Daily Market Analysis by ForexMart

AUD/USD Technical Analysis: May 22, 2017

The Australian dollar against the U.S. dollar started quite low on Monday sustained trading within the trading range on Friday reflecting uncertainty and approaching volatility. The price closed at .7454 and today’s trading will depend on market activity reacting to 50% at the same price. There are no major reports from Australia and U.S. that caused less activity in the market hoping news that would elicit volatility.

The major trend is moving on the downside as shown in the charts. This would reverse once the market breaks over the .7556 level while a move towards .7329 level signals completion of the downtrend.

The AUD/USD pair is recovering coming from lows on May 9 at .7329 region but hampered by the major retracement area. It is too early to tell that is moving higher following a rally for nine consecutive days.

The main trading range is seen between .7558 to .7329 with a retracement zone from .7442 to .7469. The major 50% level is found at .7454 as it is purchased at a fixed price. The market reaction will determine who dominates the market, either the buyer or seller trying to reach a secondary support level.

If the price moves beyond the .7454 level implying the presence of buyers which could result in a surge for short-term with a Fibonacci level at .7469. Surpassing the said level would elicit further uptrend towards the down trending angle at .7468 that will probably position as a resistance level. It could move towards .7509 then .7521 level.

On the other hand, a sustained move below the .7454 regions implies the dominance of seller. The primary target in the lower channel is at .7442 50% level and a break into this angle would push the price towards .7419 level.

The .7419 level is the major level directing the pair to move higher comes. However, if the pair failed to maintain the level, it would fall towards the .7384 Fibonacci level. Traders should monitor the .7454 region to monitor the price action and determine who leads the market.

May 22, 2017

New Economic Development Project Proposed by Owasso City

During the council held in early May, the staffs of Owasso City made a project proposal for a new Economic Development Strategic Planning intended for the community itself.

The proposal highlighted an agreement with the TadZo Consulting, known to be a consulting firm specializes in the economic development and site selection, they are part of the project in order to administer strategic services towards the city.

This is because the town has seen growing rapidly over the past few years and presumed further responsibility in developing its own economy. They gave importance on establishing defined objectives as well as devising policies effective for achieving their economic goals.

With the involvement of TadZo, it ensures that the town is able to execute such task through engaging, educating and empowering everyone concerned in the project through a definite method.

The economic developer would offer further assistance for the Owasso to catch the eye of its target audience through conducting comprehensive researches in identifying new community offerings.

The range of work is divided into three phases which include the current situation, strategic priorities, and strategic plan. This is done in order to have an efficient task in customizing the challenges, necessities, and opportunities for

The plan will undergo for a vote scheduled on Wednesday, July 5. In case the economic project will be approved, the cost will not exceed at $60,000 and would take six to eight working months which will start in July.

May 22, 2017

Japan Exports Rallied for 5 Months

Exports from Japan notably increased for five consecutive months indicating a strong offshore demand and increased shipments of semiconductors and steels that boost economic growth. In April, exports climbed up to 7.5 percent compared with the previous year and lower than the median estimate of 7.8 percent yearly growth.

On the other hand, its trade surplus with the U.S. also decreased by 4.2 percent from a year ago while the exports jumped by 2.6 percent and continuously grows in the past three months because of high volume of car and auto parts shipments. An economist predicts that this upsurge will continue including domestic imports but the protectionist trade policies of Donald Trump raises concerns with Japan being an export-reliant country.

GBP/USD Technical Analysis: May 23, 2017

The GBPUSD go through a very volatile session during Monday trades, seeing the market to rise and fall due to the large-scale headlines that continually have divergent opinions.

The issue regarding the withdrawal of Britain from the European Union persist and dominates throughout the market, so we should further expect some volatility.

The region 1.3050 above offers some resistance in the near-term, however, there is a possibility that the Cable will be pushed in the longer term. Pullbacks should still be expected but should provide some value. While the level 1.2975 is becoming the support as it keeps on grinding upwards. A cut through on top of the 1.3050 mark signals for the continuous uptrend in the market which also shows that the momentum is already starting. this could be a complicated action however the buyers are currently in the driver’s seat. The choppiness will remain alongside with a bit of an upward bias which could offer an advantage.

