Thread: Daily Market Analysis from ForexMart

EUR/USD Daily Analysis: July 12, 2019Forecast for consumer prices shows a higher increase in June. The most recent report showed a growth of 0.1 for the month CPI and 0.3% for the Core CPI. Overall, the figures have exceeded expectations. Rising inflation may affect the rally of the euro major pair given that the weaker dollar was driven this week by expectations on monetary policy easing. The dollar index (DXY) dropped more than half of the percent from the most recent high amid the rhetorics of Powell. On yesterday’s CPI data, the index rose and was able to close unchanged. A Doji pattern was also seen on the euro major pair, which shows some exhaustion. This follows the possibility that the CPI data may hinder the upward movement of the pair, at least for short-term. Along with the Doji pattern, the pair closed below the 100-MA and was unsuccessful to break higher than the indicator, which will not be favorable for the bulls. As of the moment, the price is trading beyond it. The upward movement seems to be limited by the resistance of 1.1265 so far. The pair has to maintain a breakthrough above 1.1280 in order to confirm the ascending movement here. This will negatively affect yesterday’s exhaustion candle. On the other end, if the pair closes once again below the 100-MA, traders can expect for the weakened state at the beginning of next week. It may not be easy to continue the recovery of the pair but as stated, there is some strong resistance at 1.1305on the 4-hour chart and be limited around 1.1265. There is also a chance for the pair to retreat to the horizontal level of 1.1237 below. There is a minimal chance for the euro major pair to recover in the background of a few fundamental news and technical limitations to limit the pair's move to go higher. The pair is also likely to close in relation to the 100-MA, which would have a big impact on next week’s trading.

EUR/USD Daily Analysis: July 12, 2019Forecast for consumer prices shows a higher increase in June. The most recent report showed a growth of 0.1 for the month CPI and 0.3% for the Core CPI. Overall, the figures have exceeded expectations. Rising inflation may affect the rally of the euro major pair given that the weaker dollar was driven this week by expectations on monetary policy easing. The dollar index (DXY) dropped more than half of the percent from the most recent high amid the rhetorics of Powell. On yesterday’s CPI data, the index rose and was able to close unchanged. A Doji pattern was also seen on the euro major pair, which shows some exhaustion. This follows the possibility that the CPI data may hinder the upward movement of the pair, at least for short-term. Along with the Doji pattern, the pair closed below the 100-MA and was unsuccessful to break higher than the indicator, which will not be favorable for the bulls. As of the moment, the price is trading beyond it. The upward movement seems to be limited by the resistance of 1.1265 so far. The pair has to maintain a breakthrough above 1.1280 in order to confirm the ascending movement here. This will negatively affect yesterday’s exhaustion candle. On the other end, if the pair closes once again below the 100-MA, traders can expect for the weakened state at the beginning of next week. It may not be easy to continue the recovery of the pair but as stated, there is some strong resistance at 1.1305on the 4-hour chart and be limited around 1.1265. There is also a chance for the pair to retreat to the horizontal level of 1.1237 below. There is a minimal chance for the euro major pair to recover in the background of a few fundamental news and technical limitations to limit the pair's move to go higher. The pair is also likely to close in relation to the 100-MA, which would have a big impact on next week’s trading.

EUR/USD Daily Analysis: July 16, 2019


Looking back at what happened last week, the dollar had gone weaker after Fed chair became more dovish than anticipated. However, with the presence of resistance on the upside and range support, the EUR/USD pair could stay range-bound.


Nonetheless, the market will monitor the upcoming data to assess the probability of Fed easing at the end of the month. The highest impact will probably be the initial release of the second quarter of GDP. Hence, the momentum in the euro and other currency pairs paired with greenback will probably slow down.


As we can see, the impact of Powell rhetorics will probably lessen this week, considering that the future markets will prepare to set the price after aggressive easing at the end of the month. Meanwhile, the likelihood of rate cut by 50 basis points grew to 3 from 1.


The euro major pair was previously seen testing the confluence of support at 1.1237 and the 50-MA.


