SheldonThinks Forum

EUR/USD Fundamental Analysis: December 7, 2016
The pair remained in a consolidation state yesterday since there is no economic news to drive the pair up or down which was different from the other day. The price moves higher than the 1.0680 mark as the bulls try to push this higher towards the 1.0800 level.
The European Central Bank meeting will take place tomorrow which expects to bring volatility to the pair tomorrow and after the minutes has been released.
The pair moves in a tight range for the day with the effects of Italian referendum begins to fade since the market now focuses on ECB statement scheduled tomorrow. They are expecting that Draghi will announced a cut in the Quantitative Easing program but since this meeting would not be directly saying on whats gonna happen next. There is a possibility the central bank would have a mix of a bullish and dovish tone in the pricing and would not necessarily halt the Quantitative Easing.
There will be no major economic news from the Euro or U.S. area to be publicized today. Hence we could expect for the price to maintain within its current range until the ECB meeting has ended. For now, another test above the 1.0800 level may happen as the market awaits for will be the decision on Thursday.

EUR/USD Technical Analysis: December 8, 2016
The European market remained stagnant during the previous session as market players are currently waiting for the minutes of the European Central Banks policy meeting. The EUR increased against the USD during Wednesdays trading session but was unable to regain its previous losses.The market exhibited low volatility during the London trading session due to an absence of market players. The EUR/USD pair spent the first half of yesterdays session over 1.0700 points, with the currency pairs pricing remaining under the 200 EMA. The 100 and 200 EMA for the pair exhibited a downward trend, and the 50 EMA increased and was able to reach the 100 EMA. Resistance levels for the currency pair is expected to come in at 1.0750, while support levels for the currency pair is expected to come in at 1.0700 points.
The EUR/USDs MACD indicator remained in the positive side of the chart, while the RSI indicator stayed within the overvalued territory. The next bullish point for the currency pair is at 1.0750, and if the pair manages to break through this particular region, then this could cause the pair to hit the 1.0800 region.

RSS feed

Dear Clients!

We are glad to inform you that RSS-subscription is now available on our website. Please add our News section to any application for reading RSS-feeds and you can always be aware of all the events of our company in a convenient format.

AUD/USD Technical Analysis: December 7, 2016


The decision of the RBA to preserved its rate caused the Aussie to slow down. As the regulator have said that there is a tendency for a short-term downturn in the countrys economy. The pair were unable to break the 0.7500 area due to a pressured area that recently arise which results in a reversal of its gains from the earlier sessions. Meanwhile, the Australian dollar turns back through the 0.7450 level and settled therein during the EU hours. The price attempted to regain its strength prior to the onset of New York trading session, it headed upwards further away from the 50 and 100 EMAs as seen in the 4-hour chart. The 50 averages ascended over the 100, while the 200 EMA together with the 100-day moving average exhibited a bearish slope. Resistance is seen at 0.7500 region, support sits within the region of 0.7450. The MACD histogram approached the positive zone. RSI is placed around the neutral territory.
Should the AUDUSD expand its gains in order to remain on top of the 0.7450. Traders are capable of leading the prices to the 0.7500 mark. Even though prices attempted to break the resistance level couple of times, it seems hard-bitten. In case another failure came to pass within this point, the Aussie and greens will be rejected further in the 0.7450. Contrarily, the AUD has the chance to extend its gains until 0.7550 if the buyers get it to the top.

GBP/USD Fundamental Analysis: December 12, 2016
The GBP/USD pair had a lackluster performance during the entirety of last weeks trading sessions since the sterling pound experienced constant pressure from the much stronger euro. The EUR plummeted last week after the ECB announced its plans to extend its quantitative easing program, and the EUR/GBP lost a significant amount of its value, causing the sterling pound to be affected as well. Prior to this sudden drop in value, the GBP has previously exhibited remarkable resiliency in spite of the confusion caused by the Brexit process. The GBP rose during the first part of last week and was even able to go through 1.2700 points before eventually reaching 1.2800 points before the announcement from the ECB dragged the GBP down.
The GBP was also subject to added pressure due to delays in the implementation of the Brexit strategies as the Parliament is in the middle of heated debates regarding the implementation of Article 50 on the region. Since the timeline for the Brexit remains uncertain in spite of numerous meetings and debates within the Parliament, the sterling pound is expected to remain under pressure and any form of reversion should be immediately seen as a sell-off opportunity for the currency pair.
For this week, the market is expecting the release of the CPI data as well as the Claimant count change data from the from the UK. The Bank of England is also expected to make a statement on whether the central bank would be maintaining its current interest rate of 0.25%, and the Fed is also scheduled to make an announcement regarding its interest rate hike, as well as a statement on whether the central bank will be adding up the frequency of its rate hikes next year. Due to the large number of economic data scheduled to be released this week, the market is expected to undergo an especially high level of volatility within the week.

