Daily Market Analysis by ForexMart

GBP/USD Fundamental Analysis: January 26, 2017

The sterling pound has been consistently increasing in value after a period of constant downward pressure ever since the conclusion of the Brexit vote. From trading to just below 1.2000 points, the GBP/USD pair has now recovered and has reached just below 1.2700 points without any significant corrections during the past few weeks. This was partly due to the clearing up of the Brexit process, as the market does not like any kind of uncertainty, whether on a positive note or a negative note.

The initial confusion surrounding the Brexit process had previously put downward pressure on the movement of the sterling pound, but as Theresa May finally laid out her plans for the hard Brexit process last week including a wholly different kind of negotiations on the free tradezone, this has lended some much-needed support for the sterling pound. In addition, the UK Supreme Court has also made it clear that the Parliament must approve first before the invocation of Article 50, thereby ensuring stability during the entirety of the Brexit process. All these have erased any uncertainty on the Brexit process and has caused the GBP/USD to jump upwards and steadily go towards the 1.2700-1.2800 region.

UK will be releasing its Preliminary GDP data today and this particular bit of data is expected to carry out the recent string of positive economic readings for the region in spite of the pressure from the Brexit process. The GBP/USD pair could then propel its way towards 1.2700 and could possibly exceed this level which could then become a crucial point for the bears and bulls of this currency pair.

EUR/USD Fundamental Analysis: January 26, 2017

The EUR/USD pair exhibited ranging and consolidation movements within the range of its trading highs during the previous trading session, with the market already coming to terms with the fact that the Trump administration is indeed here to stay for the next four years and is already preparing for whatever Trump might be implementing in the days and months to come. This has helped the market make sense of Trump’s movement in some way, and if it becomes evident that Trump might not be completely altering things, then the dollar could be in for some eventual increase in value.

The EUR’s movement has been largely dominated by the dollar’s waxing and waning, with the market now shifting its focus to the President and his next move instead of the Fed’s movements. This is why in spite of repeated comments from Fed officials that the central bank will be implementing 2-3 rate hikes this year, this has done nothing to lift up the value of the USD. In addition, the EUR/USD pair is also steadily moving towards the resistance-heavy area of 1.0800 points, and with the dollar strength coming back anytime soon, the currency pair might be subject to corrections and could possibly revert back to its previous lows of 1.0400 points.

The Eurogroup meetings will be held during today’s sessions, with the meeting centering on geopolitical and economic concerns, but there are no major announcements that are expected to stem from this particular assembly. US will also be releasing its unemployment claims data for today, however the EUR/USD is expected to continue ranging and consolidating and will most likely spend the rest of the trading session at 1.0700-1.0800 points.

EUR/USD Technical Analysis: January 26, 2017

The European currency got afflicted by the selling interest during the early trades yesterday as the release of German Business Climate came in negative. The demand for the EUR surge amid EU hours, this supported the pair to regain as it rack up through its recent highs

Bears attempted to dominate the overall market on Wednesday. Upon the onset of the EU session followed by a night of consolidation, the sellers tried to break the price lower.

On one side, the price ploy towards the 1.0700 level but the selling pressure seems short-lived. The EURUSD met some fresh bid on top of 1.0700 region and continued to expand its corrective moves with a risk appetite.

The euro rallied and and erase its losses during noon trades on Tuesday. The 4-hour chart represented the price stays on top of the moving averages. The 100 and 50-EMA keep its bullish signals while 200-EMA was trending neutral shown in the same timeframe. Resistance highlighted 1.0750 mark, support holds 1.0700 handle.

The MACD indicator increase which favored buyer’s strength.RSI hovered around the overvalued territory.

The bullish sentiment is expected to prevail according to the 4-hour chart. Should the pair established a breakout around the 1.0750 resistance region will allow for the placing of buy orders. The major is able to extend its profits up to 1.0800 eventually. However, failure to surpass 1.0750 will cause for a decline to 1.0700.

