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USD/CAD Fundamental Analysis: February 22, 2017

The USD/CAD has still managed to keep itself afloat in spite of a small increase in oil prices during the previous trading session. The currency pair continued to trade within its ranges, but this could be a cause for celebration of the pairs bulls as the USD/CAD traded within its range highs with no hints of weakness whatsoever. This movement was also partly due to the recent surge in the dollars value which ensured support for the pairs bulls.

As of this morning, the USD/CAD has somewhat weakened in stance and spent most of the session consolidating within its range highs with no actual direction. The USD/CAD bulls are now monitoring the release of the FOMC minutes, whose hawkish outlook might possibly lend some much-needed support for the pair and finally create some sense of direction. If the minutes are able to meet market expectations, then the USD/CAD pair could possibly move towards 1.3200 and could even go beyond this range.

For todays session, we have the FOMC meeting minutes set to be released as well as the release of the US housing data. Meanwhile, the Canadian economy will be releasing its core retail sales data which will have to be closely watched by the USD/CAD bears in order for them to regain dominance over the currency pair.

NZD/USD Technical Analysis: February 22, 2017

The New Zealand dollar against the U.S. dollar dropped on Tuesdays session. Later on, a strong support was found close to the 50% Fibonacci retracement level to reverse the trend and form a hammer pattern. This signals a bullish tone with chances to break higher than the peak of the candle pattern formed towards the next target at 0.7250 level. This could further go up towards the 0.7350 level. Traders should also look out for the commodity markets which would influence the new Zealand dollar. The currency prices is relative to the commodity prices, as it goes up, the currency also moves higher.

USD/JPY Fundamental Analysis: February 22, 2017

There is a high demand for riskier assets that pushed the USD/JPY pair to climb on Tuesday session. Also, the appreciation of dollar was influenced by a stiff sell-off in Euro because of increase in political worries.

Moreover, the stock market surged that influenced the Japanese yen higher because of the carry trade while the recent remarks of Fed officials drove the appreciation of the U.S. dollar. The pair closed at 113.673, increased by 0.582 or +0.51%.

Cleveland Fed President Loretta Mester remarks on Monday also significantly affected the next day trading. This was pushed further by the announcement of Philadelphia Fed President Patrick Harker saying the pending next rate hike on March.

U.S. economic data results for the U.S. Purchasing Managers Index (PMI) was at 53.9 in February, lower from the reported 55.6 in January and the expected result to be at 55.8.

The continued low borrowing rates made the San Francisco Fed President John Williams to have a dovish sentiment. Similar with Minneapolis Fed President Neel Kashkari comments saying the there is no need to rush and go for inflation right away.

The Japanese yen was also influenced by rise in political risk in Europe and excessive sell-off by Euro. The rhetorics of French candidates Marine Le Pen and Dutch candidate Geert Wilders prior to elections has influenced the market sentiment.

Gold investors also reacted to the latest Existing Home Sales data in U.S. trading. The data is predicted to give e a 5.55 million unit gain. On the other hand, the FOMC Member Powell is scheduled to give a speech today. The Fed minutes for February Monetary Policy meeting will also be released which is highly anticipated.

It is anticipated for the market to have high volatility with the release of major economic data and the decision from the monetary policy meeting and connect it with the remarks before the Congress of Fed Chair Janet Yellen last week. Investors will try to get hints on chances for the Fed rate hike on March. As of now, there is 17% chances for a rate hike in March while 47% in June regarding the Fed fund futures.

EUR/USD Technical Analysis: March 1, 2017

The consumer price index of France inched up, however, it was unable to meet the projected level. While Italys rate of inflation remained consistent despite the forecasts about its potential decline. Moreover, the jobless rate in Germany is expected to decrease as mentioned by analysts and the Germans Manufacturing Purchasing Managers' Index is assumed to remain steady.

The single currency was not able to make some reversal on Monday. Buyers touched the 1.0631 region by which the spot eyed some renewed offers. The price turned back under the 1.0600 level and posted its session lows near 1.0567 area amid Asian session.

The EURUSD attempted to break the barrier in the European hours. The EUR made a slight recovery few of its losses during the night upon approaching 1.0600 in the mid-EU trades.

