Thread: Daily Market Analysis from ForexMart

The strength of the greenback has been the dominant market trend during the previous trading session. In addition, the bulls of the GBP/USD pair are also having a hard time with regards to keeping the value of the cable pair afloat, which is seen on how the bulls had repeatedly attempted and failed to break through 1.3030 points even though the USD has clearly dropped in value. This development shows just how the bears are slowly gaining the upper hand with regards to taking control of the cable pair.

But on the bright side, the drop in the cable pair’s value was not as much of a crash as initially expected since the pair’s drop has been somewhat slow and steady. But then again the corrections of the pair is now starting to get more significant, while its reversions are becoming more and more shallow, which is an indication that the pair’s bears are indeed taking over the currency pair. The GBP/USD pair was unable to even reach the 1.3000 range as the greenback starts to regain more strength due to the market re-pricing the interest rate hike next month.

For today’s trading session, the market is expecting the release of the Preliminary GDP data and the durable goods data from the US, while the British economy is not scheduled to have any economic releases for today. The GBP/USD pair is then expected to remain under pressure for the entirety of today’s trading session.

The Euro against the British pound had a very choppy trading during the Thursday session as the market is attempting to push the price higher which could eventually break later on. There are also some pullbacks seen in the short-term which supports the current trend and gather enough impetus and volume to reach higher levels. If the price breaks higher than the 0.8675 region, the current trend will move upward reaching the 0.88 level that is relevant for long-term as shown in the charts.

Those reversals would gain more appeal to the buyers as it closes near the 0.86 support level which was supportive in the past. There’s an option to wait for a breakout first to lift it higher which implies bullishness in the trend which is beneficial for buyers.

The market is choppy influenced by the two economies and commentaries from both countries bringing a lot of noise in the market. Yet, the trend remains resilient as it is directed upwards although there are pullbacks every now and then. If the price breaks lower than the 0.8550 region, the market is anticipated to roll over. This is most probably because of major events which are usually unexpectedly fast when it happen. Overall, the buyers seem to dominate the market.


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The British pound paired against the Japanese yen declined during the Friday trading session following the release of election polls much tighter than expected in Britain. Everybody expects the political route the way forward when it comes to leaving the European Union still leaves some doubt in the minds of the people.

The pair is usually sensitive to risk appetite that worsens the selling pressure. As the price breaks through the 143 level, the price would decline much lower towards the 142 handle as the market reaches to the support below. If the price surges from here, this would open more selling opportunities.

Traders should monitor the global risk appetite including the stock market, futures market and the condition of the British government and its currency, as these would affect the pair. As of now, the pair is moving downtrend searching for a significant level at 1.2750.

If the pair is able to stay in the upper region, the current trend could be reversed to find support below. Alternately, the price could decline towards the next significant support at 140 handle. Buyer should look to the long-term charts before placing orders. Overall, the market will be highly volatile and traders might want to consider major pairs related to the British currency for a faster turn around.


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The New Zealand dollar against the U.S. dollar has had a flat trading in early Friday but when the buyers returned, the price rose towards the 0.71 handle and above. Short-term pullbacks offer value in the market as the market tries to reach higher levels.

The 0.70 level gives off massively supportive until the price breaks lower which makes it complicated selling. Buyers will proceed with going long as the market is open climb higher although the pair is still involved with high risks. It is anticipated that the pair will most likely decline from here onwards that makes the pair more susceptible to risks.

There is a strong upward pressure for this pair and volatility would increase even more. The New Zealand dollar is highly sensitive to the overall commodity market that makes is important to monitor the commodity market not necessarily a certain commodity market.

There is high volatility in the market which will reflect in trading this pair. With the political concerns from the Washington, D.C., the pair is expected to be influenced despite its almost daily occurrence. Hence, traders should still be cautious that makes short-term trades more advisable to trade to make through the current problems concerning this pair.