USD/JPY Fundamental Analysis: December 12, 2016
The USD increased in relation to the JPY and was able to reach its highest levels since January. The USD/JPY pair finished off last weeks trading session at 115.291 points after surging by up to 115.291 points or +1.61%. This particular close marks the fifth consecutive positive close for the currency pair, its longest strong streak in over two years. As investors anticipated the ECBs monetary decisions and interest rate plans last week, the USD/JPY exhibited sideways trading for the most part of last weeks trading session.
However, the ECBs announcement left uncertainties for the financial market in general after the central bank announced the extension of its QE program up until 2017, when the initial market expectations regarding the bank announcement was the bank announcing either the tapering of its present stimulus or increasing the banks economic stimulus. Furthermore, the European Central Bank has also announced that it will be cutting back its purchases by up to 60 billion EUR per month.
For this particular week, the main market catalyst is the Federal Reserves statement on its monetary decisions, as well as its much-awaited interest rate decision this coming December 14. The USD/JPY would only be able to continue its rally if the Fed decides to increase the frequency of its future rate hikes in 2017. If the Fed decides to have a maximum of two rate hikes next year, then the currency pair would most likely be subject to added selling pressure. However, if the Fed decides to have more than two rate hikes next year, then the USD/JPY would be able to extend its rallies within the week.

GBP/USD Technical Analysis: December 12, 2016
The Goods Trade Balance and Total Trade Balance established an optimistic data on Friday along with the strengthening of the sterling pound. The British currency procured some ground during the earlier trading session on Friday. Buyers drove the prices towards a higher position and tested the 1.2600 level amid the European session. The upward impetus short-lived consequent to the test, following the GBPs rollback below the level. As indicated in the 4-hour chart, the cable pair rebounded through the 50-EMA. Moving averages uphold its bullish bias.
Resistance lies in the 1.2600 are, the support sits at the 1.2500 region. The MACD histogram pierced through the negative range. When the MACD stayed in the negative zone, sellers will obtain more strength. The RSI is within the neutral territory.
The GBPUSD is expected to weaken upon the break below the 1.2600 level. Likewise, this could lead the prices towards 1.2500.

USD/JPY Technical Analysis: December 13, 2016
The Japanese yen experienced downward pressure during Mondays session due to the OPEC production deal as well as the positive market sentiment with regards to the Fed rate hike scheduled this December. Japan had recently released its Machinery Order and turned out to be positive, but even this particular economic datas effect paled in comparison to the aforementioned events which had a much larger impact on the safe haven currency.
The price of the USD/JPY pair reverted from 116.00 points and went back to the 115.00 trading range. As seen in the currency pairs 4-hour chart, the price of the USD/JPY stayed just above its moving averages and continued to inch higher. Resistance levels for the USD/JPY pair is seen to be at 116.00, while support levels are expected to come in at 115.00 points.
The MACD indicators for the currency pair increased, showing a surge in buyer strength. Meanwhile, its RSI indicators were able to remain within the overvalued regions. The market is now monitoring the pairs current position at 116.00, and if the USD/JPY manages to break through this region, then the pair could possibly hit the 117.00 trading region.

GBP/USD Technical Analysis: December 13, 2016
The weakness of the U.S dollar is felt widespread. In spite of the fact that the Fed are certain to have a rate increase, the greens remained on its recent highs. The British pound remained sluggish versus its American counterpart, however, the GBP met a strong support in the 1.2600 region which helped the pound to minimize downside volatility.
There is an anticipated buying within the 1.2500 level. Buyer tried to make some recovery and surpass the 1.26 mark, but they failed to expand its gains and it kept intact above the broken level upon the onset of New York trading session. The 4-hour chart showed the price tested the 50-EMA and it remained in the middle of 50 and 100-day moving averages. The entire moving averages carried a bullish slope. The current resistance touched the 1.2700 level, support has procured the 1.2600 area. The MACD histogram sits on the same level which favored additional strength for the sellers. The RSI is trending upwards. The short-term downtrend will continue in case that the price settled in the support level of 1.2600. The next target of the sellers is 1.2400-1.2500.