The price is close to the 50-EMA as it positioned in the neutral zone during the earlier trading while the 100-EMA preserved a bearish pattern and the 200-EMA drove downwards.

Resistance settled at 1.0600, support plunge towards 1.0550.

The MACD is situated at the centerline. When the indicator pierced the positive region, the strength of the buyers will grow while an entry in the negative territory will signal sellers to dominate the market. The RSI appeared to be neutral.

Furthermore, bullish momentum is possible to reclaim. The next target of the pair is 1.0630. The EUR/USD may resume its ascending movement to 1.0650.

USD/CAD Technical Analysis: March 1, 2017

The greenbacks were able to gain strength versus other commodity currencies. The growth occurred due to the decline in oil prices and the investors interest regarding the US President policy. The announcement of the Central Bank of Canada about the interest rate decision is much awaited. It is expected that the rate will continue to be at 0.50%.

The price has spiked near 1.3190 on Monday but the level seems difficult to deal with. After the USD reached the region, the upward impetus lost its momentum. The USDCAD is in a tight range close to the barrier amid European hours.

The price takes up the 50-EMA and lead the 200-EMA higher and the entire moving averages ascended as indicated in the 4-hour chart. The major resumed its advancement on top of the MAs eventually. Resistance touched 1.3190, support hit 1.3120.

The MACD strengthened which imposed a buy signal. The RSI is positioned in the overvalued zone which favors a downtrend.

The immediate focus is at 1.3120 support region. A gap within this mark will shift the attention towards 1.3050.

AUD/USD Technical Analysis: March 2, 2017

The positive GDP of Australia and strong data of China PMI provided support to Aussie which further prevents it from acquiring losses. The period of bullishness ended on Wednesday while the bullish spike wane having touched the 0.770 level. The AUD loosened its grip upon its gains as the Asian session closes.

Sellers failed to regain 0.7650 despite series of attempts. Upon reaching the region, the spot turned back on top of 0.7650 during the morning trades of Europe.

As presented in the 4-hour chart, the price tested the 100 and 50-EMAs, seeing the 50-EMA en route downwards, 100-EMA is in the neutral ground and the 200-EMA preserved a bullish bias.

Resistance is found at 0.7700, support is at 0.7650.

The MACD declined which favored strength for the sellers. RSI stayed in the neutral area.

The commodity-linked pair will resume its bearishness when the US dollar sustained its current flow. A close down under from the 0.7650 would likely risk the 0.7600 mark.

EUR/USD Technical Analysis: March 2, 2017

The investors were disappointed to the speech made by Trump in the Congress, as the US President did not mention further details regarding his infrastructure and tax reform plans. The Fed helped the greenbacks to recover from the sell-off which renewed hopes for the possible rate hike in March.

The recovery slowed down at 1.0627 level on Tuesday. The price took another direction and continued to plunge lower. Traders made a cut within 1.0600 during the Asian trades pushing the European currency downwards. The dollars bull take control of the opening of the EUR stocks and gapped the 1.0550 mark then drove the pair lower. Having reached 1.0536, the descending trajectory seems short-lived.

A renewed selling interest appeared prior to the opening of the New York session which pushed the price further down

The EURUSD lead the 50-EMA downwards and the price is placed under the moving averages as set out in the 4-hour chart. The 50 and 100-EMA headed by while 200-EMA appeared in the neutral zone. Resistance touched 1.0550, support sits in the 1.0500 mark.

The MACD is seen at the centerline. When the indicator approached the negative region, the strength of the sellers will increase. An entry through the positive territory will manage the overall market. RSI is close to the undervalued territory which confirms a renewed downtrend.

In case the price hovered down from 1.0550, the major could possibly extend towards 1.0500. A break under 1.0500 could revive support at 1.0450.

GBP/USD Fundamental Analysis: March 2, 2017

The GBP/USD pair has recently been under severe pressure as a result of the real state of each currency starting to show through just like every start of a new month. A lot of analysts have been saying that the sterling pound might become the most adversely affected once the dollar rally sets in, but last week the GBP has still managed to save itself somewhat even though both the US and UK economy were faced with various economic and political uncertainties.