GBP/USD Technical Analysis: January 26, 2017
The UK CBI Industrial Trends Orders increased as the new year enters which provided decent support for the GBPUSD. Meanwhile, many investors weigh up to the remarks of Mark Carney. The GDP of the United Kingdom for the fourth quarter is highly anticipated by the market as traders expects for a modest decline.
The cable maintained a rangebound position during the morning trades on Wednesday. The price currently trades in a tight range near 1.2500. The renewed buying impetus pushed the pair through 1.2600 level succeeding the opening of London session. The spot resumed its development above the moving averages based on the 4-hour chart. The 50-EMA crossed over the 100-EMA upwards and both moving averages employ an ascending trend, while the 200-EMA headed downwards. Resistance touched 1.2600, support reached 1.2500 mark.
The MACD still sits on the same area which favored strength for the buyers. RSI consolidated in the overvalued zone confirming a new higher move.
The bearish outlook will be preserved in order to lead risks downwards to 1.2400 for the upcoming weeks. Moreover, the price sustained its bullish slope. The pair is bound to move closer to the 1.2700 range but the spot are compelled to take out 1.2600 first so as to renew the bullishness.

USD/CAD Technical Analysis: January 26, 2017

US President Trump plans to restore the two major oil pipelines, Keystone XL and Dakota Access, weighed on the Canadian currency but the loonie was able to recover in spite of the drop in oil prices.

The US dollar preserved its stance against the CAD. The sellers paused to consolidate their gains subsequent to the sharp sell-off. The price is confined on top of the 1.3120 level during the morning trades followed by a rejection in the Asian trades. The greens were pushed upwards by a renewed buying interests in the middle trading session of Europe.

Moreover, rate hike got failed and the downward pressure returned to the 1.3120 mark. The loonie lead the 50 and 100-EMAs downwards as stated in the 4-hour chart.

The USDCAD kept intact under the moving averages as the 100-EMA pointed downwards, 200 and 50-EMAs are neutral. Resistance is found at 1.3190, support settled around 1.3120.

The MACD pierced through the negative zone and if it kept its position, sellers will get the favor for further strengthening. RSI consolidated in the oversold territory.

The general outlook appeared to be bearish after the fall to the support area 1.3050 but the pair seems oversold. The possible 1.32 minor correction still have the tendency to emerge.

AUD/USD Technical Analysis: January 26, 2017


The AUD/USD declined on Wednesday’s trading session. The price stayed giving enough support at 0.75 and below. Although, it was able to reverse forming a bullish candle and it seems that the uptrend will persist towards the 0.7750 level. Yet, signs of breakdown would not be good but it needs to align with the downtrend of the gold market. With a lot of noise present in the lower channel, traders should expect high volatility in the market.


The market continues to be actively traded during the London Trading session. The Short-Term Interest Rate Trading (STIRT) market seems to be surprised with all the speculations intervening the market. The near-term trading may be favorable for equities and commodity markets with chances for higher returns but not active for the currencies. Moreover, the outcome of trading in Dow index overnight with the retreat of copper from a 19-month high that capped the near-term drop and its oversupply. Relying on the surged of the price, the Aussie will continue to attract investor for the near-term trading while the downtrend of the greenback continues.

NZD/USD Technical Analysis: January 26, 2017
The NZD/USD pair slumped on Wednesday’s trading session but recovered placed as a support. The Resistive level at 0.7350 is also coming strong that makes it an opportunity for short-term buyers. However, it may take some time to reach those levels while levels lower than the 0.72 mark also stands as supportive levels. This could affect the trading and become choppy but the bullish tone could persist in the short-term. For now, trading long term cannot be clearly imagined.
The inflation in New Zealand hike more than what was expected reaching the .7300 figure bringing tighter correlation between New Zealand and Australian CPI. Traders are cautious with the possibility of lower inflation for New Zealand as the results of yesterday’s CPI was lower than expected. Although the pair rallied higher than the .7300 mark and placed steadily with 30 pips difference. The Reserve Bank of New Zealand moves in a dovish tone to control the strength of the currency which has obstructed the impetus of the pair.

