Daily Market Analysis from ForexMart

[Obasi FXMart]

EUR/USD Technical Analysis: July 18, 2018

The euro rallied at the beginning of the Tuesday session and reach up to 1.1750 prior to retreating back at 1.700 below, which were the trades began for the day. We can expect noise to be present in the pair considering that there are Brexit negotiations and a strong dollar. Yet, looking at the charts, clearly, it shows that the true resistance would be above 1.1850 while the floor of the pair can be found at 1.15 below.

Given the high frequency in trading, there is a huge amount of volatility in the EUR/USD pair. At the end of the day, the 1.17 level offers support which is a good indicator or further goes up on Wednesday. Also, the 1.1675 level offers support where there is also a high demand. I assume that the market will look for value on dips, especially for hunters. Yet, traders should still be careful in putting money at stakes. Hence, I would suggest to trade slowly and then gradually add more to reach new fresh highs.

In general, the pair could stay long in consolidation range which should be considered given that there will be a lot of noise and headlines could influence the pair for sudden movements.

 

[Charot FXMart]

The current contest has already started on July 16, 2018 and will end on July 20, 2018.

You can register for the next competition which will take place from July 23, 2018 to July 27, 2018 (Terminal time). .

Note:

Registration for the next competition finishes 1 hour before the contest starts.

 

[Obasi FXMart]

EUR/USD Technical Analysis: July 19, 2018

The euro against the U.S. dollar is traded slightly in the area of 1.1650 but profits can be gained during the European session. The uptrend took place in the early hours of Asian market session due to recent bullish trend across the globe booking profits on the dollar. Yet, the outlook of the greenback is still optimistic because of hawkish rhetorics from the U.S. Fed chair Jerome Powell, which would probably affect the European and American session. Stocks on major world market reached a one-month high on Wednesday after strong corporate earnings. Meanwhile, the U.S. surpassed the levels on a three-week high against major currencies with more bidding involving the dollar. Yet, the profit booking activity slowed down the momentum of the dollar for a while. According to Powell, the United States would go for a steady growth in the course of trading and held back risks of the U.S. economy on worsening trade conflict.

The dollar index grew towards 95.4, reaching a three-week high against other currencies and then settled in the area of 95.08 with an increase of 0.2%. Two more rate hikes are anticipated this year from the Federal Reserve in reaction to rising inflationary pressures. On the other hand, the ECB is presumed to raise their rates only in the middle of next year. The eurozone grew for the first time last year since the financial crisis between 2007 and 2008. Yet, the most recent survey of 100 economists results showed growth momentum has already reached the highest point. Nonetheless, the worsening trade war between the U.S. and their trading partners still presents real risks to the eurozone and influenced economists to lessen their growth forecast.

 

[Obasi FXMart]

EUR/USD Technical Analysis: July 20, 2018

The single European currency had broken down amid trading course on Thursday while a lot of negativity continue to be in this market. Forecasts say that the market would likely continue to be volatile but the market is determined to move lower near the 1.15 region, an area which has been a significant support in the past and a little bit of buying pressure can be seen in this zone. While the current point of at issue is whether or not traders can break down beneath that level. A successful break down will be a great destruction for the Euro.

Otherwise, a rally from that level and regain the 1.16 zone has a high probability to happen. In that case, we could determine a move on top of the 1.1660 region followed by a potential rally. We can see the overall consolidation below the 1.15 area, which serves as the floor and 1.1850 above as the ceiling of consolidation where we are currently fixed.

It looks like that we will be stuck in this range for the next couple of days or weeks since it's already mid-summer and there many large traders from all over the world who are out of their offices. Aside from that, there are also varying issues regarding the Brexit which causes trading quite noisy and difficult for the EUR/USD currency pair.

 

[Obasi FXMart]

AUD/USD Technical Analysis: July 23, 2018

The Australian dollar against the U.S. dollar trades a bit higher during the Monday session. A bit of a reaction was observed as the dollar weakened due to the added pressure on the Trump’s remarks to the Fed policy and his struggle with the strengthening of the greenback.

Investors reaction to Trump’s rhetorics lead to the tight trading of the pair against the different monetary policy between the hawkish Fed and a dovish central bank of Australia that makes the dollar appealing for investment to traders alike.

Also, traders are hesitant about their positioning prior to the weekly quarterly consumer inflation data of Australian and increasing Treasury yields from the U.S.

