, Clinton was already cleared by the FBI with regards to her e-mails and this is expected to be good for her campaign and has already caused some currency pairs to open up certain gaps.

The EUR/USD pair has already dropped by up to 70 pips and this is just a sneak peek of what could possibly happen if ever Clinton wins the presidential elections, especially since the market is now anticipating a Clinton victory with Trump’s chances becoming invariably slim.

Market players are expecting that this particular gap in the currency pair will be temporarily covered, while the USD is set to regain some of its lost value during the next trading sessions, especially with the impending presidential elections.

Technical Analysis: November 7, 2016


The USD/JPY pair was able to make a small recovery during last Friday’s session after a series of risk-offs which hit the European and American stock market. However, the pair continues to stay in the negative territory and traded within Thursday’s low levels on Friday’s session. The currency pair had a fairly bearish stance after the pair experienced selling pressure above the 103.00 region. Resistance was encountered by USD bulls along the 103.20 trading range where the 200 EMA is also located. The 200 EMA maintained the pressure on the USD/JPY by resisting all possible recovery moves.


The 50 and 100 EMAs for the currency pair decreased quickly, while the 200 EMA maintained its bearish outlook for the session. Resistance levels for the currency pair is expected to be around the 103.50 range, while support levels are expected to come up at the 103.00 region. The technical indicators for the USD/JPY pair are seen to be slightly bearish, with an increase in the MACD indicator showing a weakness in seller positions. Meanwhile, the RSI indicators for the pair is still consolidating within its undervalued regions.


The USD/JPY pair is expected to have its resistance levels at 103.50 if the currency pair would be able to consolidate over the 103.00 region. However, the USD/JPY might again experience a decline if the pair closes the session with a lower value than this particular level.

USD/JPY Fundamental Analysis: November 7, 2016

The USD is expected to increase significantly against the yen during Monday’s trading session as a result of investor reaction to reports that the FBI will be dropping its investigation of US Presidential candidate Hillary Clinton’s e-mails and will not be filing any charges against the Democratic candidate.


This then means that the Monday session is most likely to be a risky day as investors are expected to go on an aggressive USD and stock-buying spree especially after last week’s sell-offs. Investors are also expected to sell their safe haven assets which were bought as hedge against the probability of a Trump victory, which includes the JPY, EUR, and gold stocks. The USD/JPY dropped to its support region located at the 102.799-102.155 range, going down at 102.533. The pair is expected to rally back to at least 104.03 to 104. 383 if the short-term rally for today’s session proves to be strong enough for the currency pair.


Market players are expected to mainly focus on the upcoming elections even with new economic events taking place, after which, the market is expected to shift its focus on the expected Fed rate hike this coming December. These events are expected to induce an upward shift in the value of the US dollar. The Bank of Japan is expected to release the minutes of its latest Monetary Policy Meeting, while the Average Cash Earnings is expected to be released at 0.2%. Minor reports from the US to be released this Monday are the Loan Officer Survey, Labor Market Conditions, 10-Year Bond Auctions and Consumer Credit data.

USD/JPY Fundamental Analysis: November 8, 2016

The USD largely increased in value as compared to the JPY due to an increased in the demand for high-yield assets. This rally in the USD was mostly due to news that the FBI did not find any incriminating information in presidential candidate Hillary Clinton’s e-mails. Aside from a surge in high-yield assets, this news also led to rallies in the international stock market, and the demand for the US dollar surged after investors shifted from the safe haven currency. The USD/JPY pair closed down the previous session at 104.474 points after increasing by 1.37% or 1.411 points.

The USD/JPY is expected to continue its upward direction until Tuesday’s session since investors are expected to add up their bullish bets for a possible Clinton victory. Clinton currently has a 90% chance of winning the elections which is set to happen this coming Tuesday. Meanwhile, the JPY continues to reprise its role as a fund currency due to Japanese banks consistently offering low-level interest rates.

US Treasury yields also increased on Monday and this has helped augment the spread between Japan’s government bonds and the US 30-Year Bond, causing the USD to increase its investors. If the USD/JPY continues, then the next resistance target is expected to be at 105.526 points.

GBP/USD Fundamental Analysis: November 8, 2016

The GBP/USD is currently one of the most active currency pairs as of yesterday’s trading session after it plummeted from 1.2500 and settled below 1.2400 points after the most recent news regarding the FBI probe of presidential candidate Hillary Clinton’s e-mails. The GBP/USD is expected to further increase its volatility during today’s session up until the following days especially in the light of the upcoming US presidential elections.

If Clinton manages to win the elections, then could push the USD farther up the positive range and cause the pair to go lower, possibly even crossing below the 1.2300 range. This is highly possible since the sterling pound is not only the most volatile currency as of this writing, but it is currently among the weakest due to complications in the Brexit strategies of the UK government. The ongoing discussions regarding Article 50 might induce more risks and could make the sterling weaker as the discussions progress.

The UK Manufacturing Data is expected to be released during the European trading session, and this is expected to give traders a clearer notion of how the UK manages its Brexit complications. However, the entirety of the market is now monitoring the results of the US elections, and the USD is expected to become more volatile in the coming hours.