January 26, 2017

Singapore Manufacturing Data Rallied on Strong Exports Demand

The industrial production of Singapore rose at th quickest rate over five years in December driven by strong demand for electronics export reported by the Electronic Development Board. The Manufacturing data rose 21.3 percent in December 2016 while the output climbed to 6.4%. Even though the country encountered an increase in jobless rate reaching a six-year high in the past quarter, the results exceeded the forecast for two consecutive months from November.
Growth in the export-reliant city-state is starting to gain momentum when the country tried to prevent the recession last year since the economy recovered after the decline in the third quarter. The preliminary data of the Gross Domestic Product also rose at the fastest rate over three years in the fourth quarter.

January 26, 2017

Trump signed Exec Order for Controversial Pipelines

Environmentalists have predicted about the much-protected issue but only few of them presumed it would instantly take place. As US President Donald Trump signed an executive order giving a go-ahead signal for the completion of the controversial Keystone XL and Dakota Access pipeline. Based on reports, these infrastructure programs allow an easier shipping of fossil fuels towards North America.

This re-authorization order is included in the promise of Trump during his campaign which is about the lessening of internal procedures in blocking the pipelines.Moreover, the 70-year old politician was lambasted by climate activists together with Native Americans after he approved the memorandum for the pipeline projects.

The pipeline revival is the initial opposing move of current American leader against ex-President Obama’s environmental policies. As Obama’s presidency did not pursue this plan due to some environmental-related concerns.

January 26, 2017

Shinzo Abe Open to Possible US Bilateral Trade Deal after Trump Withdraws from TPP Agreement


Japanese Prime Minister Shinzo Abe has stated that he is currently open to a possible bilateral trade deal with US after President Trump formally exited from the Trans-Pacific Partnership Agreement. Abe stated on Thursday that the PM is completely open to one-on-one talks with US for a possible trade deal, and also added that the Prime Minister is currently in the process of finalizing the details of his summit with Trump. Trump and Abe will be having a conversation via phone before finally seeing each other in Washington this coming February 10. Shinzo Abe is a known proponent of the TPP and is constantly looking for ways to boost Japan’s relationship with US.

GBP/USD Fundamental Analysis: January 30, 2017

The GBP/USD pair was able to regain its footing and erase all the losses it had incurred during the latter part of last week. Although the increase in the value of the sterling pound was mainly because of the actual pound strength and not because of any drop in the value of the USD, the movement of the GBP was largely influenced by the stance of the US dollar. The US dollar has been relatively weak today and this has caused the GBP to increase in value and trade just below 1.2600, where it could possibly increase further in value.

The drop in the dollar’s value was mostly due to Trump’s policies, which did not sit well with majority of citizens as well as some members of the financial market. In addition, Trump’s attempts to alter trade agreements has already concerned quite a number of government leaders and it has already been clear that Trump’s recent movements are not to the best of interest of everyone involved in these issues. This has then prompted a drop in the USD’s value, and has set out the ground for the recovery of the sterling pound.

There are no major news releases scheduled for today, although the US will be releasing a string of highly important economic data for this week. The GBP/USD pair is most likely to trade with a bullish tone for today’s sessions.

USD/CAD Fundamental Analysis: January 30, 2017

The USD/CAD pair closed down the week on a much lower note as compared to the previous trading week after the Canadian dollar exhibited strength across the board and the USD weakened in value yet again even though it was able to recover during the latter part of the week. This particular recovery of the US dollar looks like it will be here for the long run, and this is why dollar bulls are putting added confidence to the performance of the US dollar in the next trading sessions. In addition, the Trump administration has already went about making changes and fulfilling its campaign promises, such as the shifts in Obamacare and the Mexican border wall, and the pulling out of US from trading agreements with Canada and other neighboring countries. This has created unrest in the market, and could open the doors for a possible trade war which is very bad news even for the US economy.