Through employing the short-term pullbacks intended for buying opportunities is suitable to gain an edge over the bullish pressure and this could also be the way to reaching the top level of the consolidation area that lies at 1.3450.

Apparently, the market is too delicate to deal with as of the moment and yet, an ascending triangle shows up which mean that there a significant amount of bullish pressure starts to develop.

Recommendations say that the market should refer towards the area 1.32 or much more move near the longer-term charts. Additionally, selling is not a thought by this point in time.

EUR/USD Fundamental Analysis: May 23, 2017
The EUR/USD pair has maintained its current price action during the previous trading session as the USD remained on the backfoot yesterday. The EUR/USD pair encountered some minor correction during the course of yesterday’s session and this caused the pair to retreat towards 1.1200 points for a couple of hours, although it eventually became clear that both the market traders and investors were preparing themselves instead for a bullish action in the pair instead of any major correction in the pair.
The pair’s movement towards 1.1200 points remained for a few hours into the trading session yesterday, but then the pair eventually moved out of this particular range and had begun to surpass 1.1200 points in time with the opening of the European session. Germany’s Merkel also made a speech during the session wherein she expressed her concern regarding the weakness of the euro, which has caused a drop in the value of Germany-based goods. However, this was not a surprising fact for investors as this has been the country’s stance for so long with regards to their monetary policy. But investor sentiment is not what the market is focusing on these days since the current market trend is now what the general market sentiment is. This was then seen as a trigger for a surge in the value of the euro, and such, this was followed by a euro buying which enabled the EUR/USD pair to advance towards 1.1250 and even managed to reach 1.1263 points, where it was met with a large-scale selloff. The currency pair remains trading within this particular range, with 1.1300 as the pair’s next medium-term target.
For today’s session, the market is expecting the release of the Flash PMI data as well as the German IFO Business Climate data from the German and French economy, while a couple of Fed officials will be involved in some speaking engagements, wherein they are expected to say that the rate hike schedule next month is off the charts for now. The EUR/USD pair is then expected to trade with a bullish undertone and could possibly test the 1.1300 trading range.

GBP/USD Fundamental Analysis: May 23, 2017

The GBP/USD pair has still refused to join the tumult caused by other major currencies rallying against the greenback. In addition, the market was wrecked by news of a bombing at Manchester, which killed a total of 19 people and has injured over 50 people in its wake, in what has been confirmed as an all-out terrorist attack. Although the reaction of the sterling pound to this particular news has been somewhat muted, it has certainly caused the GBP/USD pair to drop in value, wherein it is not expected to become bullish since the Manchester bombings has made headlines today.

The GBP/USD pair started off yesterday’s session a weak note following reports that the UK government might cancel the Brexit negotiations if the EU officials would implement a lot of harsh conditions. These developments are all expected to maintain the downward pressure on the cable pair as the UK economy enters a very critical period next month due to the oncoming snap elections and the Brexit talks immediately after the elections. However, the cable pair did manage to make a slight recovery during the European session, with the pair reverting to 1.3000 and even managed to test 1.3030 points before being met with a lot of selling and correcting towards 1.3000 points following the news of the bombings. The GBP/USD pair is then expected to remain under downward pressure for the duration of today’s sessions.

For today, there are no major releases coming from the UK economy, while a couple of Fed officials will be making speaking engagements later in the day. Since the recent bombings at Manchester would most likely dominate the international headlines, the GBP/USD pair is expected to remain safely consolidating on both sides of 1.3000 points with bearish undertones.

USD/CAD Fundamental Analysis: May 23, 2017

The USD/CAD pair has been exhibiting a very disappointing price action ever since it was able to test its range highs at 1.3800 points during the start of this month. The currency pair has been suffering from the repercussions brought about by the greenback’s weakness and the strength of the loonie which was mostly due to an oil price surge. This oil price increase was able to cover up the actual occurrences within the Canadian economy and has provided enough leverage for the loonie to advance, and this is why the USD/CAD pair has been consistently dropping value during the last two weeks.

