daily market analysis from forexmart

EUR/USD Technical Analysis: August 22, 2018





The single European currency had rallied amid Asian trading yesterday and further break above the significant level 1.15. Nevertheless, the gains were only temporary followed by a pull back to test the region along with the onset of American hours. Moreover, this seems to be a completely impossible breakout which may lead to the thought that Turkey is still the concern of most traders.


It remains a question whether the hammer formation in the previous week indicates a technical rebound or value hunting. It seems hard to answer for now but we consider it more of a technical correction. There is a potential area that extends towards the 1.1550 region, which could open doors to reach the upside effortlessly and touching that zone will make an impressive situation.


As expected, headlines will move the market but traders should keep an eye to the American dollar as it tries to gain strength since the New York will begin the day. With this, the US dollar will certainly strengthen against the EUR/USD pair. While market players remain concerned about the current status of the European Union since the issue continues to linger in the traders’ minds. Take note of the headlines from Turkey because as their news worsens, it would greatly affect the Euro.

EUR/USD Technical Analysis: August 23, 2018



The euro rose higher during the Wednesday session but it may be difficult to reach the level of 1.16. This level may appeal to some value hunters especially close to the level of 1.1570 and the area of 1.15 to be psychologically important. Overall, the market will still worry about the Turkish problem but may be excessively inflated. At the same time, media may overplay the situation given the possibility to repeat another great recession which will quickly attract headlines attention.


The level of 1.15 is significant as of the moment and if the market can hold this level, there is a chance for the price to rise higher. However, if the opposite happens and turns out negatively, it may wise to begin selling the pair. In this case, it would be best to be optimistic but still heedful until the level of 1.1850, which was previously the trading level at the top of the consolidation range. Noise should be anticipated but keeping in mind that other high-frequency trading algorithms in the market.

GBP/USD Technical Analysis: August 24, 2018





The sterling pound prevails over the market on Thursday, while the trading seems difficult because the 1.29 region became slightly resistive. The price action amid the day only emphasized the current volatility that the GBP/USD pair has. In general, the British currency would likely be a huge investment in the longer-term but the nearing end of the Brexit caused further confusion than clarity. Nevertheless, there are rumors that the longer-term profit will begin to jump into the GBP or even try to win over the optimistic news.


This market could probably decline to the 1.2750 region prior seeing some major support. We can see some type of support at the 1.2825 zone but it may take some time before testing such levels. There are forecasts that the sterling could possibly break out to the upside upon gaining some clarity. However, considering the current scenario, it is recommended to deal with some volatility and choppiness.


Traders should not also forget to pay attention to the current and overall status of the US dollar because this is highly expected to reflect on this market. As of this moment, the majority are concerned with global trade which placed some demand in American currency.

GBP/USD Technical Analysis: August 28, 2018





The sterling pound had a significant rally earlier this week. It further breaks above the 1.2850 region and would probably test the 1.29 zone. A move higher near the 1.30 mark is possible but it might be very choppy throughout the process. Buying in the dips can be reliable except when negative factors or general headlines were released from the UK. It seems that the British currency is undervalued by which different kinds of investment will attempt to arrange a deal with the European Union.


Upon having an arrangement, the pound will breakout in value because we can find some certainty in the market. Continuing to buy the dips is not ruled out yet and the 1.2750 mark is expected to the “floor” in the market but it might reverse the whole thing eventually. Market players should anticipate volatile sessions as large money flows in an out. At this moment, there is a higher risk to the move upside rather than down. Moreover, traders might need to deal with occasional pull back and negativity in the market.

EUR/USD Technical Analysis: August 29, 2018





The single European currency broke on top of the 1.17 mark which indicates being active again. It seems that the overall market sentiment will keep on improving, which would likely support the euro or negatively affect the US currency because traders are expected to overcome the risk appetite curve to other markets and currencies.


The current situation shows the possible testing of the previous highs at the zone 1.18 that serves as the ceiling of the consolidation. A break above that region will pave the way towards a higher level, as the initial target highlighted the 1.20 level.


In case that players will pull back, plenty of support levels below are predicted to keep this market buoyed. We can find support at the levels 1.1650, 1.16 and 1.15, which is expected to be the “floor” of the market. It is suggested to continue buying the dips to play with this market, while traders may become more assertive above the 1.20 region.

GBP/USD Technical Analysis: August 30, 2018





The sterling pound moved back and forth in the past few days and it is expected that the situation will remain unchanged, as the Brexit will continue to bring uncertainty to the British pound. Nevertheless, there is plenty of support in the past and it is predicted to keep going since there are only a few traders who opt to sell the British currency.


In the next couple of months, the Brexit agreement will be finalized which means that we’ll be seeing some certainty. With this, there are more players who would want to buy the pound. Moreover, the “smart-money” would likely get into the GBP to help the money on work since there is a lot of value in the longer-term charts.


As of this writing, the 1.28 region is projected to provide support with the possibility to go even lower. While the 1.2750 region appears to be more supportive and it may take some time before buyers return the market. The major target for resistance is the 1.30 region, which appears really attractive to traders. Considering the entire scenario, we need some optimistic news about the global commerce, about the United Kingdom or anything that could help push the market upwards to drive away traders from the greenbacks.

EUR/USD Technical Analysis: August 31, 2018





The euro/dollar currency pair pulled back during the first half of trading yesterday, however, find some support around the 1.1650 region as well as in the level of 1.16. As of this writing, the market is expected to rally for some time since the trade deal will be signed in North America and may show a “risk on” sentiment in the market generally. On the other hand, Turkey’s issue was reduced in priority since people do not really fear about it, and this further helped the single European currency to have some “relief rally”.