This has then prompted the USD/CAD pair to drop significantly in value from 1.3450 to 1.3000 points, but was saved by the sudden surge in the USD’s value as the previous week came to a close. The Canadian dollar also received support from the resiliency of oil prices, which managed to stay put in spite of the recent increase in the value of the US dollar. Market players are expecting this uptick in the USD/CAD to continue and could possibly extend up to 1.4000if it manages to stay just above 1.3000 points.

The Canadian GDP will be released this week, and governor Poloz from the Bank of Canada will also be releasing a statement this week. On the other hand, US will be releasing a string of important economic data including the NFP, wage earnings, as well as the statement from the FOMC. These are all expected to induce volatility in the market, and traders should either exercise caution or wait for things to settle before trading with this currency pair.

USD/JPY Fundamental Analysis: January 30, 2017

The USD/JPY pair was subject to high volatility last week, but the price action of the currency pair was practically the same since the currency pair merely reflected the range during the past week. However, in spite of this marked stagnancy, the market was still able to post gains during the past week. The USD/JPY pair closed down the previous trading week at 115.047 points after increasing by 0.514 points or +0.45%.

For this week, the Bank of Japan is set to release its Monetary Policy statement, the BoJ, Policy Rate, and the BoJ Outlook Report. Investors are expecting that the Japanese central bank will be maintaining its current monetary policy and will be doing the same for its interest rates, which presently stands at -0.10%. In addition, the central bank would also likely say that its current outlook for the Japanese economy is positive and that it expects its national economy to continue its steady improvement.

Meanwhile, the Federal Reserve is also expected to maintain its current benchmark interest rate but could also leave out hints with regards to the timing of its interest rate hikes in the future. Market traders are anticipating that the Fed would release its opinions on President Trump’s recent slew of executive decisions during his first week in office and what these executive orders mean for the central bank’s decisions in the future.

The US will also be releasing its Non-Farm Payrolls report this week and is expected to show that the US economy increased jobs by 170,000 for January, although unemployment rates remain stagnant at 4.7%. Average Hourly Earnings for US will also be released this week and is expected to have a reading of 0.3%.

EUR/USD Technical Analysis: January 30, 2017

The European currency slowed down followed by the improvement on the dollar’s stance. The euro were left flat-out due to the absence of the market-moving news in the calendar. The EUR resumed to move down smoothly overnight and break away from the near-term rising channel. The euro had traded mixed as the Asian trades opened and hovered in the tight ranges of 1.0650-1.0690.

The EURUSD is confined in the neutral position in the morning EU session and met renewed bids within 1.0700 level. It further rallied around the level, en route 1.0750 prior to the outset of NY hours.

According to the 4-hour chart, the price leads the 50-EMA lower and headed northwards together with the 100-EMa. The spot hovered on top of the 100 and 200-EMAs eventually. Resistance is seen at 1.0750, support hit 1.0700.

The MACD proceeded to the negative zone and if the histogram stayed in this area, the position of the sellers will improve. The RSI lies in the oversold territory near the neutral ground.

A close on top of the 1.0700 mark will produce renewed bullish indicator which is possible to advance towards 1.0750.

GBP/USD Technical Analysis: January 30, 2017

The sterling softened on the back of the demand growth for the greenbacks. The GBPUSD was able to recover few of its losses subsequent to the meeting between Trump and May. The US data showed some pessimism which further hit the pair higher.

