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Messages - Andrea ForexMart

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   The USD/CAD pair has returned to its downtrodden price action as the Canadian economy released some very dismal data on the back of a steadily dropping oil prices. The currency pair was unable to surpass the very critical trading range of 1.3300-1.3330 points, thus stopping it from making any advancements towards 1.3500 and instead caused the currency pair to return to its downtrending price direction.
 
   With the present state of the currency pair, it is now evident that the USD/CAD pair will be unable to make any decisive rebounds at least for the time being. The Canadian economy continues to throw some consistently good economic data, signaling that the country’s economic outlook remains on the positive. All this, including a highly positive retail sales data from the region could increase the chances of the Bank of Canada implementing an interest rate hike before the end of 2017. The central bank had previously hinted of this possibility a few weeks ago, and this further added to the downward pressure on the loonie. Oil prices have also managed to hold their ground in spite of its continuously weak outlook, with this oil prices the only thing stopping the USD/CAD pair to go full on with regards to completing its downturn. As of now, the USD/CAD pair is still continuing with its downtrend and if this further progresses, then the loonie will possibly reach 1.3100-1.3000 in the short term period.
 
   For today’s trading session, the Canadian economy will be releasing its CPI data, and if this turns out to be positive as well, then this could enable the USD/CAD to drop further towards 1.3100 points.

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AUD/USD Discussions / AUD/USD Technical Analysis: June 21, 2017
« on: June 21, 2017, 04:24:47 PM »
 
The Australian currency attempted to initiate a rally amid the day and reversed to sell off. The 0.7575 mark was being tested due Aussie’s actions, hence, it provides a significant amount of support. In case that a breakdown occurred beyond that point, the market will be pushed down through 0.7550 region which is an interesting area in the past.
 
The market will keep on reaching the 0.765 handle when a bounce happen and when it break into the upside will drove near the region 0.7750.
 
At the end of the day, the market will continue following its risk appetite and traders should watch closely what will happen within that point. The central bank of New Zealand is expected to release a statement about interest rates scheduled today while the Aussie dollar will seek the same path.
 
Moreover, gold markets remain to be in a downbeat which can be felt by the AUD as well. With this, players should search for a support below prior the rebound. As the market still have challenging nature to deal with because of the many bits and pieces moving around, particularly the plan of the Fed Reserve to increase rates.
 
Above all, the pressure brought by the precious metal, gold paired with the general outlook on risk tolerance is projected to wrought a chaotic situation over the market.
 
In this event, it is complicated to determine where to go next as the consolidation is anticipated to keep going.

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General Discussion / USD/CAD Fundamental Analysis: June 20, 2017
« on: June 20, 2017, 06:08:19 PM »
 
   The USD/CAD pair continues to consolidate within its range lows as the loonie makes another attempt to recover its losses and possibly trigger a bounce in its value. Now that the Bank of Canada is more than eager to help the Canadian economy make a 360-degree turn, the pair’s bulls will be in for a hard time as it tries to induce any kind of price bounce. Should the pair manage to create a bounce, then this should be viewed as a selling opportunity and should not be taken as a trend adjustment.
 
   On the other hand, oil prices are still trading within its bottom rungs and remains weak as of the moment, however the CAD seems to be unaffected by this and has still managed to look very positive and has remained trading in a very positive manner. The CAD will only be able to gain some measure of short-term strength if the oil prices will be able to recover in the short run, and if this happens, then the USD/CAD pair might be able to make a substantial attempt to go beyond the critical range of 1.3000 points. The currency pair has weakened significantly ever since it surpassed 1.3500, with this region signalling a trend shift. The fact that the currency pair is still doing very well in spite of a drop in oil prices and dollar strength just goes to show how much of a change has happened within the price action of the USD/CAD pair. Meanwhile, the economic releases from the Canadian economy has showed consistently positive readings, with the BoC announcing its plans to help keep the country’s economy on  the upside.
 
   For today’s trading session, there are no major releases from the Canadian economy, and the USD/CAD pair is expected to range and consolidate on both directions of 1.3200 points.

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General Discussion / USD/JPY Technical Analysis: June 19, 2017
« on: June 19, 2017, 05:09:21 PM »
 
The U.S. dollar against the Japanese yen climbed higher during the Friday session. There is a massive resistance found in the 11.40 level to reverse the trend followed by a decline. A neutral candle is formed for the day although the market is trying to gain momentum as they are trying to recover following the drastic move in the upside on Thursday.
 
The Federal Reserve is being hawkish more than expected which is favorable for the greenback since the Bank of Japan moves contradictorily when it comes to monetary policy. The 110 region remains supportive which would most likely become the floor of the market.
 