As of the moment, the currency pair is now within a very critical region of 1.3500 points, where it continues to look very weak. The weakness of the greenback has been the dominant market trend as of the moment, with the dollar getting adversely affected by Trump’s political woes, which in turn has affected the US economy as well as its monetary policy. The market had initially priced in a rate hike this coming June, but with the recent slew of dismal events, it looks like the market’s players might have to put off this interest rate hike at least for now. In addition, the rising oil prices has helped the loonie to retain its positive image amidst Canadian banking concerns, wherein the majority of Canadian banks have been given the thumbs-down by ratings agencies. The loonie strength has also helped to offset the concerns surrounding the HCG and the housing sector.

For today’s session, there are no major news releases coming from both the US and the Canadian economy, although some Fed officials will be making statements today with regards to the US monetary policy. All these are expected to add downward pressure on the USD/CAD pair and cause the pair to test its support levels.

AUD/USD Technical Analysis: May 23, 2017

The Australian dollar had a very active session on Monday and broke in the lower channel. It continued the downtrend and fill the gap and reversed after reaching the 0.7425 region and rallied uphill. As the sellers come back, there is a few pullback until enough volume and momentum are seen to break higher than the said level.

The currency is very sensitive to the gold market and it follows its movement over the long-term. However, pullbacks may offer some value as it reaches near the 0.7450 level which has been resistive for some time before. If the market breaks higher than the 0.75 handle, the trend would climb higher towards the 0.80 level although this may take some time.

On the other hand, if the gold market declines, then the next target region would be at 0.74 and below. Breaking this level could go even lower towards the 0.7350. As mentioned, the currency is highly sensitive to the market appetite for risks and traders should look out for it as other assets gains globally and Aussie is anticipated to follow.

There will be high volatility in the market while some traders avoid the U.S. dollar for short-term which would put bullish pressure in the market. Also, traders should anticipate choppiness in the market. A hammer pattern is seen in the weekly charts and is could position at the bottom in the charts.

EUR/USD Technical Analysis: May 24, 2017

The EURUSD attempted to move through the higher region on Tuesday, however, failed to maintain its gain upon reaching the level 1.1268. When the profit taking started the pair was pushed beneath the 1.12 handle.

Meanwhile, the stronger report of GDP and sentiment data buoyed the EUR/USD and the yields turned up in Europe as relating to its American counterparts. Moreover, the PMI readings kept unchanged in the month of May, as the German nation lead the charge that reflects towards a strong growth.

The major pair touched the higher high as it eclipses the prior day high using 5 pips. The resistance is found at 1.1299 level close to November 8 highs and in case the level will be broken, it would lead to testing 1.1365 region near its August highs in 2016.

The support entered the mark 1.1603 around the 10-day moving average. Momentum is slow-moving, seeing the moving average convergence divergence (MACD) print in the black together with a descending trajectory that drives towards the consolidation.

GBP/USD Technical Analysis: May 24, 2017

The GBPUSD appeared to be weak amid Tuesday’s session, however, met some buying pressure below the area 1.30 which helped for the pair to move ahead. The 1.3050 level have a significant amount of resistance and a break on top if it will continue the longer-term trend.

The British currency looks like having an attempt to develop a momentum in the upside but the risk appeared to remain above. Plenty of moving pieces exists around it which could probably allow the headlines to persist moving in the market. With this, it is best to pay no attention towards these headlines and just continue to trade in a market with a technical outlook because this could help you to remove few of the noise. While smaller positions appeared to be necessary unless a “buy on the dips” were offered under this kind of circumstances.

A break over the 1.3050 significant handle will enable the market to trail towards the 1.3450 region considered as a major resistance barrier which can be found in the longer-term chart.

The choppiness should remain as the market will behold the news to be released and it is important to employ stops most of the time, it is also vital to maintain your position size lower.

As of this writing, the sellers are starting to push back. The Cable have witnessed to be a highly volatile pair which might hurt the market.