However, since the uncertainties surrounding the UK economy are expected to be more on the long-term side as compared with that of the US economy, the dollars rally would soon gain momentum long after the issues surrounding the US have vanished, and this is expected to have a significant effect on the stance of the GBP/USD pair. The market is now witnessing this phenomenon during the past days as the USD exhibited its newfound strength as an effect of Trumps statements regarding tax cuts and the Federal Reserves announcement that a March rate hike is still being highly considered by the majority of Fed officials. This has caused the GBP/USD pair to shot down from 1.2400 down to 1.2300 and is now currently situated within the 1.2250-1.2300 barrier and would likely drop further in value, this, along with Scotlands possible move of leaving the UK is bound to spell disaster for the state of the sterling pound.

The UK will be releasing its Manufacturing PMI data and the US will be releasing its unemployment claims data during todays session, but the dollar rally is expected to be reverberating theme in the market, which means that the GBP/USD pair would most likely remain under pressure for the rest of todays session.

GBP/USD Fundamental Analysis: March 6, 2017

The GBP/USD pair went through its worst week since the beginning of the year as the pair suffered greatly from the dominance of the dollar strength over the market last week. Unlike the euro, which has somewhat managed to recover as last week came to a close, the British pound continues to remain under pressure and could possibly retreat further in the coming weeks as the USD consistently regains its momentum.

The GBP/USD suffered last week primarily due to month end currency flows and this has caused the currency pair to revert back to 1.2300, with the pair continuing to trade just under that barrier for the rest of last week. The USD retreated slightly after Yellens statement which further stoked the fires for a possible interest rate hike this month, but this brief weakness in the USDs value was still not enough for the GBP/USD to increase in value. This is because the sterling pound has its own set of issues that it needs to fix and the currency is not hugely dependent on the value of the US dollar unlike other major currencies. From the Brexit process to a possible Scotland referendum, the GBP/USD pair might take a while before it can finally get back on its feet, and as such all moves pointing to the upper part of the chart should be seen as a sell opportunity.

For this week, the UK will be releasing its annual budget data while the US will be releasing its NFP data, both of which are expected to dominate the movement of the currency pair. The NFP report is expected to come in as highly positive which could put the GBP/USD pair under more pressure, thereby endangering the support region of 1.2200 points.

USD/CAD Fundamental Analysis: March 6, 2017

The USD/CAD bulls were finally able to take control of the said currency pair, with the effect of this particular move becoming evident in the market. The pairs bulls and bears were both locked in a struggle during the past few weeks, with the major support barrier of 1.3060 the disputed region within the currency pair. The Canadian dollar momentarily strengthened as a reaction to a jump in oil prices and a consistently strong economic data and the USD also experienced a significant weakness on the board.

However, since last week, the USD/CAD began experiencing major changes in its stance. The former part of last week was dominated by month-end currency flows, which caused the CAD to be subject to tremendous downward pressure. The Bank of Canada also released its rate statement as well as the CAD rate, with the BoC meeting market expectations by maintaining its current interest rates. However, the central bank also reiterated that they were highly concerned with average wages data and the number of working hours although other economic data seemed good enough for the central bank. This simply means that there would be no expected rate hike from the BoC in the medium term, and this has somewhat caused the Canadian dollar to retreat further. Meanwhile, the dollar rose amid expectations of a March rate hike, and these factors has caused the currency pair to go over 1.3300 points where it is currently situated.

For this week, Canada will be releasing its unemployment rate data as well as its trade balance data, while US will be releasing its NFP data, all of which are expected to inject more volatility into the USD. The USD/CAD pair could possibly move towards 1.3500 and further, with corrections viewed as long-term sell opportunities.

GBP/USD Fundamental Analysis: March 7, 2017

The GBP/USD pair, just like the majority of currency pairs, spent the previous trading session in a ranging and consolidating manner. The main reason for this activity of most currency pairs is that these pairs are preparing themselves for the onslaught of volatility which could occur towards the end of the week, and this has caused the GBP/USD pair to get ensconced within a tight trading barrier for the rest of the previous trading session.