The major trend has decline based on the daily swing chart. The trend will move up on trades towards .7443 and if it further reaches the level of .7318, the downtrend is likely to continue.

Short-term trading of the pair will be between .7310 and .7484 with 50% pivot level at .7397. It seems that pair is being traded strongly at this level that could assist an early uptrend tendency. Traders should act on it to counter the support level on the first test today. However, if it fails to hold this level, the price could weaken with the main range at .7677 to .7310. If the trend goes up, then we can expect the retracement zone to be at .7494 to .7537 which will become the primary target in the upside.

On a technical aspect, the AUD/USD pair will be based on the reaction of the pair for short-term trading at .7434.

 

[Obasi FXMart]

USD/JPY Technical Analysis: July 24, 2018

Once again, the U.S. dollar dropped against the Japanese yen in day trading on Monday session. There was sufficient support found on the trendline and crossed below the level of 111 yen. It seems that the market is attempting to recover from here. Thus, a short-term bounce might still be far from happening. Predominant selling activity is due to the currency war but, nonetheless, hunters will still find this appealing to reverse the situation.

As shown on the chart, the price plunged to the uptrend line with intention to bounce up. This can actually be considered as a perfect test of the uptrend line and it looks like value hunters are will attempt to join the market now. A rebound can be bought but there will still be some noise around regardless of what happens next in the days to come. Hence, it is ideal to trade in smaller trade. Although there is sufficient amount of demand below, a lot of noise is present above. In long-term trades, there is a tendency of the pair to move because of the risk appetite. Therefore, in case that trade tension mitigates, the market might turn around.

On the other hand, if the market breaks lower than the uptrend line, the next target of the market will be the level of 110, which can serve as a support. Hence, it is likely for a correction to happen given the oversold condition of the pair, at least the in the next few trading sessions. Assessing the trend as a whole, there are higher risks on the upper channel than below but with high volatility around, traders should still be careful in trading this market.

 

[Charot FXMart]

The current contest has already started on July 23, 2018 and will end on July 27, 2018.

You can register for the next competition which will take place from July 30, 2018 to August 3, 2018

Note:

Registration for the next competition finishes 1 hour before the contest starts.

 

[Obasi FXMart]

GBP/JPY Technical Analysis: July 25, 2018

The sterling pound moved sideways amid trading session yesterday, with an exception for a slight reversal and bullish pressure. As of this writing, the ¥146 level above was unable to break. While the previous ascending trend line was broken through which stimulate a little bit of resistance. In case of a slice above the ¥147 region will prove the strength of the recovery. On the contrary, we can expect for a lot of sideways action in the near term.

There are forecasts that the area under the ¥145 will be supportive which would likely require some pressure to cut through that region. Generally, the market will contain plenty of noise with a slightly downward proclivity as to the concerns about trade battles and the like.

It should be noted that the GBP/JPY currency pair is very sensitive to global risk appetite alongside the added issue of political chaos in Great Britain, which slightly puts off this market downwards. The presence of some reversal is very difficult to deal with but if we reach higher than the ¥147 level, then new profits will pour in the trading place and would accelerate further. While a break down underneath the ¥145 level would probably open a way through the ¥142.50 region.

 

[Obasi FXMart]

GBP/USD Technical Analysis: July 26, 2018

The British currency drove higher amid trading course yesterday and attempt to grind above the 1.32 level. Generally, we can expect for the resumption of short-term pullbacks which may act as buying opportunities with a slower motion. In this case, shorting this market is not recommended due to the recent formation of some “basing pattern”. Also, there is a possibility of a move through the 1.32 region or 1.3250 eventually.

Traders should take note about the headlines which could possibly trigger issues with the sterling pound aside from the conflict between the Conservative Party and Theresa May, which argues for the common ground of the Brexit. Forecasts show that the market will begin searching for the level below 1.30 as the “absolute floor” of the GBP, hence, longer-term traders will buy the dips based on its value.

For some time, the pound became quite oversold and the “buy-and-hold” traders in the longer-term will return to the market to acquire benefits from lower prices. Ultimately, the dips can be seen turning around with impulsive trends and the top of 1.33 handle would likely be broken but may require a series of attempt to overcome that level.