The British currency lose its value against its U.S peer during the night trades on Thursday. The spot were removed from 1.2600 level and placed in 1.2500 region amid Asian session. The pound extend its losses during EU hours, en route 1.2500. However, the level stalled the seller’s progress and kicked the spot higher. The price resumed its development on top of the moving averages as shown in the 4-hour chart while the 100 and 50-EMAs stirred upwards and the 200-EMA sits in the neutral position. Resistance touched 1.2600, support jump in the 1.2500 mark. The MACD histogram weakened which further slowed down buyer’s position. The RSI escaped from the overvalued territory and came in through the neutral zone.

The bullish outlook generally exist in the market while the pair got an opportunity to make recovery in case it surpassed 1.2600. A breakout within the 1.2600 handle would direct to 1.2700. Furthermore, the prevailing selling pressure could impact the spot and pushed below the mark 1.2500.

NZD/USD Technical Analysis: January 30, 2017

The American dollar was able to sustain a bid tone last Friday. Meanwhile, the markets highly anticipated for the further plans of Trump coupled with the GDP of the country for the fourth quarter. The NZDUSD kept intact in the ascending channel pattern on Friday. The price were pushed by the downward impetus toward its lower limit last 26th of January. Moreover, a recovery lasted overnight showed insignificant results. The European traders solely managed to drive the spot upwards

The pair was able to expand its recovery during the NA session. The price continuously sits on top of the moving averages according to the 4-hour chart. The 100 and 50-EMAs moved higher while 200-EMA is positioned in the neutral trend mentioned in the similar chart. Resistance entered 0.7300, support reached the 0.7250 region. The MACD indicator confirmed weak buyer’s position as it decreased steadily.

Bullish sentiment was likely to prevail for today. The short-term goal for the pair is 0.7311.

AUD/USD Technical Analysis: January 30, 2017

The AUD/USD pair closed lower at .7546 with an increase of 0.0014 or 10.78% on Friday since the release of economic data of Australian Consumer Inflation report that pulled down the U.S. dollar higher than what was expected in the last quarter in 2016. This could prompt the central bank to reduce its benchmark interest rate for this year.

There are no major Economic news from Australia to be released today but several data are scheduled to published from U.S. such as Core PCE Price Index, Personal spending, Personal Income, Pending Home Sales and Loan Officer survey later in the afternoon GMT time.

The main trend is heading upward in the daily chart but there is not enough momentum as the price reversed as it reached the .7608 level on Tuesday last week. However if the trade continues above the said level, it is possible for the upsurge to continue and establish .7511 as a new trading floor The trading range swayed between .7777 and .7159 levels with retracement levels from .7541 to .7468 area. The market extend across this range giving an upside tone with the retracement levels as support levels.

The near-term range lies within the .7159 to .7608 level. If the market reached the .7383 to .7330 area proceeding its reversal trend, this becomes the next floor target as it closes with a bearish tone.

The trading closed at 0.7546 on Friday and the next direction of the pair will depend on traders activity with Fibonacci level at 0.7541. If the current trend prolonged, this implies the strong stance of buyers leading the market. The followed uptrend with the possible resistance levels at .7568, .7588 with the last level to reach at .7598 before the highest level at .7608 mark. If it skips the .7608 level, the uptrend may continue towards the next target at .7639 level giving a bullish tone to the market.

However, if the price maintained lower than the .7608 level moving across the .7528 downtrend angle, indicating sellers dominating the market. It could go much lower towards the .7468 level. This could induce the market to jump towards the .7399 ad .7384 as the next support range. Overall, the price trend for this pair will depend on the market reaction to .7541 level to determine whether buyer or sellers will dominate the price for this day.

USD/CAD Technical Analysis: January 30, 2017
The USD/CAD pair declined in the week while testing the 1.30 level or lower for support. The former uptrend line continues to move offering strong resistance. Its support level is found at 1.3018 followed by a rebound towards the 1.3053 mark. This rebound may be a signal to consolidate a downtrend at 1.3387 level and could further go down towards the 1.2900level. If a break above the 1.3230 Resistance level, this finishes the decline of the pair.
For now, it is more favorable to trade in short-term instead of long-term trades. Traders should monitor the oil market as it has a big impact to the Canadian dollar which is not performing well while the traders are still uncertain of what to do next.