USD/JPY Technical Analysis: November 8, 2016

The Bank of Japan and the Federal Reserve did not release any important economic statements today, and investors from Japan are not expected to make any significant movements until after the US presidential elections. The USD/JPY pair is also expected to further decrease in value due to the most recent movement in oil prices. The USD/JPY pair further widened its gap during Monday’s session, increasing from 103.13 to 103.74 points due to gap traders triggering an increase in the gap value.

Meanwhile, the pair’s pricing was able to increase by up to 104.50 after the upward momentum for the pair decreased and is expected to be sustained until the end of the New York session. The 4-hour chart for the pair showed the USD going over its current moving averages, with the 50, 100, and 200 EMAs exhibiting an upward direction. Resistance levels for the support is expected to be at 104.50, while support levels are expected to be at 104.00 points.

MACD levels for the pair exhibited a drop in seller strength due to its increase. RSI indicators are still in the overvalued range but could probably go lower as the trading session progresses. The negative outlook for the USD/JPY could possibly fade if the currency pair goes over 104.00 points, and buyers could be able to increase their profits if it reaches 105.00. Conversely, bears might be able to induce the pricing to go beneath 104.00 points.

NZD/USD Technical Analysis: November 8, 2016


The kiwi hovered below the pressured area versus the US dollar since the FBI announced that the candidate of the Democratic Party, Hillary clinton was found ‘not guilty’ regarding the use of an illicit server during her term as the US Secretary.

The NZDUSD trade flat around a tight range yesterday. Buyers failed to stimulate the pair to a higher region, seeing the rising impetus to soften and shifted over a disadvantageous district. The NZ dollar is trading in the middle of the pair’s resistance and support at present.

As shown in the 1-hour chart, the 50-EMA placed a firmer support for the price while the NZD break the movement and plunged over. Moreover, the 50-EMA shifted to a neutral stance, the 100 and 200 EMAs established an ascending manner. Resistance is found at the 0.7350 level, support is seen at 0.7300 region. MACD subside which indicates a delicate position against the buyers. RSI settled in the overbought condition and further descended.

EUR/USD Fundamental Analysis: November 8, 2016

The market is keen and waiting for the U.S. presidential election on November 8 afternoon time in USA. The polls shown a tight competition between the candidates. Traders learned from Brexit that it is much safer to be on standby and wait for the results that is why there is less volatility yesterday until this day. This day determines the short term trend for various instruments which is being anticipated by market players.

Yesterday was bearish for the pair as the U.S. Dollars strengthened with traders aspiring Clinton to win. It posited at 1.1050 and 1.1031 physiological levels. Volatility is expected for the day with the bearish trend to continue as the election closes by. The financial market is positioning with Clinton winning as this is what they want which is expected to further strengthen the U.S. Dollars once the results are out. However if the Republican candidate Donald Trump wins the election, this is not what is expected that may cause a short-term turmoil in the market.

There are no other major economic news to be released neither from the Euro region nor on the U.S.A today. Everyone is looking forward for the election which is the focus for the past weeks bringing volatility today and tomorrow. It is presumed for other data to come out after the election results are out. It is advisable for traders to be keen in their positions with tight stop losses.

GBP/USD Fundamental Analysis: November 9, 2016

The international market has initially predicted an easy win for Democratic candidate Hillary Clinton, with predictions gunning up to 90% for a Clinton victory. However, come election day, this certainly was not the case, as Republican candidate Donald Trump is currently leading the polls by a significant margin and is taking the lead in key states such as Florida and Michigan. The GBP/USD pair initially traded at the 1.2350 due to anticipations of a Clinton victory, but was immediately shaken by an unexpected Trump lead, causing the USD to go over 160 pips, prompting the US dollar to start losing its strength. The USD is currently resting at the 1.2500 trading range, with the market currently consolidating and is bracing itself for a possible Trump victory.

With the present state of the US elections, a Clinton victory could still be debatable especially due to Trump leading most of the votes. The GBP/USD pair is expected to be significantly volatile in the coming hours leading to the close of the US presidential elections.

EUR/USD Fundamental Analysis: November 9, 2016

The EUR/USD pair decreased in value and went below 1.1000 as the USD strengthened due to initial market predictions of a Clinton victory in the US elections. However, Trump has eventually caught up and is now leading the presidential race, with Trump possibly taking Florida, one of the key states for this election.

This unexpected unraveling in the elections has caught the market unawares, causing the EUR/USD to go over 1.1100 and is currently resting within the 1.1150 range. The currency pair has now increased by over 160 pips over the last two hours of trading due to the unexpected turn of events in the US elections. Generally, the market is not in favor of Trump becoming the president, but the majority of US citizens seem to think otherwise.

Analysts are expecting that if a Hillary victory ensues, then its effect on the market would be somewhat muted since a Clinton victory is what the market expects. However, if the coin flips and Trump comes out as the winner, then its effect on the market in general would be much more adverse and much more violent and could possibly cause a significant increase in market volatility.