There were no major economic and political events which influenced the movement of the GBP/USD pair and this is why the currency pair was unable to go past the 1.2250-1.2300 barrier, with neither the bulls nor the bears managing to take control of the currency pair. However, the pair is expected to remain under pressure as the various Brexit-related concerns surrounding the UK continue to affect the stance of the currency pair. The sterling pound is also finding it very hard to recover from its recent losses since the bears almost always resort to selling off the sterling pound once a bounce appears in the direction of the pair.

There are no major economic data coming from both the UK and the US today, and this is why the GBP/USD pair is expected to continue its ranging and consolidation with no definite sense of direction. The currency pair will continue to remain within its current tight trading barrier with a bearish undertone.

GBP/USD Fundamental Analysis: March 8, 2017

The GBP/USD pair continues to trade very weakly during the previous trading session. This could be initially attributed to the strengthening of the USD which was reflected across the board, but what has really affected the pound here is the fundamentals underlying the UK economy, as well as various uncertainties which is constantly putting pressure on the value of the GBP/USD pair.

Once the Article 50 gets invoked, the Brexit process is pretty much locked in, and this means that there would be several negotiations between EU and UK leaders immediately after the invocation. UK leaders are expected to be stricter with regards to EU trade access since the majority of them would like the UK to realize the several benefits that it would lose once the country finally becomes a separate nation from the European Union. This uncertainty as well as the tediousness of the Brexit process is likely to take its toll on the GBP/USD pair and this is starting to become more evident as the currency pair continues its weak trading stance, with the currency pair just hovering over 1.2200 points.

The UK will be releasing its yearly budget release today, and the country is expected to paint a pretty picture of their economy in order to boost public sentiment. This might give temporary resolve for the sterling pound but would eventually fizzle out as the fundamentals continue to put downward pressure on the state of the GBP/USD pair.

USD/CAD Technical Analysis: March 9, 2017

The Canadian dollar was able to preserve its stance compared with the US dollar yesterday. The loonie received some support from the positive figures of Trade Balance a few days ago. Investors wait with expectation for the statistics of US labor market which could establish a route for the USD/CAD.

The pair was trading flat and toggled in the middle of the Wednesday night session. The price is positioned in tight channels of 1.3400 - 1.3430 all throughout the night.

Moreover, the USD resumed its short-term bullish trajectory during the earlier trades. The major further pulled out from the 1.3400 region and rallied higher heading to 1.3470.

As rolled out from the 4-hour chart, the price was developing beyond the moving averages. It further mentioned the 100 and 50-EMAs preserved its bullish pattern while 200-EMA move over the neutral grounds. Resistance touched 1.3470 mark, support hit 1.3400.

The MACD histogram is positioned within the same level confirming buyers strength. RSI oscillator hovered near the overbought readings and expected to support a fresh upward movement

The bullish market structure is expected to remain in its place in the short-term. Bulls next target is at 1.3470.

GBP/USD Fundamental Analysis: March 13, 2017

The GBP/USD pair traded rather dismally for the majority of last weeks sessions as the concerns on the UK economy and the sudden surge in the value of the USD has kept the sterling pound under constant pressure for the rest of the week. The strength of the USD has recently been subject to fluctuations, and while it ended the week on a stronger note compared to other major currencies, for the euro and the British pound, it was otherwise. The invocation of the Article 50 is drawing nearer, and this has also led to an increase in Brexit-related concerns and has also pushed the pair down towards 1.2200 points and so far it has been unable to recover from this particular region.

A lot of analysts have been saying that any bounce in the currency pair should be seen as a short trading opportunity, and since the sterling pound is not expected to make a full recovery anytime soon and with the USD gearing up for more medium-term advancements, the currency pair would most likely feel the impact of the pronounced weakness in the sterling pound.

For this week, the UK will be releasing its claimant count change data, earnings index, as well as a rate statement and a rate announcement from the Bank of England. On the other hand, the US will be releasing its retail sales data, its PPI data and CPI data, which are all expected to inject some volatility into the currency pair. But the spotlight for this week will mostly be directed to the FOMC rate announcement, where the central bank is expected to implement another interest rate hike, which will likely be followed by a hawkish statement from Fed officials. However, it has yet to be seen whether the banks statement would be hawkish enough for the bulls to push the pricing of the USD upwards. If this happens, then the GBP/USD pair could possibly test 1.2000 points in the near future.

