Fort Financial Services
Broker Representative
"Fort Financial Services"- fundamental and technical analysis
16.01.2015
Fundamental analysis
The US dollar was trading different directed against its main competitors. During the day the EUR/USD showed a high volatility. The EU court issued a verdict on the European Stability Mechanism legality that caused the euro sales as the ECB can now safely run the QE program.
During the day the pair GBP/USD enjoyed moderate demand amid the strong EUR/GBP cross-rate reduction as well as the US weak statistics. The strong bearish sentiment within the single European currency put pressure not only on the euro/dollar, but also on the euro/pound cross-rate that in its turn supported the demand for the British pound. The December retail sector sales rate decreased by 0.9%, the November report was also revised towards reduction.
The pair USD/JPY showed the sales decline amid the Tokyo stock exchange sales, but bulls returned to the market and began to open long positions. The US retail sales negative report sent the pair dollar/yen to 116.30.
Technical analysis
Euro (EUR)
General overview
The pair EUR/USD set a new multi-year low, reaching the level of 1.1590 after the European Court advisor’s announcement that the quantitative easing program can be carried out to the full extent.
Investors' attention is drawn to the Germany's GDP data publication for 2014. The Germany's GDP growth was 1.5% in 2014. In Germany consumer activity increased by 1.1% in 2014, but export volumes increased by 3.7%.
The pair EUR/USD was consolidating at the support level of 1.1770. Then it fell and broke the support levels of 1.1770 and 1.1690 and decreased to the level of 1.1590.
The price is finding the first support at 1.1590, the next one is at 1.1520. The price is finding the first resistance at 1.1690, the next one is at 1.1770.
There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a negative territory. The price is decreasing.
Trading recommendations
The seller need to break below 1.1590 for a steady decrease. The way to the mark 1.1520 will be opened after this breakthrough.
Pound (GBP)
General overview
The British pound can not demonstrate its power against its US counterpart.
The United States will publish the producer price index release, from which it is difficult to expect surprises due to strong commodity market sales that will support the pound.
The EUR/GBP quotations growth amid the Germany negative macroeconomic statistics will also support the British pound.
The pair GBP/USD broke through but could not fixed above the resistance level of 1.5200.
The price is finding the first support at 1.5100, the next one is at 1.5015. The price is finding the first resistance at 1.5200, the next one is at 1.5300.
The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement.
The MACD histogram is in a neutral territory. The price is correcting.
Trading recommendations
The pair may go to 1.5100 soon. The potential growth targets are the resistance levels: 1.5300, 1.5400.
Yen (JPY)
General overview
On the one hand, the US negative macroeconomic statistics will support the Japanese yen. On the other hand, the current levels already look attractive for opening long positions, based on the long-term upward trend continuation.
The pair USD/JPY rebounded from the strong resistance level of 118.00 downwards. The pair broke through the support level of 117.00.
The price is finding the first support at 115.80. The price is finding the first resistance at 118.00, the next one is at 119.20.
There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows a downward movement. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a negative territory. The price is decreasing.
Trading recommendations
The approach to the level of 115.80 may lead to a price consolidation.
*Analytical review is presented by the leading analyst of the broker Fort Financial Services, Alexander Kofman.
16.01.2015
Fundamental analysis
The US dollar was trading different directed against its main competitors. During the day the EUR/USD showed a high volatility. The EU court issued a verdict on the European Stability Mechanism legality that caused the euro sales as the ECB can now safely run the QE program.
During the day the pair GBP/USD enjoyed moderate demand amid the strong EUR/GBP cross-rate reduction as well as the US weak statistics. The strong bearish sentiment within the single European currency put pressure not only on the euro/dollar, but also on the euro/pound cross-rate that in its turn supported the demand for the British pound. The December retail sector sales rate decreased by 0.9%, the November report was also revised towards reduction.
The pair USD/JPY showed the sales decline amid the Tokyo stock exchange sales, but bulls returned to the market and began to open long positions. The US retail sales negative report sent the pair dollar/yen to 116.30.
Technical analysis
Euro (EUR)
General overview
The pair EUR/USD set a new multi-year low, reaching the level of 1.1590 after the European Court advisor’s announcement that the quantitative easing program can be carried out to the full extent.
Investors' attention is drawn to the Germany's GDP data publication for 2014. The Germany's GDP growth was 1.5% in 2014. In Germany consumer activity increased by 1.1% in 2014, but export volumes increased by 3.7%.
The pair EUR/USD was consolidating at the support level of 1.1770. Then it fell and broke the support levels of 1.1770 and 1.1690 and decreased to the level of 1.1590.
The price is finding the first support at 1.1590, the next one is at 1.1520. The price is finding the first resistance at 1.1690, the next one is at 1.1770.
There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a negative territory. The price is decreasing.
Trading recommendations
The seller need to break below 1.1590 for a steady decrease. The way to the mark 1.1520 will be opened after this breakthrough.
Pound (GBP)
General overview
The British pound can not demonstrate its power against its US counterpart.
The United States will publish the producer price index release, from which it is difficult to expect surprises due to strong commodity market sales that will support the pound.
The EUR/GBP quotations growth amid the Germany negative macroeconomic statistics will also support the British pound.
The pair GBP/USD broke through but could not fixed above the resistance level of 1.5200.
The price is finding the first support at 1.5100, the next one is at 1.5015. The price is finding the first resistance at 1.5200, the next one is at 1.5300.
The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement.
The MACD histogram is in a neutral territory. The price is correcting.
Trading recommendations
The pair may go to 1.5100 soon. The potential growth targets are the resistance levels: 1.5300, 1.5400.
Yen (JPY)
General overview
On the one hand, the US negative macroeconomic statistics will support the Japanese yen. On the other hand, the current levels already look attractive for opening long positions, based on the long-term upward trend continuation.
The pair USD/JPY rebounded from the strong resistance level of 118.00 downwards. The pair broke through the support level of 117.00.
The price is finding the first support at 115.80. The price is finding the first resistance at 118.00, the next one is at 119.20.
There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows a downward movement. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a negative territory. The price is decreasing.
Trading recommendations
The approach to the level of 115.80 may lead to a price consolidation.
*Analytical review is presented by the leading analyst of the broker Fort Financial Services, Alexander Kofman.