The market became uptight lately, but there is a tendency to move above the 1.18 zone, which is the top of a significant consolidation region. A break on top of that area or near the 1.1850 would likely help the Euro to reach above the 1.20 mark, an area that is expected to be attractive since it appears important on the longer-term charts.

GBP/USD Technical Analysis: September 4, 2018





The sterling pound breaks lower amid trading course on Monday as the week started, and showed further concern about the Brexit’s progress. Such headlines will keep moving this market immoderately and a break down under the 1.2850 region will push the British currency towards 1.28 zone eventually, which was a very supportive level in the past. Below that zone is the 1.2750 mark which is a crucial area in the longer-term charts.


It is expected that the market will have a reversal and indicate signs of support which will open doors to pick up value since the pound was oversold for a long period of time. Nevertheless, we need some optimistic news as the Brexit continue to drive this market higher. Ultimately, we can find some resolution but at this moment, we might encounter a lot of repulsive volatility brought by such news.

EUR/USD Technical Analysis: September 5, 2018

GBP/USD Technical Analysis: September 6, 2018





The British currency has broken to the upside in response to the statement from Germany and the United Kingdom about their weakening stance towards hardline issues of Brexit. With this, we can expect that Brexit will happen sooner or later. Nevertheless, this move was seen last week and players should be very cautious in getting into this market. Hence, there are a lot of retail traders who would likely bet their full account for this move. Unfortunately, they will be extremely be mistaken about this, because prior to any confirmation, it is possible that a statement will be issued to reverse this downwards.


On the other hand, there is a potential change in the trend of the sterling pound that has high possibility to come upon breaking above the descending trendline around 1.3033 region. This could be a tricky candle to use in trading and the best possible way to trade this is by purchasing short-term dips.

GBP/USD Technical Analysis: September 7, 2018





The sterling pound slightly rallied amid the day on Thursday, however, it reverted as the Americans came into play. It seems that the markets know how to take a lot of risks since the jobs figure would likely break this market. Aside from that, the issue of softening stance between the Germans and the British regarding the talks has been turned down by the Germans. The market closed at the same level of the gap and it appears to provide resistance earlier this week. Eventually, there is possible for a downwards movement in the near term but we can see a significant support around the 1.29 region. Moreover, there are also forecasts that states the potential significant amount of uncertainty in the market. With this, the market may edged lower just like what happened in the previous week.

GBP/USD Fundamental Analysis: September 10, 2018





The pound/dollar remained unchanged above the level of 1.2900 as the Cable pair broke up around the technical handle since last week and stimulate hope for the approval of Brexit deal would likely oppose Monday’s GDP outlook for the British economy. Brexit negotiator Michel Barnier plans to get a new order from the EU leaders in Brussels, and this move indicates that the European Union will deal with Britain amid the major issues and despite the delayed negotiation process.

EUR/USD Technical Analysis: September 11, 2018





Yesterday, the euro rallied, reaching the level of 1.16 in the US session. Hereinafter, we can find a drive for this pair to rise higher. There is a chance for the pair to move towards the level of 1.1650 and then to 1.17. We should also take into consideration that there are other contributing factors and the greenback could climb higher which will turn around this pair.


Although, the level of 1.15 seems a very strong support and it is likely for this level to be sustained for a while. Hence, it is suggested to buy the pair on dips and we can expect for “risk on” trading for this pair in short-term. It is also a positive thing for commodities since the greenback has a large influence on it. The market is attempting to take a hold on this pair that could result in a lot of choppiness especially since there is a lot of traders returning from the holidays. Yet, there is a chance for the buyers to come in strong.

GBP/USD Technical Analysis: September 12, 2018





The British pound had a lot of noise during the Tuesday session. It broke higher than the trend line which is a positive thing but any statement from EU would put it to stop. The trading strategy continues as EU official is saying for the British to be careful not to overstep prior to the Irish official stating that it would only won’t be too long. Meanwhile, the currency market is getting a mixed reaction while the media influence the rationale on this aspect.


It seems that there is a chance for a breakout but we must remain patient. Hence, I think that we can find a lot of value in buying on dips given the past low price and in case some form of resolution, this would be good for the pair. Other than that, if we reach a fresh new high, this would drive the pair. Nonetheless, at this point, no deal would also still bring uncertainty to the pair and some value hunters will probably enter later on. I may not look for selling the pair given the situation but opportunities may open to purchase the pair in pullbacks.

EUR/USD Technical Analysis: September 13, 2018





A lot of noise exhibited in yesterday’s session of the EUR/USD pair and bounced around the level of 1.16. Hereinafter, trading activity will mainly depend on the US dollar. Traders should look out for the new to be released from the European Union as this would have an impact to the reaction with Brexit which is the main concern on the euro. Besides that, there will also be noise in the emerging market that could either push the US dollar rate higher or lower depending on the trading for today. Hence, there is a lot of factors we should weigh-in trading this pair.


Analyzing the long-term charts, the price will probably range between 1.15 and 1.18. Overall, noise is expected but eventually, the direction will somehow be decided later on. For now, it is suggested to buy in short-term pullbacks as the trend is close to the bottom of the bigger consolidation than above. A lot of changes may happen, nonetheless, noise is likely to persist. Hence, traders should aim for long-term trades rather than short-term since there is not enough momentum to break through in the general range yet.