USD/JPY Fundamental Analysis: March 13, 2017

The USD/JPY pair posted impressive gains during the previous week, with the majority of the past weeks gains being attributed to the possibility of a quarterly interest rate hike by the Federal Reserve for this year. However, as Fridays session commenced, the currency pair retreated slightly after economic data coming from the US showed that the countrys economy might not be stable enough to implement another interest rate hike immediately this coming June. The USD/JPY pair finished off the previous trading week at 114/738 points after increasing by +0.65% or 0.744 points.

USD/JPY traders had initially believed that the March rate hike was pretty much in the bag, but the release of the NFP report last Friday has shed some doubts with regards to the timing of future interest rate hikes from the central bank. In addition, the average hourly earnings came in at 0.2%, falling short of the expected reading of 0.3%.

The USD/JPY could possibly retreat in value for this week as investors start adjusting to the weak NFP report, and the closing price of the currency pair would be likely determined by the monetary policy statement from the Fed this coming Wednesday. On Thursday, the Bank of Japan is expected to maintain its benchmark interest rates and could possibly cite references on the countrys present economic environment as well as other economic factors which might impact the central banks policy decision. The BoJ could also state that the increase in US interest rates might be good news for the Japanese economy as this could lend added pressure to the Japanese yen which could trigger a rise in exports demand.

EUR/USD Fundamental Analysis: March 14, 2017

The EUR/USD pair merely floated around during the previous session with no definite direction as the market prepares itself for the onset of economic data which is expected to hit the US market this coming Wednesday. The FOMC meeting will commence on Wednesday, where the committee is expected to make the rate announcement as well as another statement, which would hopefully contain confirmation of the much-awaited interest rate hike. As of the moment, the EUR/USD pair is currently trading at just over 1.0650 points and is expected to exhibit more ranging and consolidation as the market awaits the rate statements from the FOMC tomorrow.

Draghis speech yesterday did not do much to improve the current stance of the EUR/USD pair and was unable to induce added volatility into the currency pair. As of the moment the euro is still being kept afloat by last weeks events, particularly Draghis statement that the EU is already well on its way to recovery with regards to accomplishing its fiscal and economic goals.

For todays series of trading sessions, there are no major news releases from the EU while the US economy will be releasing its PPI data later today. But since the market is now focusing themselves on the release of the FOMC tomorrow, this particular piece of data is not expected to increase the pairs volatility rates. The EUR/USD pair could be in for more ranging and consolidation as the day progresses.

USD/CAD Fundamental Analysis: March 20, 2017

The USD/CAD pair lost over 200 pips last week and although the currency pair managed to make some measure of recovery before the week came to a close, it is obvious that the USD/CAD pair has now reverted to its larger ranges, thereby making it much more vulnerable to its range lows. The pair has incessantly moved towards 1.3500 points during the past few months but has been unable so far to break through this barrier, causing the currency pair to retreat to its bottom rungs at the 1.3000 region.

One of the reasons for this recent retreat in the USD/CADs value is that the USD has started weakening across the board as a reaction to the recent release of the FOMC rate announcement and the subsequent statement from the central bank. The interest rate hike from the Fed was already expected by the market and has not affected the course of the USD/CAD direction. However, the market was disappointed with the lack of enough hawkishness from the Feds statement after the central bank chose to remain neutral, leaving a lot of speculations in its wake with regards to the pricing of the next interest rate hike. As a result, the US dollar was subject to a lot of selling across the board, with the USD/CAD pair going down from 1.3500 to 1.3400 points and even want as far down as 1.3300 before finally hitting some solid support barrier which enabled it to hold on its own until the rest of the week ended.

For this week, the Canadian economy will be releasing its retail sales and CPI data while there are no expected releases from the US economy. If Canada continues releasing a slew of positive economic data, then the USD/CAD pair could possibly drop further in value and could reach 1.3100 points. This particular price action is pretty much expected from the currency pair since the dollar is also expected to drop in the short term as well. However, there is still a possibility that the pair will maintain its stance on the 1.3000 points and the dollar would revert, thereby pushing the currency pair towards 1.3500 points.