EUR/USD Fundamental Analysis: January 30, 2017

The Euro has recovered this morning trading amid the high risk and uncertainty in the market that has also affected the U.S. dollars. It seems that the current global condition reverses where that safe haven assets such as dollar and gold as seen as a go-to investment because of its stability but this is not happening. The greenback gives off high risk with market concerns on the changes in U.S. policies while yen and gold gain with risk off sentiment of the traders.

Change in U.S. administration following Trump’s inauguration and its team looks into update of campaign promises such as modification of Obamacare, immigration rules in wholesalers and muslim ban and other migrants making it difficult for them to come back in the country attracted public controversy. The stand of the U.S. who is aiming for a renegotiation of NAFTA and other trade agreements, is significant in the global trading swaying the balance in trades where some leaders had dissatisfaction where this is heading. This has increased the uncertainty on what will happen in the next 4 years altering U.S. policies and influencing market sentiment that drags the dollar down while the pair gains from it.

With the recent Chinese New Year holiday, there is no new major economic news expected to be released today. Hence, the market is in consolidation while later on, market should expect high volatility with the release of economic data in the middle to later of the week. The U.S. dollar may continue to weaken for some time while the EUR/USD pair would remain in consolidation state with a tone of bullishness.

January 30, 2017

BB to keep rates on hold, Kabir Said

The central bank of Bangladesh maintained its key policy rates on January 29, Sunday according to Governor Fazle Kabir, noting the comprehensive Macro stability coupled with a stable inflation forecast. As mentioned by the bank’s governor, the predicted average inflation was estimated from 5.3 to 5.6 percent in June which is lower than the 5.8 percent goal for the fiscal year of 2016-17.

Kabir also added that the increasing value of the global commodities for this year would probably weigh an upward pressure on the domestic prices, he said in a press conference, marking the quantitative measure of the monetary policy from the month of January to June. Moreover, the Bangladesh Bank (BB) have trimmed its interest rates with a half percentage point in January 2016.

The average rate of inflation reached 5.92 percent during the fiscal year 2015-2016 which is the lowest recorded in 12 years. It is because of the steep decline in the commodity prices and the output in agriculture from South Asian countries, approximately 160 million individual.

January 30, 2017

USD Drops, Asia Stocks Slump after Trump’s Immigration Ban Causes Unrest


The US dollar inched lower and asian stocks declined after the market suffered repercussions brought about by President Trump’s various implementing policies, including an immigration which has sparked outrage from a number of the world’s most influential leaders as well as some tech giants. Meanwhile, bonds rose in value along with gold prices. The US dollar traded within its lowest levels in over two months and has weakened significantly against all other major currencies. Oil prices also decreased in value for the second consecutive day this week.

USD/JPY Fundamental Analysis: January 31, 2017

The Japanese yen inched higher as opposed to the US dollar as a result of a flight-to-safety trend across the market, which was triggered by investor reactions to a sudden drop in global equity markets. Meanwhile, stocks were sold off as a result of Donald Trump’s immigration ban. The USD/JPY pair closed off the previous trading session at 113.778 after decreasing by -1.10% or 1.269 points.

A lot of investors have sought the protection of the Japanese yen after protectionism concerns arose due to the immigration ban since these could possibly have a negative effect on both exports and imports and could also create substantial risks for the economy. Towards the latter part of yesterday’s session, the Japanese Household Spending data came in with a reading of 0.3%, exceeding market expectations of 0.8% and the previous reading of -1.5%. However, the unemployment rates for the country remain stagnant at 3.1%. Meanwhile, the Bank of Japan chose to maintain its current benchmark interest rates at -0.10%, a move that was generally anticipated by the majority of market players. The central bank also increased its GDP forecast to 1.4% as opposed to its past prediction of 1.0% back in October. In addition, the BoJ also stated that it is expecting an inflation surge of around 2% come the fiscal year 2018.