It seems that there is a lot of trading at the start of this week. However, it less likely to break lower and at the same time, thinking that the top resistance is opposing the dollar index.


Overall, volatility may be a bit slow prior to the release of data, which will have a say to the chances of a rate cut. In the short-term, a rally is probable at 1.1265 with the presence of sellers.

EUR/USD Daily Analysis: July 17, 2019


Markets are still not sure on how the Fed will be on the next meeting scheduled at the end of the month. Rhetorics from Fed member, Evans has triggered a deep decline last week by half a percent at the end of the year. Investors are following the data releases closely, concerned by the possibility of the ECB to follow the Fed in monetary easing.


Yesterday, the euro major pair dropped below the support of 1.1237. Consequently, the pair broke to the range which was sustained for almost a week. The fall of the trend opened the path to the psychological handle of 1.1200 and further below seems attractive.


The support of 1.1188 remained higher in the middle of June, which then resulted to a rally above 1.1400. In turn, this will be the border limit for the EUR/USD bulls.


In the short-term, traders will likely to meet resistance to the level of 1.1237, which was the lower border in the previous range. It may push the pair above 1.1265 to make it attractive for bulls. After a break in the range, bears have taken over for short-period of time.


After the inflation headline, the euro major pair rose slightly from support with an upward resistance met at 1.1237 as mentioned earlier. The next downward level will probably 1.1188 to be significant.

EUR/USD Daily Analysis: July 18, 2019


A weakened dollar influenced a recovery rally from the euro major pair. With the market expected to have an aggressive easing, it seems that the push is not likely to reach a higher break.


Moreover, we have to keep in mind the bullish engulfing candle in DXY following optimistic retail sales on Tuesday. Meanwhile, the US dollar index declines for the second successive trading hours after the sharp increase of retail sales.


The EUR/USD pair tests the horizontal level of 1.1237. So far, the trend moves with an upward direction for the week so far. An important confluence on the resistance should also be noted.


At the same time, a confluence to 1.1245 with the 50- and 100-MA, which was the peak for the day so far. Below, the 1.1200 handle keeps the pair higher and remains major support in the short-term.


For the week, there is no market data anticipated for the week, unless a headline comes out to influence the market. Hence, a drop in volatility is likely.


Overall, even if the greenback weakens today, the euro major pair may have less trading. At the beginning of the day, the common currency is in a flat state. Meanwhile, the Sterling pound has been the strongest contender as the UK sales on retail push the pair higher.

EUR/USD Daily Analysis: July 22, 2019


There were volatile movements last week as Fed members give their opinions with a majority seems to be tilting to policy easing. However, one Fed member opinion to wait should be noted. This results in a sharp decline in the pair and surge in volatility on different assets on Friday.


Thereby, markets focal point will be on the ECB with an expected schedule on Thursday.


Previously, the ECB had a hawkish sentiment, which is unexpected and furthermore, the price hike is postponed but it still in consideration.


On the other hand, the ECB president gives off a dovish sentiment since the postponement, which is hoping to be confirmed on the upcoming Thursday meeting.


Meanwhile, markets are still eyeing the Fed but are expected to diminish in the coming week. Aside from the ECB meeting, the Fed has this “blackout period” as they remain quiet without any interviews. Although, this will likely be transient.


Lastly, the latest GDP data will be published from the US on Friday, which is considered important prior to the meeting of the central bank.


It seems that the pair tries to break a flag pattern that gives a bullish sentiment considering last week’s rally. However, given the sharp drop from Thursday high, I don’t have high hopes for a bullish flag.


Moreover, it seems that the euro major pair is placed between the 1.1200 and 1.1280. For now, the pair is at the lower limit of the range. The declining trend following a bearish engulfing candle on the daily chart is likely to put pressure on the recovery rally of the pair in the next trading hours.


If the pair breaks beyond the range early this week, we can expect strong trading, where the ECB becomes the main driver in the direction for this week movement. Hence, the attention of investors will be directed to the ECB actions if they will also proceed with policy easing.