It is recommended to maintain a small position size and be active since a tough situation may occur every now and then. Selling is ruled out.

NZD/USD Technical Analysis: May 24, 2017

The national currency of New Zealand attempted to rally on Tuesday, however, it rolled over. As of this writing, it starts to move near the 0.70 region. In case that the area will be dropped, the market will tend to had a significant roll over while the shooting star begins to form on the daily chart. Having said that, the breakdown beneath the level 0.6980 would likely breakdown the mark 0.6980 below. The NZD will roll over and look for the 0.6925 eventually.

On the other hand, a break on top of the high during the session will indicate a bullish signal as expected, as the market tend to move near 0.7250 area. Alternatively, the market is having a volatile environment as it bears a shaky ride.

The New Zealand dollar is highly sensitive to the commodities and you should be cautious to the general market sentiment because it points further directions.

As the market prepares to conduct a determined plan and you should place a trade based on the breakout on top of the daily range or a breakdown underneath the 0.6980 mark.

Moreover, the Aussie were seen to move on the same path just like the other two pairs which favors the idea of trading with the breakout. And this suggests that it is much easier to drop lower because going up would mean dealing with lots of confusing underlying trends.

AUD/USD Technical Analysis: May 24, 2017

The Australian currency against the U.S. dollar broke above the 0.75 level but was also reversed soon after. If the price breaks lower than the 0.7450 region, the price would further decline. This is also similar for the long-term trades.

The gold market directly influences the pair including the risk appetite for these trades. However, it seems that the gold market is not performing well. The raw material trades from Australia supplied within Asia is also falling since there is low demand for copper and iron which are the fundamental trades of the country.

In a long-term trend, it seems that the market sustains the current trading condition. Its downtrend could attain up to 0.70 level for long-term. If the price breaks higher than the 0.7525 region, it could reach its way about the 0.7750 level for a longer term.

However, reaching the said level won’t be easy. Although, the market usually change position in a bullish pattern and makes it more complicated when the market worries. This is what anticipated to happen when the price soars that makes pullbacks not surprising anymore. The uptrend line is noticeable on the hourly chart and a break lower than the 0.7450 level would bring the price down with an increase in bearish pressure.

USD/JPY Technical Analysis: May 24, 2017

The U.S. dollar against the Japanese yen had a calm trading During the Tuesday session. The price rallied higher because massive support found at 111 level. The market tries to push it higher towards the 111.50 region and this could even go higher reaching towards the 112.50 level above which has been a significant psychological region previously.

With the fluctuation in the stock market, traders should monitor the indices especially the S&P 500 because of its high sensitivity to risk appetite. This would hint the next move in the trading market as there is a high correlation between the two. The Japanese yen being a safe haven asset would bring about greater risk appetite when it proceeded with a sell-off. This is a positive indication since a massive bullish candle was formed during the day.

If the price breaks higher than the 112.50 level, the current long-term uptrend will be sustained. This is a strong indicator but the market could attempt more than once to be successful as the market would most likely climb higher.

However, when the price breaks lower than the 112.50 level instead, the massive support will remain as of how it was in the past. The stock market is gaining momentum which could also push the price higher for long-term with a strong correlation with the stocks. Hence, traders should monitor changes not only in forex market but also in the stock market.

EUR/USD Technical Analysis: May 25, 2017

The EURUSD bounced off from its sessions lows after the release of a weaker than expected data in U.S housing last Wednesday.

The confidence index for Germany continued to increase while the European Central Bank was on the tape, expressing diverging statements. This confuses many traders thinking about how will the ECB cope with their remarks on the back of the monetary policy meeting scheduled on June.

The pair starts to form a bull flag pattern that served as a pause to stimulate. While price creates a Doji day that came up during opening and closing of the same level, as it reflects a market indecision.

The support came in at 1.1094 region close to the 10-day moving average. Resistance is found in the area 1.1299 around the highs of U.S. election day on November 8.