Interest rate differentials could have a positive effect on the USD/JPY pair since the central bank chose to maintain its interest rates while the Fed hinted at high-frequency rate hikes for 2017. In the short term, the USD/JPY could be driven by volatility coming from the equity markets. However, the dollar-yen relationship could possibly be influenced by the positive interest rate differentials.

GBP/USD Fundamental Analysis: January 31, 2017

The GBP/USD pair’s activity has been very disappointing during the past 24 hours, which could be largely due to the fact that the market is nearing the end of the month. Towards the end of every month, the UK government is required to pay its membership fees to the European Union, and this usually amounts to 1 billion euros, and this usually induces volatility in the movement of the sterling pound. These monthly dues from the UK are usually masked by the banks which process these transactions, but these show more often than not, and this contributes to the drop in the value of the GBP.

Market analysts have constantly saying that the direction of the sterling pound would most likely be influenced by the Brexit process, and this has been already seen with the increased pressure on the GBP/USD pair. This particular pressure on the pound is expected to continue until such time that the Brexit process is finally completed, and this is also the reason why the pound climbed up to trading highs near 1.2700 but eventually corrected and is now expected to hit 1.2300 points in the short term. The GBP will remain to be one of the weaker currencies, and although there might be a few intermittent reversions at the expense of the dollar weakness, these are not expected to follow through in the long term.

There are no major news releases from the UK set to be released today but the US will be releasing its consumer confidence data. Month end flows are expected to come in today as this is the last day of the month, and traders are advised to take the necessary precautions to protect themselves from the onslaught of additional volatility today.

EUR/USD Fundamental Analysis: January 31, 2017

The EUR/USD pair was subject to a lot of volatility during the past trading sessions. The currency pair initially began yesterday’s session on a positive note, but eventually dropped in value as the USD weakened across the board and negative concerns and uncertainties in the international economy increased, which then adversely affected all currencies including the EUR/USD pair. The currency pair has since then moved towards 1.0620 points before slightly recovering during the North American trading session and climbed up back to 1.0700 points.

Trump’s immigration ban has not sat well with a lot of world leaders, and this has rattled the entirety of the financial market, with a lot of market players losing confidence over the US dollar. Trump’s newly-laid out economic and foreign policies is also a cause for concern in the market, and the effects of these uncertainties are starting be felt in the markets as well. The EUR/USD could possibly continue its consolidation for today since there are expected month end flows for today. The market is also expecting to see some position adjustments for this year.

For today’s trading session, ECB governor Mario Draghi will be releasing a statement during the London session, but this is not expected to lend that much volatility into the market as Draghi very rarely gives out anything substantial with regards to the present economic status of the European Union in his speeches.

USD/CAD Technical Analysis: January 31, 2017

Many investors await for the release of GDP scheduled tomorrow. Meanwhile, the decline in oil prices shocked the commodity currencies including the Canadian dollar. Moreover, the terrorist attack on the Quebec mosque last Sunday further made a slight impact against the Loonie.

Meanwhile, the greens resumed its short-term bullish signal on Monday and it resumed to climb higher subsequent to a short period of consolidation amid Asian hours. The USDCAD strengthen during the earlier trades in Europe and advance to 1.3190. But the upside impetus stalled at 1.3158 level where the major stayed prior to the opening of NA session.

The spot is confined under the moving averages as indicated in the 4-hour chart. The 50-EMA made an upward crossover to the 100-EMA. The 50 and 200 EMA are neutral while 100-EMA en route lower. Resistance entered 1.3190 level, support plunge in at 1.3120.

The MACD increased which signaled sluggish stance for sellers. RSI lies around the neutral territory.

The 1.3120 support region paid attention by the market. A gap within this region would open an opportunity for the 1.3090 range, lowering to 1.3050.