GBP/USD Fundamental Analysis: March 20, 2017

The GBP/USD pair had probably some of its best weeks in recent market history after the currency pair surged by almost 300 pips last week and closed down last weeks session near its range highs, which should be a cause for celebration for the pairs bulls. This move was also augmented by the recent weakness in the USDs value, thereby enabling the currency pair to recover from its recent lows at 1.2100 points and has caused the pair to move towards 1.2200 and 1.2300 points. The GBP/USD pair is now trading at just under 1.2400 and looks poised for more.

This recent increase in the GBP/USD pairs value was due to the Feds decision to keep mum on the schedule of its next interest rate hikes while at the same time increasing its interest rates. This uncertainty did no good for the dollar bulls since the bulls have been expecting a strongly hawkish statement from the central bank. As a result, the USD was met with large-scale selloffs, which enabled the currency pair to move towards 1.2200 points. The sterling pound also got another boost from reports that one BoE official had voted in favor of an interest rate hike in order to help support the countrys economy. As a result, the GBP/USD pair managed to go past 1.2300 points and closed down the week at 1.2400 points.

The currency pair is expected to maintain its bullishness in the short term but could possibly weaken in the medium term as the Brexit process begins which will put the GBP/USD pair under considerable pressure. There are no major news releases from the US but the UK will be releasing its retail sales data. This recent surge in the GBP/USDs value is most likely to fizzle out eventually and would not be sustained in the long run.

USD/CAD Fundamental Analysis: March 22, 2017

The price action of the USD/CAD pair during the previous session was mostly dictated by the Canadian retail sales data, which came out better than expected. However, one downside to this is that the positivity of the data was somewhat offset by the data last month, which was revised on a much lower level. This correction has then helped remove some of the pressure off of the currency pair and enabled it to move towards 1.3350 before finally settling at just under this particular range. The pair eventually dropped towards 1.3260 where it is currently situated.

The pair was met with a lot of buying and this has helped the pair to slowly recover towards 1.3300 points, and the correction in the countrys retail sales data enabled the pair to go even higher. The Canadian dollar has also weakened as a reaction to the repeated failed attempts of oil prices to recover from its recent slump, causing the USD/CAD pair to recover towards 1.3350 points and even surpassed this particular barrier.

For todays session, there are no major news releases from the US economy aside from the oil inventory data, which is expected to affect the status of the CAD based on the currencys previous price action. Expect the Canadian dollar to drop in value as a reaction to this particular data and consolidate within 1.3300-1.3400 points for the duration of todays trading session.

EUR/USD Fundamental Analysis: March 22, 2017

The EUR/USD pair was able to move towards 1.0800 points, with the currency pair managing to stay at over 1.0800 for a brief period. However, since the pair has not yet managed to make a clean breakthrough at this very tough barrier since it only momentarily peeked over this level, the pairs surge was eventually met with large selling and had no choice but to retreat at just under 1.0800 points.

However, in spite of this particular occurrence, the EUR/USD pair is still trading on a somewhat stronger note, thanks to the pairs bulls who continue to trade on a strong streak. The EUR/USD pairs move at under 1.0800 now seems as just more of a correction as the pairs price are still well-maintained within its range highs. This is why the currency pair might give another shot at surpassing the 1.0800 barrier for today, especially since the forthcoming French polls might have Macron as its next President after all. This is a sigh of relief especially for the EUR currency, since Le Pen, Macrons opponent, is a widely-known critic of the euro currency. In addition, the pairs bulls are getting a lot of encouragement from the very bullish stance of the ECB, who recently stated that the strength of the euro can be mostly attributed to an improvement in the EU economy. The USD has also been struggling to make significant gains in spite of the recent rate hike and there is a very definite possibility that the pair could possibly move towards 1.1000 points once makes a clean break through 1.0850 points.

There are no major news from both the EU and the US economy for today, and this is why the EUR/USD pair might again attempt to break through its barrier. Traders could opt to wait whether the currency pair is able to surpass 1.0850 during the course of the day.