 

[Obasi FXMart]

GBP/USD Technical Analysis: July 27, 2018

The British currency had initially rallied yesterday but the 1.32 region appears to be slightly expensive. Moreover, the level around 1.3150 would likely have a lot of support underneath. It may take some time prior the buyers to return and push this market higher. Upon clearing the 1.32 zone, it is possible to trail through the 1.3250 area. This market appears to be bullish in general, however, the political issues with Great Britain may cause problems for the sterling pound. In the longer-term, there will be some resolution to the political theater which could help to resume an upward trend.

According to forecasts, the level below 1.30 is massively supportive since the figure is characterized as large, round, and psychologically significant. As expected, the weekly charts showed that it rebounded, indicating a higher possibility of buying pressure in that region. That area could be the “floor” of this market and considered as the most appropriate zone to begin purchases if there is any intention to move back there.

 

[Obasi FXMart]

EUR/USD Technical Analysis: July 31, 2018

The single European currency paired with the US dollar and reach higher than the 1.17 region. But, we can see plenty of supply above that level which makes it interesting to break on top of the 1.1730 handle. With that, it indicates a move through the area of 1.1750 but it is hard to break higher until the release of news from the central banks as well as employment figures this week. It is believed that the market will extend to the upside while players search for some short-term selling opportunity in the past.

Aside from that, the market was in a symmetrical triangle and the jobs figure could possibly break out that triangle and we expect a longer-term trade play on Friday. Apparently, the entire scenario might change because of geopolitical issue or some kind of news, however, the market would likely continue to be noisy in the near term while it will be difficult to stay in the longer-term condition. A break above the 1.1750 zone will push the market on top of the 1.1850 region, which is the highest point of the overall consolidation in the longer term.

 

[Obasi FXMart]

GBP/USD Technical Analysis: August 1, 2018

The sterling pound rallied throughout the day on Tuesday until the American hours, because the British currency takes advantage of the rally ahead which is expected to be an increase in the rate. Forecasts show that the market will resume to be very noisy or continue the “buy the rumor, sell the news.” The level 1.32 would likely be resistive as well as the area of 1.33.

Meanwhile, short-term pullbacks have high chance to happen and in case that the Bank of England will not lift its rates tomorrow, then we can expect for a decline. Generally, the market establishes some kind of “floor” around the 1.30 zone but when the BOE will do something negligent, then a lot of support can be seen.

The buyers of dips anticipate moving over the 1.35 mark in the longer-term. Nevertheless, we should clarify such scenario with the Brexit prior making that move. Indecision might prevail over this market, so traders should keep their trading positions approximately small.

A break down underneath the 1.30 zone will test the 1.29 region consequently, hence, a break down to the downside will be extremely negative. The slightly positive bias range bound system is believed to be the best way to deal with this market.

 

[Obasi FXMart]

GBP/USD Technical Analysis: August 2, 2018

The British currency had a pullback earlier amid trading course yesterday, however, the level below 1.31 seems to be supportive and rebounded within 30 pips through the American session. According to forecast, the 1.31 region will continue to have support with the involvement of the Bank of England, since such large moves are impossible with this market. Moreover, the short-term pullbacks would likely open doors for buying opportunities, but the next scenario will be determined by the statement from London. Interest rate hike is further anticipated, making the statement more attractive to the traders’ attention.

When the UK’s central bank lifted its rates in the future, the British pound will gain optimism but it seems to be some kind of “one and done” scenario and may result to some selloff. The 1.32 region above will be the resistance, but a cut through on top of that level would push a move higher.

While a gap lower than the 1.31 mark would search for a significant support around 1.30 zone. An area that is considered to be supportive in the longer term and could offer a lot of opportunities to acquire major value.

 

[Charot FXMart]

The current Money Fall contest has already started on July 30, 2018 and will end on August 3, 2018.

You can register for the next competition which will take place from August 6, 2018 to August 10, 2018

Note:

Registration for the next competition finishes 1 hour before the contest starts.

 

[Obasi FXMart]

EUR/USD Technical Analysis: August 3, 2018

At the beginning of Tuesday session, the euro dropped sharply with the support level found at 1.16, which is the bottom of the symmetrical triangle as a large round psychological number. Hereinafter, it won’t be long before the market attempts to break out of the symmetrical triangle since the jobs data will reach it. If the pair breaks the level of 1.16, the market could slide down towards 1.15 where there is an important support. Moving around, the pair breaks higher than 1.1750 that offers resistance and breakthrough on this level would push the price towards 1.1850.