The U.S. dollar against the Japanese yen declined during the Friday session. It reached the lowest level of 110.80. If it bounced back, this will signal a bullish trend but this would not be easy to attain as there is high-risk appetite especially for this pair. The 110 level gives off a massive support but is the pair breaks lower, the next level would be at 108 region at a quicker pace because there is a still remaining gap that has not been filled.

In the long-term, this pair will most likely go higher although it may take some time since the 112.50 is strongly resistive. A break higher than this region would be beneficial for scalpers to take advantage of bulls interested in the U.S. dollar.

Traders of this pair should monitor the S&P 500 index as this would have a big influence to the pair. If the index rises, this pair follows. Moreover, the chances for a Fed rate hike puts a bullish pressure for the pair. If it did not take place, it might be a problem for the pair although it is most likely that this would happen with its stature at stake.

Pullbacks every now and then offer long-term opportunities but for short-term, this gives off bearish volatility/ This could persist for some time especially with the major events concerning geopolitical problems occurring from Europe and the U.S.

Overall, the pair moves in an uptrend from 110.23 level and a decline from 112.13 will indicate a correction. It is expected to rise again following the correction towards the 113.50 level. The near-term resistance is found at 111.70 and a break to this level would mean a continuation of the uptrend. On the other hand, the support region is positioned at 110.80 and 110.23 and a break from these levels would push the price back again from 114.36 level.


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It was a market holiday on several parts of the world yesterday, and the absence of market volatility due to the said holidays was felt throughout the market during the previous session as most of the major currency pairs consolidated and traded within a very limited range yesterday. EUR/USD traders had only one thing to look forward to during the duration of yesterday’s session, which is Draghi’s speech wherein he made his usual statements on the lessening of downward pressure on the EU economy, although this had little effect on the EUR/USD pair’s current standing.

What affected the value of the currency pair was the news that Greece is now prepared to abdicate the following bailout fund if the EU will still be unable to reach middle ground as far as the conditions were concerned. This then caused the EUR/USD pair to correct towards 1.1120 points during the latter part of yesterday’s session. As of the moment, the market is still experiencing very low liquidity levels as the Chinese market remains to be on a holiday, and as such, traders are advised to take all market movements today with a grain of salt. In addition, the market will also be experiencing month-end flows before this week comes to a close, and this is why traders should take it easy in order to prepare themselves for the onslaught of economic data later this week. The Fed rate hike in June is still not fully priced in, and unless the market gets some sort of conclusion with regards to the Fed’s next move, then it will be very hard to determine the short-term price actions of the EUR/USD pair. But the recent correction of the EUR/USD pair should be taken only as a mere correction instead of a full-on trend change as corrections are deemed as normal in every currency pair.

For today’s session, the market is expecting the release of Germany’s Preliminary CPI data, as well as the PCE data from the US economy. The PCE data will be closely watched as this will indicate whether the Fed will be indeed pushing through with its rate hike or otherwise and could possibly induce a lot of volatility into the market within the day.


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In a sea of otherwise very inactive major currency pairs, the GBP/USD pair seems to be the only pair which has gained significant volatility during yesterday’s trading session. The cable pair shot up by over 40 pips in spite of a market holiday across several locations throughout the world such as the US, UK, and China. The lack of market activity yesterday gave the pair’s traders an opportunity to induce a bounce in the pair although it was unable to offset the 150-pip crash of the cable pair during the session last Friday. In spite of this recent reversal, the GBP/USD pair is expected to remain trading in a very weak manner as a lot of economic factors seem to be going against the sterling pound at least for the time being.

Members of the ruling political party in Scotland have recently outlined the possibility of a Scottish referendum if ever they get reinstated in the Scottish government. But then again there have been recent rumors swirling around with regards to the ongoing Brexit negotiations, specifically on how the negotiations will pan out once the snap elections in June come to a close. In addition, the results of the recent opinion polls are showing that Theresa May lacked the expected lead in the upcoming snap elections, which puts May in danger since anything less than a landslide victory for the UK PM will make this particular risk of hers in order to establish herself in the international scene a failure. The GBP/USD pair is also currently struggling to surpass 1.3030 points, and all of these factors have turned against the cable pair and has put a significant amount of downward pressure on the pair.

