Thread: Daily Market Analysis from ForexMart

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.

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.


GBPUSD07.jpg

The EURUSD aimed to make a rally during Tuesday session but look for a strong resistance around 1.1280 region to make a reversal. Then, rebounded through the 1.1240 mark.
Meanwhile, the market remains to be bullish and attempted to front run the monetary policy statement of the European Central Bank.

The ability to break out in the upside enable the market to move towards the area on top of 1.13. The 1.15 range is the top of the latest consolidation seen in the EUR/USD for the past years.

Moreover, the market might experience difficulty in breaking above the mentioned range, however, series of attempt were made to get through the area and identify its capacity to hold on.
Buying in the dips resumes progressing forward despite anticipated noise.

As the Britain will leave the European Union, there is a chance that some statements will weigh against Euro’s value. Either way, the interest rate hikes from the United States may catch more attention.

A breakout to the upside is possible while the 1.12 market must be the “floor” in this market.

Goldman Sachs Higher Rates to Gain More Clients
The Goldman Sachs Bank U.S.A. intends to increase its rates on client deposit by 1.2 percent from the previous 1.05 percent. The rate hike makes them higher than other financial institutions including CIT Bank, Synchrony Bank, and New York Community Bank's My
Banking Direct. The average rate is at 0.06 percent 0.06 percent as reported by the U.S. Federal Deposit Insurance Corporation.

They are searching for ways to improve lending in money management and investment banking category which they said to had a rough time with. In 2016, they introduced Marcus as their primary approach to consumer lending. This rate hike move hopes to expand profit of Goldman Sachs and appeal to additional Main Street clients which will eventually give bigger gains. Also, these deposits open a more robust type of funding and this would have stayed longer during uncertainty.


goldmansachs.jpg

The USDCAD go through sideways amid Wednesday’s trades and attempted to push downwards reaching 1.3425 handle. After that, the market had broken out to the upside on the back of releasing the figures of Crude Oil Inventories. The number showed that oil demand declined again while the greenbacks broke to upside and collapse over the 1.35 handle.
With this, the commodity-linked pair is preparing to resume the longer-term uptrend with anticipation that buying dips will progress.

The Canadian dollar is expected to struggle as demand continued to be sluggish relative to the crude oil market. A break on top of 1.36 handle prompts the market to move forward near 1.40 region eventually. As buying dips in the near-term will persist, selling the market seems uninteresting. The U.S. dollar has to extend its gains versus the loonie because the oil keep on dragging the currency in the longer-term

A breakdown or pull back cause buyers to missed the trend during the announcement.
The position on the lower level showed plenty of choppiness, hence, down there might have the same degree of irregularity because support will be provided for pullbacks. Therefore, expect a lot of order flow accompanied by “market memory found in the lower areas.

The EURUSD drove downwards as the European Central Bank (ECB) decided to maintain the interest rates on a steady pace coupled with dropped easing bias. This further took a neutral position with regards the way they will see the monetary policy.

The schedule for quantitative easing remained unchanged while rates should be expected to retain its recent levels as reflected in the transcripts.

The pair moved near the support shown at 1.1220 mark that lies around the 10-day moving average which currently serves as the resistance in the near-term. Further resistance sits at 1.1285 region close to the weekly highs. An ascending sloping trendline is found at 1.1140 area. Meanwhile, the momentum turned towards the negative territory and the moving average convergence divergence (MACD) produced a crossover signal to sell prompted by the intersection of the spread under the 9-day moving average. The histogram shifted from positive en route the negative grounds and confirmed a sell signal.

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.

The British currency has an insignificant performance during Monday opening as the Europeans came back from behind. There is a gapped in the level 1.2750 and broke down towards the 1.2650 region. The market persists to show a massive bullish pressure considering that uncertainties wrought from the election will probably influence the sterling in general.
With this, the rallies could possibly provide some selling opportunities, however, a break on top of 1.28 region signals a bullish stance. And the market will move near above the 1.29 handle. Volatility is highly expected because of the trends influenced by headlines.

The sell rallies will continue on short-term charts which give indicators of exhaustion.
In case the bearish pressure remains, the market will come under 1.25 handle and keep on struggling because of indecisions on the United Kingdom along with the interest rate hikes to be implemented by the United States later this year

There are few reasons that GBPUSD will keep to struggle and decline. A slice over 1.28 handle will favor for a buying position.

The GBP/USD pair was finally able to make some significant headway amidst a highly volatile trading session yesterday after suffering from the adverse effects brought about by the results of the UK snap elections. As the Conservative bloc failed to get the number of majority they initially aimed for, this created uncertainties and risks within the market and has put the cable pair under severe downward pressure.

But yesterday’s session served as a breather for the GBP/USD pair as uncertainties within the country’s government formation are now starting to get sorted out, thus enabling the cable pair to push past towards 1.2700 points. The talks between the DUP and the Conservatives has so far produced positive results, and it seems now that this alliance will be maintained at least until the Conservatives need to work on several issues, including government formations. One such issue is the looming Brexit talks, with Theresa May staying defiant and believing that she will be able to push through with the Brexit talks in spite of political turmoil and calls for her resignation from her current post as UK Prime Minister. However, May still has to prepare herself as she will possible be faced by several hostile EU leaders who will want to take advantage of May’s position as well as the UK’s current international standing. In addition, Scotland is again on the brink of instigating another independence referendum, and all of these risks are expected to weigh down on the sterling pound both in the medium term and long term.

For today’s session, the market will be focusing on the Fed’s next move with regards to its planned interest rate hike. If the Fed pushes through with its rate hike, then the market will be looking at the FOMC statement next in order to look for clues with regards to the schedule of the next rate hike. If the statement comes out as bullish, then the dollar could further increase in value and the sterling pound might again drop and could possibly revert to its range lows.

The Kiwi had rallied during Tuesday’s trading session and broke on top of the 0.73 region. This indicates a bullish sentiment which requires a follow-through, however, the Fed Reserve might have other reaction about this matter.

The level below 0.72 is expected to offer a massive support and buyers will be involved eventually. Pullbacks may have appeared to be of value which could possibly the most suitable way to take part in a highly impulsive session. But it does not directly says that the market is going to be intense within 0.73 area and it only needs a lot of patience in order to obtain profit from this type of market. There is a tendency that market will grind higher sooner or later.
Furthermore, in the long-term uptrend show signs that it is best to buy dips for it will provide better entry plus enabling you to establish a larger position.

The market trailed through the region above 0.75 as this is significant on the longer-term charge. Ability to make a gap on top will make an ascending trend but we should reach the target first.

Volatility remains in the market but in case that the US central bank showed at least some concern in the economy will convince traders to bet that there will be a lesser possibility for an interest rate hike in the future.


NZDUSD15.jpg