A break within this region will test the 1.1365 mark near the highs in August 2016. The momentum became neutral because the moving average convergence divergence (MACD) printed in the black, however, the histogram declined which slowed down the positive impetus and further indicates a consolidation

GBP/USD Technical Analysis: May 25, 2017

The sterling pound had an initial attempt to conduct a rally amid Wednesday trades, as it tests the level above 1.30 region. This is an important area and a break on top of it would indicate a bullish signal.

As of this writing, the ascending line was maintained and buyers would likely enter the market as soon as possible. A breakdown underneath the uptrend line will trigger the market to test 1.29 handle, which appeared to be supportive. Further breakdown around the handle, will indicate a negative sign in the near-term, but it looks like that more support can be found below.

An attempt for a reversal is deliberated, however, the Cable was highly volatile as expected, considering the headlines issued from Brussels and London that could move the market unexpectedly.

Having said that, the conditions are going to demonstrate choppiness and a smaller position size should be mainly considered. Nevertheless, a rally within this direction will suggest a long-term trend towards the upside, requiring the position size to be not so big. Otherwise, an investment that could reach the 1.3450 range above.

Furthermore, a gap through 1.2750 below will cause the market to slide and return to a bearish long-term move. In case this happens, the fall is assumed to be in an abrupt manner.

The bullish bias will remain along with the noise currently in the market.

USD/CAD Technical Analysis: May 25, 2017

The greenbacks rebounded around amid Wednesday’s trades, staying on top of the 1.35 region very often. However, the Bank of Canada, later on, stated that the recent plight in the inflation was merely an anomaly by which people should not be privy to. With this, the favor of the market is leaned towards the Canadian dollar as the oil industry had received a fair support.

A break under the level 1.36 will extend the strength of the selling pressure because of the oil prices. The oil market appeared to be volatile on the back of the OPEC announcement expected to be released later. When the announcement regarding the production cuts appeared to be longer and deeper than of the anticipated result, it will surge the oil price up resulting the pair to move lower.

Selling rallies will continue considering that the market formed renewed lows in the day, however, the oil sector presumably will ascend. When the organization did not meet the expectations of bullish oil traders, the market will reverse suddenly. This will further make the USDCAD an interesting pair for the next sessions while high volume will be seen jumping in and out from the oil pits.

Trading recommendations say that the 1.33 handle and 1.30 level below is supportive. In the longer-term, the oil will be facing major issues and will run to the upside of the market in the short-term. This will cause for the North American shale producers to came in.

USD/CAD Fundamental Analysis: May 25, 2017

The USD/CAD pair crashed past 1.3500 points during yesterday’s session, signalling a complete turnaround of the pair’s price action. The loonie has also somewhat managed to test the 1.3500 range, although its progress was remarkably slow and has cast doubt on the pair’s ability to reach its medium-term target of 1.4000 points.

The pair’s targets were mostly based on the recent drop in oil prices, as well as the current problems and uncertainties surrounding the Canadian economy, and a possible rate cut in Canada anytime soon. But the Canadian government seems to have already reined in its economic concerns, and this can be seen in the sound improvement of Canadian economic data during the past weeks. The USD/CAD pair has also moved down from 1.3800 points to 1.3500 points as the Canadian dollar received significant support from a surge in oil prices during the previous weeks. The Bank of Canada has decided yesterday to maintain its current rates which painted a rosy picture of the Canadian economy and enabled the USD/CAD pair to correct towards 1.3500 points before finally deciding to settle at 1.3400 points.

For today’s trading session, the market will be monitoring the OPEC meetings scheduled within the day which is expected to affect the course of action of the USD/CAD pair. However, since the pair has now surpassed 1.3500 points, this particular range could possibly serve as the pair’s resistance level against any other attempts to reach its range highs.

USD/JPY Technical Analysis: May 25, 2017

The U.S. dollar against the Japanese yen had a calm trading session on Wednesday. The 112 level is being resistive up to 112.50 above. It may be best to wait until the price breaks in the upper region but most likely it will decline in the short-term. There is a support close to the 111.50 level and anticipate volatility in the market. There is a lot of buyers down below but with chances to break out. It will be more advantageous to trade this pair in short-term as it open more opportunities in either direction.