For today’s session, there are no expected releases from the UK economy although the US will be releasing its PCE data, which will be closely monitored by the market as this will be indicating whether the June rate hike will indeed push through or otherwise. If this data disappoints the market, then this will not bade well for the GBP/USD pair.

The USD/CAD pair remained in consolidation mode as the market lacked significant volatility due to market holidays in China, US, and the UK. The loonie remains trading under the very important trading range of 1.3500 points, mostly due to a steadying in oil prices in addition to a strong greenback value.

The currency pair broke through 1.3500 points last week after a surge in oil prices. Although the oil bulls were very disappointed with regards to the results of the recently-concluded OPEC meeting, the loonie received some well-needed pressure from this drop in oil prices, thereby triggering the USD/CAD pair to revert to 1.3500 points and closed down last week at just under this critical trading level. The CAD is also currently being propped up by a series of very positive data from the Canadian economy, with this economic improvement getting some acknowledgement from the Bank of Canada in its rate statement during the past week. In fact, the BoC has already decided to put its rates on hold instead of implementing a rate cut due to this consistent improvement in the country’s economic state, which could then lead to a possible rate hike if the country’s economy continues to be positive.

For today’s session, the US economy will be releasing its PCE data which is expected to clarify the country’s inflation status in addition to shedding some light on whether the Fed will be indeed implementing a rate hike next month. If the PCE comes out as negative, then the USD/CAD pair could possibly correct further towards 1.3400 points.


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The Australian currency had slightly decline amid Tuesday trades, however, met a support around 0.74 mark to bounce back and climb upwards. An ability to cut through above the 0.7450 region is highly important. The resumption of the bullish pressure will prompt the market to advanced towards the area above 0.75, which is previously a significant resistance.

The rally is expected to run out within a short period of time, in case the gold surge considering a “risk on” rally. Therefore, the market has to continue trend upwards.

The gold markets appeared to be a safe place to get involved with. When gold was bought as a fear trade there is a tendency that Aussie will not follow. Nevertheless, a positive feeling towards the markets will help the AUDUSD to attempt a higher move.

The AUD is starting to gain strength, but the Kiwi appeared to be much stronger as it drives forward. Forecast says, the favor should remain in the seat of the New Zealand dollar, but there are predictions that both commodity currencies will go through similar directions.

A break down under the 0.74 range would indicate a negative signal and caused the Australian dollar to plunged lower.

Alternatively, the pair is projected to experience volatility, yet this is not new to this pair since the market always run in circles. Volatility awaits upon moving forward, for that reason you should look out on your stop losses.


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The national currency of Britain weakened amid Tuesday trading, however, it had a significant rebound from the area 141.80 reaching the 143 handle. A break over the daily highs would direct the market in a higher position, as it may reach 144 level without plenty of issues.

Generally, the Sterling holds a significant amount of reversal throughout the day since the Cable further exhibited active signs. This could probably be a correction for the oversold condition where the GBP sees itself, after the election polling it became tighter exceeding its expectations in the past. Moreover, the figures decreased inclined with the conservative administration. Having said that, the uptrend will resume eventually, hence buying is highly preferred on the gap above the highest.

Remember that the pairs relative to Japanese yen appeared to very sensitive to risk. This could be considered as one of the most delicate pairs, the simultaneous rally of the stock market is a big help that could move 100 pips in an instant.

Either way, a cut through underneath 142.50 region would allow the market to touch 142 handle once again.

The daily candle begins to display a bullish stance which signals that buyers will return, nevertheless, it could be best that you’ll wait for the market to reveal hints to initiate the buying, as a means to safeguard your account against an extensive volatility.