AUD/USD Technical analysis: December 13, 2016
The pair moves in an upward direction breaking above the 0.7508 Resistance level from 0.7369 mark. If the uptrend continues, the next target will be 0.7600 level. The Support level comes at 0.7428 level and if a break below this line is seen, this confirms the uptrend of the pair.

USD/CAD Technical Analysis: December 14, 2016 The loonie is in upbeat due to the support supplied by oil prices rally, while the greenbacks had a poor performance in trading. Bearish structure that waves downwards recorded from November highs persists yesterday. The price traded down the lower limit of a descending pattern. The U.S dollar met a stable support in the 1.3100 level subsequent to the losses it suffered from five consecutive sessions. The pair is trading in a tight range and attempted to reclaim the level during the EU hours. Moreover, the sellers break the level before the NY opening. The price develops down from the moving averages as indicated in the 4-hour chart. The 50, 100 and 200-EMAs headed to a lower position. Resistance touched the 1.3120 handle, support is seen in the level of 1.3050. The MACD histogram traded in the downside. RSI remained oversold. Should a break below the 1.3120 area will provide strength for sellers by which they are able to expand their gains from 1.3050 up to 1.3070. In case the USD CAD edged higher than 1.3120, an upward movement will initiate promptly.

EUR/USD Technical Analysis: December 14, 2016
The Economic Sentiment for Germany remained unchanged despite investors growth expectation, with this, euro established a weakening position. According to technical indicators, the market is bearish yesterday. Meanwhile, the pair continues to move within the descending channel, seeing the single European currency to procure a sluggish position but successfully maintain its stance above the support level of 1.0600.
The sellers started to tower above the market considering the greens were able to retrieve its gains from the sharp losses occurred on Monday. During the trading, the dollar made a reversal from its weekly highs as it attempted to push the 1.0600 area at the same time.
Moreover, the EURUSD did not succeed to recover the level and continued to rebounded before the onset of NY sessions. As shown in the 4-hour chart, the price made a bounced off in the 100-EMA to a downward direction. Resistance touched the 1.0650 region, support is at 1.0600.
The MACD histogram traded downside while the RSI is neutralized.
According to speculations, the downtrend has the tendency to persist. The pair is expected to approach the area of 1.0600 first. In case the initial target was hit, the next potential spot will be 1.0500 and 1.0550.

USD/CAD Fundamental Analysis: December 14, 2016
The USD/CAD pair is still trading within the lower regions of the chart, with the 1.3000 trading range seen as a key range for the currency pair. Once the pair goes below 1.3000 points, then this could offset the previous uptick in the movement of the pair and could be very beneficial for the bearish market players. The pair was able to remain within the tight-range territory due to lack of activity from the Canadian economy as well as from the crude oil market.
In spite of the fact that the Canadian economy is largely dependent on the activity of oil prices, the USD/CAD was able to sustain its value even when faced with fluctuations in crude oil prices paired with a steadily positive economic data from the country. However, the currency pair is expected to remain under pressure for as long as oil prices are able to sustain its recently high value. The Bank of Canada is also expected to cut back on its interest rates this coming 2017, and this could have an effect on the Canadian currency. This also partly explains why the USD/CAD pair is mostly bullish for this term.
For todays trading session, there are no major news releases expected from Canada. However, the US is set to release its retail sales data, as well as the minutes of the first part of the FOMC meeting, which could induce volatility in the movement of the USD/CAD pair. If the pair reaches 1.3000 points, then a stop loss is advised just below 1.2980 points.

USD/CHF Technical Analysis: : December 14, 2016
The USD/CHF pair is trading with a bearish tone moving in a downward direction. It is supported by the 50-EMA while the RSI remains neutral at 50 handle. The strong low highs and lows steadied implying a pessimistic outlook. The U.S. ICE index is maintained at 101.00 level.
Currently, the market is anticipating the next rate hike of Fed as high as 25 basis points and if the central bank would change the rates. If the price remained lower than 1.0145, it will continue to do down within the 1.0080 and 1.0035 range
The Resistance level is seen at 1.0170 then 1.0195 to 1.0215 level while the support level comes in at 1.0080 then 1.0060 to 1.0035 level.