Short-term trades may drop from the current psychological level but there is a massive support down below that makes it appealing for long-term traders. The market will be observant with the reports coming out with all the political problems globally.

Since the stock market is moving upwards, the pair could go higher with the “risk on” sentiment in the market and the Japanese yen sell-off is a positive indicator,

Look for smaller trade positions as these open opportunities but will have chances to lose some money. In the long-term, the pair will continue to move upward but be ready for volatility. Also, it is important to consider the time frame in positioning orders.

NZD/USD Technical Analysis: May 25, 2017

The New Zealand dollar had a rough session on Wednesday. It dropped in the beginning to 0.6990 level but recovered as it bounced back to 0.7040 region before falling again. The volatility will most likely continue since there are a lot of happenings in the commodity market since the kiwi is relative to the commodities. Hence, is the commodity prices roll over, expectedly, the New Zealand will also be sold and bought one after the other.

It is best to wait until the price breaks in the lower channel, as shown in the 72-hour Exponential Average, before selling this pair. The market is anticipated to fluctuate with many issues side-by-side concerning geopolitical problems fueled by global demand.

Traders would have a difficult time in trading this pair for long-term. If the price breaks lower than the 72-hour Moving Average, it could further go down towards the 0.69 handle. The latest peak was lower than the previous one which would bring a lot of noise in the market.

Overall, if the price breaks higher than the fresh new high, buyers could proceed with this pair although there will bounce from time to time. There is a downtrend bias in the market especially when the 72-hour Moving Average becomes the basis to participate in this market on the low side. Yet, it would still be wiser to wait on the sidelines.

May 25, 2017

China’s Debt-rating Downgraded by Moody’s to A1 from Aa3

The credit rating of China was downgraded by Moody’s Investors Service on Wednesday, the previous Aa3 (Double A-3) were down to A1 which means that the Chinese economy is going to grind lower for the next years as the country showed slow growth and its debt continuously increase. The downgrade is done due to the financial pressure that the government faces after years of credit-driven stimulus.

Craig Erlam, a Senior Market Analyst of Oanda, said in an interview, “Because talk of Chinese debt and concerns about the size of Chinese debt has been going on for the last few years. They seem to be very reliant on these high levels of growth, which has been slowing.” He further added that the credit downgrade does not surprise him at all.

The second largest economy in the world gained 6.7 percent last year and 6.9 in 2015, this pace is the slowest based on the records since 1990 by which Erlam believes that the following years appears to be challenging.

The bond credit rating company has expectations that the direct debt burden of China’s government will climb higher reaching 40 percent of 2018’s Gross Domestic Product which is close to the 45 percent as the decade ends. However, it remains lower to the 60 percent for the European Union.

The Finance Ministry of the republic claims that the downgrade is based on an improper approach that overestimated the risks on the increasing debt.

May 25, 2017

NZ’s Budget Surplus Apportioned to Infrastructures

New Zealand anticipates exceeding the budget excess prediction for 2017. The former projected amount to NZ$473 million surpluses in December and significantly increased to NZ$1.62 billion for the first six months. These figures are crucial yet the government has cope with the cost of a huge new capital investment that the authorities consigned to.

These higher-than-expected results were supported by potent corporate levies and pending rehabilitation following the November earthquake. The government targets to trim the net credit budget up to 10 to 15 percent the forecasted 23.2 percent for the first half of the year.

The country also intends to invest the excess money in infrastructure to further enhance the progressing economy according to the Finance Minister Steven Joyce. The budget amounts to NZ$11 billion allocated for infrastructures including road, train railways, prison and housing in the succeeding four years. Part of this allocation as much as NZ$6.5 billion aims to raise family incomes through modification of tax threshold and grants from the government.

EUR/USD Technical Analysis: May 26, 2017

The EURUSD trade in the sideways trying to proceed near the resistance region at 1.1265 mark, however, failed to take its position and plunged amid North American trading hours.

The jobless claims showed tight data during its Thursday’s release and were offset through a dovish tone indicated from the minutes of FOMC meeting issued on Wednesday by the Fed.

