Forex Analytics By ForexMart

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I am Andrea, a ForexMart official representative. Me and my colleagues will provide you the latest Forex analytics on this thread to help you increase your trading efficiency. Thank you!

 

Unbroken Rise of USD/CAD The currency pair USDCAD doesn't seem to have any indication of frailness for three years.

It was in early 2014 when the pair generate a symbolic break out and pull back with a 4-year soaring fractal level. The rise was also supported by the robust ascending slope of 50 SMA(Simple Moving AVerage) and the stability of expanding price movement. Halting the bullish momentum by 1.30600, the unsuccessful resistance points by 1.17449

A buy position was guaranteed by the price on breakout of exalted fractal of 1.34963 level last week. The resistance level of 1.4000 will be the target of the pair within a short to medium period. It is going to be an advancement as the price will thrust forward towards 1.6111 by this level and will act as a long term target whereas the 50 SMA comport as a supporting indicator or behaving as a invalidation point.

 

The Cohered Aussie

The Aussie seems to have a good start in the morning of Dec.16, as it moved high. But it was a transient move as it goes down in the middle of the session activity. In the current quote of AUD/USD pair of 0.7197, many investors don't want to be a risk-taker, not until the Fed uncover its decision.

In an interview with Mr. Stevens, head of RBA, with the Australian Financial Review, he said that the further evident of unwavering economy of the Green Continent has seen by the regulator and the monetary politician referred to this.

Though it refused to support the mining sector, Stevens thinks that the deterioration in the Australian economic system will never breakdown. The operation has been proceeding persistently in four years now and appears to be unbiased in the current fiscal environment.

Recorded as a low figure, the interest rate of the Reserve Bank of Australia breaks down at 2% per annum. If the actuality permits, the RBA do not preclude the reverting to the enfeebled fiscal conditions and the series of depreciation withstand for four years.

The Gross Domestic Product has been fairly expected in the fourth quarter in Australia, compared to July-September. The Bank of Australia was not misguided in spite of the fact that China was added as a risk to these forecasts.

 

EUR/USD: Technical Analysis for December 18

In the current level of 1.0866 and 1.0722, that occur simultaneously with the Fibonacci retracement levels of 78.6% and 38.2%, the EUR/USD pair is trading in this level by now. By representing a ratio of 78.6% Fibonacci retracement levels, the 1.0866 level will notably portray as a sturdy resistance.

In addition, as it has always set under the resistance, the daily pivot point will be a minor resistance by 1.0849. Hence, it will be sufficiently lucrative to sell beneath th 1.0866 or 1.0849 levels and move down at 1.0722 and 1.0694. The binary lowest point will settle at the point of 1.0642 but the weekly report 1 has already took place at 1.0694.

However, we should always consider using a stop loss in a constant manner. And it be advisable to set it above the resistance level of 1.0866

 

Forecast For US Dollar: December 21-27 The USD reflected gains but in moderation in the past week. The result of the Federal Reserve’s meeting was considered more hawkish from what is expected by the market as the Federal funds rate range heightened by 25 bps and the 4 rate hikes that was announced for 2016 remains the same.

The Fed’s decision seems to be a sign of added support now for dollar after the net bullish position has been turned down in the first half of December and the currency has set right to the lower position. If we are to advance our judgment, we are seeing the possibility of the greenback to gain gradually within the medium term. The market’s peril sentiment must be supportive for American currency against the Euro, Yen and Swiss Franc as the stock markets have acted up well to the Fed’s rate hike.

See the US final Q3 GDP on Tuesday this week and a big block data which includes pith sturdy items and new home sales. Concurrently, year end flows will minimize the significance of principal drivers and can harm dollar. But then, stay focused on oil which is still very unpredictable. US dollar can be more profitable against commodity currencies as there might be more distant rejects.

 

Forecast for EUR/USD: December 21-27 The currency pair EUR/USD has failed to dwell on top of 1.1000 and was refused to 1.0800. To cause decline to 1.0730 and 1.0650, the bears need to shatter beneath this level. The resistance is at 1.0980, 1.1055 and 1.1100. These barriers seems sturdy.

The economic statistics from the Euro zone were diversified in the past week. PMIs happen to be in line with forecasts in general, but the German IFO business weather conditions index upset the escalating concerns regarding the region’s pioneer economy.

We will not see much news from Europe this week. The markets will be observing the Spanish parliamentary elections as the European Union encouraging Spain to produce new budget cuts in 2016, and the event can also generate volatility. As the second half of the week will be dedicated to Christmas holidays, there will be some insignificant data from Germany on Monday and Tuesday.