EUR/GBP Fundamental Analysis: December 14, 2016
The pair EUR/GBP increased by 7 points with positive reports in German inflation data but the general market is concern with U.S. Federal Reserve. The pair is posited at 0.7223 psychological level. Higher bets in U.S. Federal Reserve that this will move in a different direction and would pursue rate hike during their policy meeting next week. The Monetary Policy Committee seeks to change the market outlook for the next U.S. Fed policy meeting.
Monetary policies of U.K. will mainly be determined from the inflation rates even though central banks from different nations stand alone. There might be no tension from Brexit but it is expected to come in the coming months with the International Monetary Fund focusing on Article IV and its possible effect.

EUR/USD Technical Analysis: December 15, 2016

The EUR traded ambiguously in relation to the USD since traders are still expressing uncertainties prior to the start of the Federal Reserve meeting yesterday. The German Manufacturing PMI data is also expected to come out later today. The EUR/USD pair had a bullish tone for the majority of the previous trading session, and traders were able to induce the pricing of the pair to drop to the 1.0650 trading range but was unable to regain its previous losses. However, a new wave of selling pressure caused the currency pair to hit 1.0600 points. The EUR/USD traded within a tight range during the London trading session and tried to exceed its previous levels during the start of the New York session. According to the pairs 4-hour chart, the EUR/USD pair was able to test the 100 and 50 EMAs, and the currency pair remained below its moving averages during the previous session.

The resistance levels for the EUR/USD pair is set to come in at 1.0650, while support levels are expected to come in at 1.0600 points. The MACD indicators for the pair is currently at the center of the chart, and if the histogram is able to go within the positive side of the chart, then this will mean that buyer strength will be increasing as well. However, if the MACD reverts back to the negative side of the chart, then this will enable sellers to regain their stance on the market. The RSI indicators for the EUR/USD remains in the neutral territory.

For todays trading session, the EUR/USD is expected to go through 1.0500 points and could possibly go even lower and reach the 1.0450 trading range. If the pair closes the trading session over 1.0650 points, then this could extend the pairs buying interest at 1.0700 points.

USD/CAD Technical Analysis: December 15, 2016
The pair USD/CAD moved on a lower price channel in the chart that ended the downtrend at 1.3080 level from 1.3536 level. A minor consolidation is seen which could be followed by a rise in price towards the next target at 1.3500 mark. The support level is sited at 1.3200 and if this remains strong, the upward direction would continue.

EUR/GBP Technical Analysis: December 15, 2016
There is not much activity in the market specifically for the EUR/GBP pair. This could be because of the British Rate announcement scheduled to be publicize this day. It is possible for the price to break lower than the 0.83 handle. When the price surges, sellers could take the lead with opportunities in selling as it implies exhaustion close to the 0.86 handle.

USD/CAD Technical Analysis: December 19, 2016
The US homebuilding declined together with the greenbacks that weakened on Friday. On the other hand, the data for oil prices is positive which brought a favorable result for the loonies. The USD made an attempt to expand its gains also on Friday. Buyers were able to push the price towards 1.3400 region prior to the area of 1.3330 by which the pair found a stable barrier in 1.3400, then continued to depreciate.
Furthermore, the prices slowed down after it touched the aforesaid level and failed to hold its recent gains. As shown in the 4-hour chart, the price cross over the 100 and 50-EMAs upwards and tested the 200-EMA. Both 200 and 100-day moving averages slid down while the 50-EMA climb. Resistance is seen at 1.3400, support settled within the 1.3330 region.
The MACD increased which confirmed strength for the buyers. The RSI lies around the overbought zone.
The USD/CAD is expected to drove towards 1.3330 as its support. Supposing the level is successfully broken below, the next level will be 1.3260. Mainly, the pair seems overbought so it prevents corrective actions towards the 1.32 handle.

GBP/USD Fundamental Analysis: December 20, 2016
The GBP/USD pair exhibited consolidation and range trading during the past trading session, with the currency pair now trading over 1.2400 points with more consolidation plus a bearish bias for todays sessions. The currency pair initially exhibited positive movement during the earlier sessions but dropped in value as yesterdays trading sessions progressed. There were economic releases from the UK during yesterdays session, but the Scottish Prime Minister has released a statement which inadvertently threatens the UKs Brexit process after Scotland decided to remain in the European Union, whereas the whole of UK has already decided to relieve themselves from the eurozone. This has already increased the risk of the already very muddled Brexit process since Parliament members are now in the middle of debating the validity of Article 50 which is a vital part of the said process.
For todays trading session, there are no major economic releases expected from the UK but the recent strength of the USD could dominate the whole market, and the continuing confusion with regards to the Brexit process could increase the downward pressure on the GBP/USD pair for the coming weeks. Any bounce found in the currency pair should be immediately seen as a short opportunity for this particular currency pair.