The predictions failed to some extent which triggered the Fed to make its final decision on Friday while Fed funds continued to have a strong expectation that the bank will take action.

The pair keeps forming a bull flag pattern which acts a pause to refresh. The price consolidated under the resistance level at 1.1299 near its November 8 highs.

The support approached 1.1132 area close to the 10-day moving average. The momentum appeared to be neutral while the MACD histogram moved downwards indicating a down sloping positive momentum. The RSI further trailed lower from the overbought territory as it prints 67 reading. This is the upper end of the neutral range which suggests for a consolidation.

GBP/USD Technical Analysis: May 26, 2017

The British currency ride out a volatile session amid Thursday trades, reaching the top of the 1.30 region in the day and rolled downwards substantially. Further support can be found in the uptrend line which reflects for another round of rally.

The market could likely offer buying opportunities for the GBP/USD, however, the actual signal intended for the long-term trading suggests a move over the mark 1.3050. This implies that the trend will continue until the 1.3450 area that would be the top of the former consolidation region towards the weekly charts in the long-term.

Buying the dips could possibly remain to exist along the way while the trading position shall maintain as small as possible. Since the market will continue to be highly volatile due to remarks from the UK and EU people privy to the British exit.

As things go because of volatility, dealing with the market will going to be delicate and it is important to sustain a small position. This way could be the best idea to go up against any types of risks we may face.

It is recommended to cut in half anything you feel you are comfortable with, so you can employ twice the stop loss. This could help you to stay in a market where uncertainties are extraordinary, however, it appears that buyers in the longer-term will extend its involvement with the Cable as the sterling became oversold at some point.

As the volatility continues, we should initiate to build up higher highs once more including a long position as well. Selling still not an option as we deemed that the absolute floor can be found at 1.2750.

AUD/USD Technical Analysis: May 26, 2017

The Australian currency endured an extreme volatility amid session on Thursdays, making a gapped through the top of 0.75 handle and fell lower. In the past few days appeared to interesting due to the weakening of the ascending momentum. With this, the risk of the decline is within reach and in case that the gold markets are able to keep the support around $1250 level will accelerate the downtrend.

The market currently following an uptrend line which positioned under the actual pricing. The market broke underneath the ascending line which could be one of the reasons to extend the decline. When this happens, the level below 0.74 is expected to set off a positive target for many traders.

Moreover, the commodity market should be taken into consideration when it comes to Aussie, this includes the copper and gold. The previous volatility of the AUD makes it difficult to hover within this position, it requires a break on top of the current highs or a significant breakdown in order to set actual money to work.

The choppiness is also extended since traders dominate the overall place with regards to the projections on the interest rate in the United States while Asian appeal for base metals from Australia.

A breakdown underneath the 0.7440 range will confirm for a roll over which signaled for a lower pricing, nevertheless, the noise remains that causes the market to be a tough one to engage with.

USD/CAD Technical Analysis: May 26, 2017

The U.S. dollar against the Canadian dollar declined in the beginning of Thursday trading session. The OPEC announcement has been released saying the production cute has been extended for another nine months. Although this is already expected, the downtrend occurs because of the possibility for a sell-off in the oil market as reflected in the hourly chart.

A break higher than the 1.35 region would induce this pair to move higher reaching up to 1.36 handle. Yet, if an exhaustive candle is formed, the market would proceed to a sell-off. The next few sessions are relevant to determine what happens in the future o f this pair.

The OPEC was not as aggressive as expected but the production cut decision is in line with the market’s expectation. Long-term traders would see a buying opportunity to the current condition of the oil market. However, it is safer to wait for a longer rally for the day before doing so, Overall, the market is moving uptrend for long-term which has had a rough trading last week.

It may be best to wait on the sidelines for the next 1 to days before trading this pair. The Moving Averages were not doing well but there is a chance for loonies to soften in the long-term. The 1.36 level is a significant psychological level for long-term to put on hold long-term orders and traders should wait until the current trend has been settled before placing orders.