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EUR/USD Daily Analysis: July 23, 2019


The euro currency keeps on declining as traders look for chances of sell stops on Tuesday with the anticipation of the ECB chief Draghi, to reduce rates in September to be discussed on ECB policy meeting on the 25th of the month.


Earlier, the trend declined when the sellers were able to work out the 1.1200 with the main trend is now in a downward direction. Afterwhich, the price pushed to the main level below at 1.1193 and 1.1181.


Sellers were also able to break through the long-term Fibo level of 1.1185 with the resistance level from 1.1278 to 1.1318. As a result, the euro major pair has a bearish trend.


At the moment, the price is found at 1.1178 and the future movement of the pair will highly depend on traders' reaction to the Fibo level of 1.1185.


If the price stays below 1.1185, this would mean the dominance of sellers and further movement to 1.1181 would mean a stronger presence of sellers. This could result in a break to 1.1161, which was previous support prior to the main bottoms at 1.1116 (May 30) and 1.1107 (May 23).


On the other hand, returning to the level of 1.1185 would mean the presence of buyers. In turn, this could lead to resistance levels of 1.12143/15. However, we should look for sellers and break to 1.1215 could mean faster acceleration to the upper level.

EUR/USD Daily Analysis: July 25, 2019


Markets are hoping for a dovish sentiment from the ECB since other central banks have made their decisions. Although, this if not far from the June ECB meeting but not as dovish than expected. This resulted in an increase and then Draghi expressed their sentiments on considering the risks.


Now, the markets are considering easing from the ECB even today’s meeting. Although, some analysts have different opinions in mind as they are expecting it in September instead. Overall, volatility will highly depend on the decision, either become dovish or hawkish than anticipated by the markets.


Thus, we can expect a reaction given the markets’ statement of a probable rate cut. This time is different from the previous meetings since it is not about the press conference. If the price further declines, it is not far from stops induced below 2019 low, which can minimize volatility. Thus, I would aim for the level of 1.14027.


If we push lower from here, I think it is inevitable that stops will get triggered below the 2019 low. This can trigger a volatile downside move. In such a scenario, I would be looking for a move to 1.1027.


However, if the price turns out bullish, there can be few levels to be considered important. Initially, it will be around 1.1184, which was the previous high in March and April. At the same time, this caused a reversal in the middle of June. If the markets can reach as high as 1.1265 on an intraday basis, this would favor trade scalpers. This rate offers resistance beyond the usual range for ECB.


Support was held higher for the year at 1.1118 and a surge in volatility can take place in case it goes lower, which is likely to be the limit with today’s ECB meeting. It can stop from here if the ECB becomes dovish than anticipated. Yet, if the rate doesn’t decline, then we can see the pair to rise to 1.1184.

EUR/USD Daily Analysis: July 29, 2019


The dollar rallies prior to the Fed meeting, which puts the dollar bears in a difficult situation to keep their stance this week. Meanwhile, the dollar is about to reach the yearly high with inversely correlated to the euro major pair that will closely breakthrough the two-year low.


The price holds higher than the level of 1.1118 on the daily chart, although the ups are short. Volatility is expected to be present with the scheduled meeting of central banks this week.


In the previous week, the pair declined after the ECB meeting but only occurred to have a higher reversal. The resistance at 1.1188 is where sellers joined the trading. However, looking that the pair returned back to the support level, which could mean that there is not enough momentum for buying.


Also, major currencies are met with important support against the dollar at the beginning of the week. However, there is no strong technical movement for a turn here. Yet, it may not be wise for tailgating for a breakthrough.


If the price breaks lower than the horizontal level of 1.1118, it could possibly attempt to test again the lower limit of the trend channel which was previously kept higher. This kept the price movement on the 4-hour chart.


On the other hand, if the price rises higher than 1.1135, this would open the chance to go higher with the resistance level remains at 1.1188 as an after-effect of ECB decision.


In the meantime, the volatility is likely to increase this week with various risks to move the markets. Yet, the mentioned resistance of 1.1188 remains to be a key resistance that traders have to face after ECB last week.