AUD/USD Technical Analysis: December 20, 2016
The Aussie is on its 6-month low and further weakened as it looks forward for the issuance of the AAA-rated budget for the Australian government. The minutes of the meeting will be release this morning by the Australian regulator.
Despite of the strengthening of USD on Monday, the AUD established a weak position. The recovery occurred on Friday from its recent low 0.7270 had slowed down within the 0.73 since a new bout arise in the pressured area that pushed the market towards a lower place.
The price reversed the level and lost its legs towards the 0.7250 region. The 50-EMA pass over the 100-EMA in a downward position. All moving averages pointed lower. Resistance touched the 0.7300, support entered the 0.7250 area.
The MACD grew less which means a stronger stance for the sellers. RSI lies in the oversold territory.
Sellers are able to expand its gains through the marks 0.7200 and 0.7250.

USD/CAD Fundamental Analysis

The USD/CAD pair is in consolidation within the predicted range. It is moving in an upward direction which was supported by the strong U.S. dollar which may persist for quite some time including in the medium term considering the market trend in preparation for the rate hike.

The market positioned a 55 basis points with the next 2 to 3 rate hike in mind for next year as mentioned in the last Fed meeting. There is a tendency for the price to overshoot as this will be the focus in the market. In turn, this will be beneficial for the greenback. Regards to oil prices, it is in consolidation with the strong market sentiment about to fade and shifting its focus to its execution instead. The Bank of Canada is projecting the economy is doing well but the not in the real data.

It is foreseen that once Trump would officially take charge in January, this would balance out the trade between U.S. and its neighboring countries. This could greatly affect the loonie which would then force its central bank to reduce rates. These two contradicting events would contribute in the surge of the pair.

There will be no major news to be released today. It may stay to consolidate within range giving a bullish tone in the financial market.

GBP/USD Technical Analysis: December 20, 2016
The successive events regarding the dollar stabilization due to the plans of Fed for 2017 plus the empty calendar of the United Kingdom had weighed on the sterling. The cable pair is trending in the short-term descending channel. Moreover, the GBPUSD struggled to reach the 1.2500 region during the early trades that took place yesterday. The buyers failed the battle which caused them to drop its gains. The aforesaid region turned down the British currency which made a steep decline pointing to the 1.24 handle during the mid-session of Europe.
The pair surpassed the 1.24 mark in the onset of New York trading and resumed to move through the 1.23 region. Resistance is seen at 1.2400, support sits at 1.2300 region.
The indicators continued to sink around the negative zone. The price rebounded the 200-EMA as shown in the 4-hour chart. The 100-EMA coupled with the 200-day moving averages headed upwards, at the same time the 50-EMA shifted to a lower point. The MACD histogram traded in the downside. RSI hovered in the oversold levels which indicate a new downtrend.
It seems that a bearish sentiment prevails. Furthermore, it is much anticipated that the GBP/USD will enter the 1.2400 range.

GBP/USD Fundamental Analysis: December 21, 2016
The GBP/USD pair is now struggling to cope with the effects of the markedly low liquidity during this holiday season, much like other currency pairs. However, the GBP/USD managed to fare relatively better in terms of market volatility as compared to other currencies since it had a 100-pip range for the previous trading sessions. In spite of the USDs current strength becoming the dominant feature of the financial market, the lack of market volatility has managed to offset the USDs strength and has become advantageous to other currencies such as the sterling pound. The USD is expected to regain market control eventually, but until that happens, then the GBP could still range and consolidate at the lower region of 1.2500 points.
As the Brexit process resumes, the GBP/USD is expected to trade with a bearish bias for the short term and medium term, especially since Scotland is apparently disagreeing with UKs plans to leave the European Union and the UK will have to exert more effort in order to negotiate with all involved parties and make way for an easier Brexit process. Theresa May will also be needing additional support as the Brexit process begins, which is expected to become a long and arduous process.
For todays session, there are no major news releases from Britain, and with the holiday season fast approaching, liquidity is expected to drop further which could lead to more ranging and consolidation on most currency pairs.