GBP/USD Technical Analysis: March 22, 2017

The British currency strengthened as the UK CPI in February exceeded expected results. On one side, the speech of BOE Gov. Carney was in focus yesterday.

The pound established an active stance in the earlier trades after an uncertain position held amid Asian hours. The price has seen spiked in the morning session of EU.

Buyers surpassed 1.2400 and made an advanced move afterwards. The upward momentum is losing its steam with a few pip under 1.2500 mark.

The 200 and 100-EMA resumed to move lower while 50-EMA remain to be in a bullish pattern and the major crossed upwards the 200-day moving averages noted in the 4-hour chart.

Resistance is at 1.2400, support lies at 1.2300.

The histogram grew less indicating a weak position of the buyers as well. RSI oscillator headed higher.

There still a possibility for an extension towards 1.2500. Should buyers collect enough strength to attain 1.2550 in the future.

GBP/USD Technical Analysis: March 24, 2017

The British currency was able to gain strength on Thursday considering the strong report of Retail Sales.

Traders took the GBPUSD near 1.2500 level during the night as it moves closer the level. Bulls tried breaking again through the post-opening of London session, however, attempt remains unsuccessful.

As shown in the 4-hour chart, the price resumed developing well on top of the moving averages whereas the 100 and 50-EMAs drove upwards while 200-EMA appeared neutral.

Resistance came in at 1.2500, support entered 1.2400 mark.

The MACD retained its position indicating buyers strength. The RSI oscillator was confined in the overbought territory.

When the pair brings about consolidation over 1.2500, the next focus is 1.2600 resistance region.

EUR/USD Fundamental Analysis: March 24, 2017

The EUR/USD pair exhibited a sideways price action for the majority of yesterdays session as the market awaited the results of the US healthcare bills impending votation. A lot of market players believe that this particular bill is essential to the Trump administration, although some are also speculating that the current administration might be in danger if the bill does not get the required quorum, however this is not how the issue is supposed to unravel.

The uncertainties surrounding the healthcare bill would be clarified by the fact that the Trump administration would nevertheless continue with its present ways regardless of how the healthcare bill pans out. The market had generally expected the bill to conclude to a vote yesterday and this has prompted the EUR/USD pair to remain within its tight-range trading but then the discussions and negotiations within the bill took longer than expected, and a vote could not be made yesterday. As such, the market is hoping that a vote would finally happen within todays session regardless of the results of the said voting on the bill. Until then, the EUR/USD pair is expected to remain trading sideways as the market waits for the results of the said vote.

Fed member Evans will be speaking during the latter part of todays trading session but this is not expected to make a significant dent in the USDs price action. The fate of the US dollar is largely dependent on the results of the healthcare bill vote and if the bill does get passed, then this would mean good news for the dollar and could see the EUR/USD pair breaking the 1.0750 barrier and head towards 1.0700. Otherwise, the EUR/USD pair could possibly test the 1.0800-1.0830 barrier, where it might eventually push through.

GBP/USD Fundamental Analysis: March 27, 2017

The 1.2500 barrier continues to be a very crucial barrier for the GBP/USD pair. A lot of analysts continue to say that unless the currency pair manages to break through this particular region, then the GBP/USD pair could possibly retreat to the 1.2100 region. This is one of the reasons why the pairs bulls and bears are fighting it out within this region. Meanwhile, the Article 50 is expected to be invoked this coming March 29, and as based on the market stats, more traders are now piling up on the pairs shorts as the market expects the currency pair to drop once the invocation commences. The high expectations from the market could possibly spell danger for the currency pair.

Since the market very rarely does what the market expects of it, the risk of a possible short squeeze in the markets could possibly be very bad news for the majority of currency traders. This is why it is very vital to wait and see first whether the currency pair would indeed manage to break through 1.2600 and take profit where it is already short. The data from UK last week has had virtually no impact whatsoever on the countrys economy, and this has heightened the risk for a possible upmove.

For this week, there are no major news releases from the UK economy while the US will be releasing its GDP data. The GBP/USD pair is then expected to undergo a lot of volatility this week especially with the invocation of Article 50 and the onset of month end flows.