For now, it is advisable to short this pair to take advantage of its short-term decline and rendering more support for every short-term credit. This is still not finite and the trend could decline anytime although the next move would most likely be in the upside reflecting the impulsiveness of the market. Hence, buying is much more practical in the current market condition.
 
The initial next target would be at 112 then 112.50 level. For long-term, the trend could reach as high as 115 region although it might take longer to achieve this. There is also a tendency for the pair to be volatile which is not surprising. It is good to trade this pair in the current market as it could also benefit the greenback traded against the yen since the BOJ is dovish and most likely continue for a longer period of time.

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General Discussion / EUR/USD Fundamental Analysis: June 16, 2017
« on: June 16, 2017, 01:38:04 PM »
 
   The EUR/USD pair exhibited a correction during the past 24 hours as the US dollar regained its strength following the recent Fed rate hike. This was pretty much expected for the EUR/USD pair once the London session commenced and were able to react on this recent development from  the US economy.
 
   The market faced a slight disorientation halfway through yesterday’s NY session as the Fed mulled over whether it will still push through with its planned interest rate hike in spite of a series of disappointing economic data from the US. Luckily, the central bank decided to go ahead and push through with the said hike and even chose to shrug off the weak economic data as a mere one-off and instead kept its focus on future rate hikes as well as the overall economic health of the country. This gave off a bullish undertone to the market, and the market responded accordingly by triggering a massive dollar buying across all currencies. As a result, the EUR/USD pair sank through 1.1200 points and spent a short while at the 1.1160-1.1170 support range, and although the pair was met with some buying within this range, this buying lasted only for a brief period and the pair eventually dropped towards 1.1130 points before finally settling at just under 1.1150 points, where it continued to trade in a very weak manner, with its next short-term target located at 1.1100 points. There were some positive data coming in from the EU, while the IMF also stated that the EU economy seems to be consistently improving, but so far this has had no effect on  the EUR/USD pair.
 
   For today’s trading session, there are no major releases from the eurozone while the US economy will be releasing its building permits data. The dollar is expected to remain trading in a consistently strong manner which could put additional pressure on the EUR/USD pair.

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General Discussion / USD/CAD Technical Analysis: June 15, 2017
« on: June 15, 2017, 05:59:02 PM »
 
The U.S. dollar against the Canadian dollar declined during the Wednesday session. It broke lower than the 1.32 level. However, there are still concerns in betting this pair considering the possibility of a rally because of the speculations to the Bank of Canada to tighten its rates or lessen its quantitative easing.
 
Generally, the market is focused on various factors. One is the oil market which has an impact on the Canadian dollar. There is a chance that the central bank would have a drastic change to the price trend to support the Loonie. Currently, there is uncertainty in the oil market that the investors should closely monitor besides other economic problems.
 
Furthermore, what the Federal Reserve is doing would have an effect to the trading market and just recently, there was a sell-off in the pair for the past few days which could unexpectedly turn into bullishness instead of bearishness. Three handles have already been lost indicating strong moves over the last three days. This makes other currencies to be traded easier. However, if the Federal Reserve made a surprising move to raise its interest rates for the second half of the year, the market will turn into chaos and surge to the upper channel along with the Japanese yen major pair against the greenback.

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General Discussion / EUR/USD Fundamental Analysis: June 14, 2017
« on: June 14, 2017, 03:54:17 PM »
 
   The EUR/USD pair merely continued its tight trading action during yesterday’s session as the market braces itself for the announcement coming from the FOMC scheduled for today. The currency pair had initially attempted to move towards the bottom if its range but was immediately met with some large-scale buys in the 1.1160-1.1180 range, prompting the currency pair to revert to its original range.
 
   During the previous session, the most important region for the pair’s bulls and bears was the 1.1200 trading range, with the currency pair managing to close down yesterday’s session at just over this particular range. However, this would all be futile if ever the Fed decides to implement another interest rate hike and release a very hawkish statement. As of the moment, the market has priced in a 90% possibility of rate hike, with the Fed neither confirming nor denying rumors of a possible interest rate hike. The market has taken this as a positive signal from the Fed as far as the rate hike is concerned, and this is one of the reasons why the EUR/USD pair is now trading within its range lows paired with somewhat tame bounces in between as the USD continues to hold on to its current value. Now that the rate hike is already priced in, the market will now be shifting its focus towards the FOMC statement, where the central bank is expected give clues with regards to the next rate hike. The next scheduled rate hike was initially scheduled to be implemented this coming September, however a series of negative data from the US economy has caused doubts on whether the central bank will be indeed pushing through with the next rate hike.
 