 

International Macro Overview For Dec. 23

The United Kingdom European Union or what we call “Brexit” will be an enormous dilemma and social resentment for the economy of the United Kingdom next year. As stated by Bloomberg news, 43% of economists are in favor with the declaration of this statement while 13% of them opt to generate votes on membership of the alliance and 39% of them are bashful but also agreed that Brexit might be the next huge risk.

A possible exit will have massive aftermath for the British pound and gilts, and with greater investor outflow from UK at the same time. The referendum may take place possibly by mid-2016 and by the end of 2017, though Prime Minister David Cameron didn’t settle the voting date yet.

At the level of 1.4895, the currency pair GBP/USD is trading at a slow pace in the middle of the trading scope underneath the significant technical resistance. The upcoming support was spotted at the level of 1.4806.

 

International Macro Overview For Dec. 28, 2015

In November, for the first time in five consecutive months, the Japanese robustness that was loosen all night reflect the ascended consumer prices.

More than the analysts had anticipated, the industrial production of Japan descend for the first time in three months also in November as exports diminished.

It is 1.6% much higher than the declared level of industrial output which is at -1.0% vs. -0.4%.

We can presume that BoJ Governor Haruhiko Kuroda may initiate further vigorous procedures early next month in the midst of the latest reports.

At the level of 120.35, the currency pair USD/JPY is solely bouncing off the significant technical support. The next resistance is seen at the level of 121.37.

 

NZD/USD Technical Analysis: Dec. 30

For three consecutive days, the New Zealand Dollar seems sturdy to manage two months highs contrary to its US counterpart beneath the 0.69 figure containing protracted rise. Implicating a big converse ahead, prices have also beaten on top of trend line resistance collecting gains since July 2014.

An open threshold was set for a challenge of the 61.8% level at 0.6932 as a daily close on top of 0.6884-97 area labeled by the 50% Fibonacci augmentation and the October 15 high. The intersection of the trend line and the Fib of 38.2%, serves as the road to a retrial of the 23.6% expansion at 0.6777. A turnaround beneath a support that was changed to resistance at 0.6777 alternatively.

There are conflicts arises as the risk and reward considerations argue versus getting a trade at current levels. Foremost, prices are unduly near to resistance to give rounds for getting into distant. Moreover, the lack of a vivid bearish reversal signal proposes obtaining up the short side is untimely. Lastly, the overly tapered available trading range related to ATR (on rolling 20-day studies.)

 

EURUSD Technical Analysis: January 4, 2016 The currency pair EUR/USD bear coercion escalated at 1.0795 zone, as quite all of its previous week has seen its reversal. The support level is at 1.0795 and anticipate further infirmity to take place towards the 1.0750 level if contravened.

A transgression will target the 1.0650 as the support resides at the 1.0700 level. Recessing here will target 1.0600 level. Its weekly RSI is quite descending and heading lower indicating more distant downside pressure.

Having a slash through the resistance of 1.0900 level, unlocks a door for additional upside towards 1.0950 level. Furthermore, a break will reveal the 1.1050 level as the resistance resides at the level of 1.1000.

Substantially, the EUR/USD pair bear pressure established on 1.0795 zone and its Dec.07 2015 is inferior.

 

Fundamental Analysis: January 5, 2016

The aggrandizement of the dollar against its primary competitor marked the last day of trading in 2015. Celebrating the Christmas season and the New year makes most of the traders to go off the market in advance. The frailty of US data did not succeed in stopping the EUR/USD pair from progressing. To the mark of 287 000, the weekly unemployment benefits increased by 20,000. As forecasted in economic news, it is not much less of the reported 49.8 as the Chicago Fed business activity index came in at 42.9.

The November private sector lending forge ahead by 1.4% in yearly duration which is the zenith level for the past year, according to the report of the ECB in the middle of last week. Owing to the fact of planned statistics, the Monday trading was stimulated. The industrial business activity was publicized by the euro zone countries. Germany surmount the inflation report of 0,3% y/y and -0,1% m/m versus the reported 0,6% y/y и 0,2% m/m. At the level of 53,2 contrary to reported 53,0, the Germany PMI in industrial business took place. Due to the reduction, the EURO/USD pair terminated the trades.

In opposition to the forecasted 0,5% m/m, the UK issued money provision report of 0,4% m/m. At the level of 51,9 contrary to the forecasted 52,7, the Britain PMI in industrial business took place. Boosting the demand for the pound, the 10-year UK government bonds yield is expanding analogously to their coequal from US and Germany. Nevertheless, the GBP/USD pair trades were terminated with a decrease.

The US assets investment appeal expands as the US and Japanese government bond yields divergence transcended the level of 200 pp. By the end of the day, the currency pair USD/JPY reflected an increased.

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