It is not unexpected that the pair will move in the middle of the symmetrical triangle after the trading session with the release of jobs data. There is a lot of noise in the market amid the subdued month of August that slowed things down. It seems that there is a massive support at 1.15 and it will be a significant event for a break lower. It is likely for the price to consolidate in the next few weeks. In this case, a breakout on the symmetrical triangle will dismiss it.

 

[Obasi FXMart]

USD/JPY Fundamental Analysis: August 6, 2018

The USD/JPY currency pair trades slightly lower on Monday morning, however, the pair was able to keep its position above the Friday’s low. The market lost its entire gains after accelerating to 112.152 level and followed by the Bank of Japan’s decision on monetary policy last week.

While both monetary policy decisions of the U.S. Federal Reserve and Bank of Japan neutralized each other last week and much of the price activity favored safe haven purchases linked with the increasing trade battle between China and the United States.

Another factor that contributed to the weakening of the USDJPY was the U.S. Non-Farm Payrolls report that came mixed on Friday. The US labor growth further declined than predicted in July, but the weak jobless rate indicates that the job market conditions tighten. The traders of the dollar/yen pair continue to observe the U.S. Treasury yields as it dropped on Friday after the labor report. Also, the insufficient economic data on Monday allowed the USDJPY investors to focus on the U.S. Treasury yields and such developments with the trading relationships of the US and China.

Moreover, the expected direction of the USD/JPY for today can be identified by the trader's respond towards the 50% to 61.8% retracement zone at 111.459 to 111.295 in the near term. A sustained move at 111.459 would likely create the required impetus for an upside bias, while a sustained trend below 111.295 indicates the existence of sellers.

 

[Obasi FXMart]

GBP/USD Technical Analysis: August 7, 2018

The sterling pound had a significant break down as this week started along with some current issues regarding the Brexit. However, the trend for the next day seems crucial. The level below 1.29 is massively supportive according to the longer-term charts, which serves as the bottom of the zone in FX markets. Hence, a break down under that zone will indicate a longer-term sell signal.

On the other hand, a reversal and a rebound would prompt buyers to return and pick up some value. This will further heighten some optimistic news from the United Kingdom which involves Brexit.

The next target for a break down is the 1.2750 region or the 1.25 level eventually. The GBP remains to be difficult to deal with due to a lot of concerns regarding its economy. While volatility can be reliable for the pound/dollar for some time.

 

[Obasi FXMart]

USD/JPY Technical Analysis: August 8, 2018

The U.S. dollar slid down against the Japanese yen to rise on Tuesday, although, there is a bit of noise down below 111 that could reverse the situation and appeal to buyers to jump in. Concerns on trade war continue to prevail on the market, which can be viewed as “ground zero” on the headlines. It may not take long before the traders turn around that can be influenced by the headlines going out.

Risk appetite moves along with the pair which should be always kept in mind. It is logical that the trading activity will take place in this area in the next 24 hours but if the price breaks lower than 111, there is a possibility for a break down lower than 111. There is a chance if the price moves down to 110.50 and even further to 110. Moving up, the level of 112 offers a lot of resistance and currently, a return to the recent highs may be my target but it is not necessarily a big move to the north, at least not until the trade war between China and the U.S. is settled. There is a high optimism in trading for short-term and traders should expect for choppiness and range-bound trading that is already common at this time of the year.

 

[Charot FXMart]

The current Money Fall contest has already started on August 6, 2018 and will end on August 10, 2018.

You can register for the next competition which will take place from August 13, 2018 to August 17, 2018

Note:

Registration for the next competition finishes 1 hour before the contest starts.

 

[Obasi FXMart]

USD/JPY Technical Analysis: August 15, 2018

The American currency attempted to rally amid trading session on Tuesday, however, the level above ¥111 appears to be very resistive to resume an upward movement. And this does not surprise the market at all since this area had some previous selling. At this moment, the market would likely find enough reason to respond to the current situation of Turkey.

Aside from that, another issue to worry about is the global trade conflicts which involve the United States and China. Eventually, finding a resolution to the current situation will enable the interest rate outlook and interest rate differential of both countries to engage actively in the market. With this, the main focus should be on trade when it comes to the USD/JPY currency pair but when factors involving the USD will ease, there would be a resumption of support. As the market would likely continue to favor this scenario due to increased US interest rates against the difficult status of the Bank of Japan for not being able to imply rate hikes in the future. The ¥110.25 level provides an initial target to the upside, followed by a move towards ¥112 level. A break down from that point, the level below ¥110 should be supported.