   Aside from the FOMC rate announcement, the US economy will also be releasing its retail sales data and CPI data, both of which are expected to induce volatility levels into the EUR/USD pair. However, since the market will be focusing today on the rate announcement, a volatility surge is expected right after the release of the FOMC statement.

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General Discussion / EUR/GBP Technical Analysis: June 13, 2017
« on: June 13, 2017, 04:37:18 PM »
 
The Euro against the British pound move sideways during the Monday session. It broke above the 0.88 handle as the market continues to sell off the currency. This is a significant move while it seems that the market is not ready to retreat. Pullbacks would then attract more buyers and the 0.88 region below continues to be supportive.
 
However, if the price breaks lower and the gap is filled, this could send the price lower as low as 0.8650 and lower. Some pullbacks would open buying opportunities indicating massive support below. There is still a possibility to move higher towards the 0.90 level which hints as a significant psychological level.
 
The British currency has depreciated which drags the pair more than the other. On the other hand, the Euro is steadily moving in the market. The impulsive action is most likely driven by the pound more than other aspects. The uncertainty persists in the market which entails the pair could climb higher.
 
The 0.90 region gives off a significant resistance and a break over this would provide more long-term opportunities. It may not be wise to sell this pair since there are other things to consider in selling off this pair. However, if the pair breaks in the base of the breakdown, this would significantly shift the movement which could induce selling and this is not gonna be good for the pair. 

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EUR/USD Discussions / EUR/USD Technical Analysis: June 13, 2017
« on: June 13, 2017, 03:37:08 PM »
 
The European Central Bank decided to stabilize the apple cart and did not talk about the withdrawal of Quantitative Easing turning the focus towards the talks regarding Brexit and politics. Italian elections were delayed which helped yields from Italy to decline on the back of an extensive narrowing of spreads followed by the dovish remarks pronounced by M. Draghi.
However, lots of political challenges remain in the future.
 
The anti-European forces appeared to be inactive while in Catalonia, Spain threatens the stability of the Spanish country due to the independence referendum planned for October 1.
 
The debt relief of Greece continue to hang in the Euro region and this is the expected major topic in the EU meeting scheduled on Thursday.
 
The EURUSD tried to move higher but failed to reacquire its previous resistance found at 1.1227 level close to the 10-day moving average.
 
The exchange rate indicates the second day of the Doji formation that further shows uncertainties where the close and open levels are in the same range.
 
Moreover, the pair seems to generate a  head and shoulder reversal pattern which starts to produce the right shoulder followed by the left and lastly the head which resistance region entered the 1.1285 area.
 
Prices in the previous weeks failed to break 1.1299 mark seen around the November 8 highs. The major’s near-term support holds 1.1109 near the lows of May 29.
 
The momentum became negative since the moving average convergence divergence (MACD) develops a sell signal to take a crossover. It emerged because the spread crosses underneath the 9-day exponential moving average. The histogram shifted to negative grounds from the positive territory establishing a sell signal. The index also prints in the read paired with a descending trajectory that points towards a lower rate of the EUR/USD.

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General Discussion / GBP/JPY Technical Analysis: June 9, 2017
« on: June 09, 2017, 06:17:20 PM »
 
The British pound paired against the Japanese yen had a volatile session during the Thursday session. This is not surprising because of the U.K. parliamentary elections. Although, traders are not sure what is the general attitude of the market regarding Brexit leaving uncertainty in investors.
 
Towards the end of the day, the pair rallies forward with 61.8% Fibonacci retracement level close to the 142.75 handle. Low levels have been higher which could continue to go up. The 143 region is starting to be strongly resistive and if the market is successful in breaking this level, the price could move higher. As of now, the market is still in consolidation.
 
However, if the price fell down to the 142 handle, there are more buyers interested in this pair. If the market is successful to break out in the upper channel, it will suggest a “risk on/off” sentiment which is a common reaction here. Traders should be cautious to avoid losses since they could incur bigger losses if not careful. Same goes for the USD/JPY pair and position in smaller trades which is relevant for this pair.
 
Nevertheless, it is also a good move to buy the pair for long-term but still with some caution before posting large orders since the market is still unstable. It is safer to wait until next week or after the results of U.K. election.

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General Discussion / USD/CAD Fundamental Analysis: June 9, 2017
« on: June 09, 2017, 05:16:30 PM »
 
The events happened yesterday unexpectedly wrought a slight impact against the USD/CAD, as well as to other currency pairs. However, there are predictions that it would be an explosive day yesterday due to incidents lined up while traders work late at night to secure a safe position and to keep their trades well but everything turned out to be less impressive and unexciting.
 
The said events are as follows; the decision of ECB to hold its rates paired with the announcement on inflation targets and increasing growth outlook, though it is obviously has nothing to do with the pair. Next is the testimony of Comey after he accused US President Trump with lots of things.
 
These scenarios were unable to move the dollar and any movement only indicates an insignificant strengthening of the greens that lead the USDCAD near 1.35.
 
In relation to the Canadian dollar, BOC Governor Poloz delivered a speech expressing his delight about the current condition of their economy. He also stated that he was comfortable regarding the price trend in the housing industry. The neutral tone strike by Poloz reflected towards the commodity-linked pair which continuously trades in a steady and unspecified direction.
 
Later this day, the Canadian employment figures is anticipated to be release that would likely cause volatility. If the report showed a stronger result, it would help the pair to reach the lows of its tight range close to the 1.3450 level.

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GBP/USD Discussions / GBP/USD Technical Analysis: June 7, 2017
« on: June 07, 2017, 05:50:13 PM »

The GBPUSD had attempted to rally yesterday, however, retreated to the level 1.2950 to return underneath the 1.29 handle. In the past few sessions, the market appeared to have a little bit of overall bullish pressure, waiting for the results of UK elections expected tomorrow. In this case, the market will probably experience choppiness and unprepared to conduct a significant move yet. Short-term volatility is predicted along with some choppy spots but a general ascending momentum should also be anticipated. It does not mean that a pull cannot be accomplished, it only implies that longer-term charts and the range below 1.2750 should offer massive support that will surely lure the attention of the majority of market participants.

After the session on Friday, the long-term outlook for the pair shall be available as it could be very difficult from this moment and the next.

Buying the dips remains to be the best option for the Cable but the dips showed to be somewhat steep. You should have got small positions as of now and after the election results in order to acquire lesser damage that might suddenly arise.

Markets have lots of speculation regarding the election decision, therefore a cool level head should be maintained as this is crucial for the following sessions.

In the longer-term, the pair might break the 1.3050 mark as it allows the market move higher freely, or maybe reach its long-term target found at the region 1.3450.

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General Discussion / NZD/USD Technical Analysis: June 7, 2017
« on: June 07, 2017, 04:27:23 PM »

The NZDUSD rallied amid trades on Tuesday and broke the level on top of 0.7150 smoothly. The Kiwi dollar continued to search for buyers on dips and tend to handle some pullback as an opportunity to increase rate.

The market tried to touch the region above 0.72, en route 0.75 afterwards. As shown in the chart, the area around 0.71 handle provides a lot of support and regarded to be the floor of the market in the near-term uptrend. The commodity space continues to weigh on the market and the NZD seems to be the “barometer” towards the overall sentiment of futures trading. Watch closely for the commodity because it could possibly show the way.

It could be a good move to buy dips moving forward because it suits the current status of the New Zealand currency. Selling remains impossible as far as we breach under the 0.71 mark. A successful break down prompts the market to reach the range below 0.7050 which is very supportive previously, along with the 0.70 region. In any case, the market remains to be volatile, however, the moving averages came in reliable, particularly the 48-hour MA shown in green color, hence it should offer further buying opportunities.

The volatility driven market persists, but the late impulsivity indicates that buyers begin to develop more confident as it moves ahead. Moreover, the dips will provide value which is an advantage to market participants.

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General Discussion / GBP/JPY Technical Analysis: June 6, 2017
« on: June 06, 2017, 06:50:21 PM »

The British pound against the Japanese yen broke on the lower side during the Monday session which was upturned indicating bullishness in the trend. It is directed towards the 143 level and higher up that fills the gap. There is a robust resistance seen in the previous trades that makes the reversal unexpected. However, if the price is set higher, this would persist to an elevated level pointed to the 144 region.

It is anticipated to have volatility for this pair regardless of the next move since the market is in a “risk on” or “risk off” sentiment. Moreover, the British elections worsen the situation as it affected the British currency that brings unpredictability in the market until the election on Thursday. Other global economic concerns will also affect the trend.

Volatility is the current focal point of the market and if it gaps more than the 143 region, more buying opportunities will come out for the market. However, if the election polls showed conservatives leading in Britain, this push this pair aimed higher with chances to break higher than the 144 region then shift towards the 145 handle.

Traders should not expect that trading this pair would be easy that makes trades on small positions to be ideal for this pair or one could opt to wait in the sidelines as GBP/JPY is one of the pairs risky to position in the market.

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General Discussion / NZD/USD Technical Analysis: June 6, 2017
« on: June 06, 2017, 05:43:09 PM »

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

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

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

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

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