2017-09-06
USD/CAD bearish trend is still quite intact but recently broke below the key support level of 1.2450. CAD has been quite dominating over USD after the rate hike decision was made last month whereas USD is quite weaker due to worse economic reports published recently. Today, the Bank of Canada is going to post the Rate Statement and the Overnight Rate report which is expected to be unchanged at 0.75%, Trade Balance report is expected to show less deficit at -3.2B from the previous figure of -3.6B and Labor Productivity report is expected to show a decrease to 0.9% from the previous value of 1.4%. On the USD side, today Trade Balance report is going to be published which is expected to show greater deficit at -44.6B from the previous figure of -43.6B, Final Services PMI report is expected to decrease to 56.8 from the previous figure of 56.9, and ISM Non-Manufacturing PMI is expected to increase to 55.8 from the previous figure of 53.9. To sum up, CAD is expected to gain ground with the economic reports whereas USD reports are expected to be rather weak. As of the rate decision of CAD, there are higher chances of rates being unchanged today whereas other economic reports of CAD being published today will contribute further with the gains. CAD is currently expected to gain further over USD in the coming days.
Now let us look at the technical chart. The price has recently broken below the key support level of 1.2450 which does signal further bearish pressure is going on. The impulsiveness of the bears is quite impressive in this pair whereas the trend has been non-volatile as well. As the price remains below 1.2700-1.2830 resistance area, the bearish bias is expected to continue further in this pair.
Fundamental Analysis of EUR/JPY for September 6, 2017
2017-09-06
EUR/JPY is currently residing inside the corrective and volatile structure of 128.50 to 130.60 area after a long non-volatile bullish trend in place. EUR and JPY have been mixed with the economic reports published recently which lead to further correction in the market. Today, German Factory Orders report was published with a negative value at -0.7% from the previous positive value of 0.9% which was expected to be at 0.2%, Italian Retail Sales report was published as expected at -0.2% which previously was positive at 0.6%, and Retail PMI report showed a slight decrease to 50.8 from the previous figure of 51.0. On the JPY side, today Average Cash Earning report showed negative value of -0.3% from the previous positive value of 0.4% which was expected to increase to 0.5%. To sum up, both currencies in this pair has been quite worse with the economic reports published today that is expected to lead to further correction in the coming days unless any high impact report with positive result provides any direction on either side of this pair.
Now let us look at the technical chart. The price is currently residing inside the range of 128.50-130.60 area which is expected to be corrective in nature inside this range. As of the current situation, we will be looking forward to having a break on either side of the range with a daily close showing some impulsive bullish or bearish direction to predict the upcoming move. As of the non-volatile bullish trend was in place for this pair before it came into the correction, the breakout towards the upper side is quite expected to happen. If price breaks above the 130.60 level with a daily close, then we will be looking forward to targeting 132.20 resistance level.
Technical analysis of USD/CHF for September 06, 2017
2017-09-06
Overview:
The USD/CHF pair is trading with bullish bias from the support levels of 0.9558. Currently, the price is in a bullish channel and the price is seen at the spot of 0.9558- 0.9509.
The USD/CHF pair will probably continue to move upwards from the level of 0.9558. Yesterday, the pair rose from the level of 0.9558 to a top around 0.9670.
Today, the first resistance level is seen at 0.9693 followed by 0.9725, while daily support 1 is found at 0.9558 (38.2% Fibonacci retracement).
The USD/CHF pair is still moving between the levels of 0.9550 and 0.9636.
Furthermore, if the trend is able to break out through the first resistance level at 0.9693, buy above the level of 0.9558 with the first target at 0.9693 in order to test the daily resistance 1 and further to 0.9725. Also, it might be noted that the level of 0.9725 is a good place to take profit because it will form a major resistance today.
However, if a breakout takes place at the support level of 0.9500, then this scenario may become invalidated.
Technical analysis of NZD/USD for September 06, 2017
2017-09-06
Overview:
The trend of NZD/USD pair movement was controversial as it took place in a narrow sideways channel, the market showed signs of instability. Amid the previous events, the price is still moving between the levels of 0.7170 and 0.7298. Also, the daily resistance and support are seen at the levels of 0.7170 and 0.7131 respectively. Therefore, it is recommended to be cautious while placing orders in this area. So, we need to wait until the sideways channel has completed. Yesterday, the market moved from its bottom at 0.7170 and continued to rise towards the top of 0.7262. Today, in the one-hour chart, the current rise will remain within a framework of correction. However, if the pair fails to pass through the level of 0.7170, the market will indicate a bearish opportunity below the strong resistance level of 0.7262 (the level of 0.7262 coincides with the double top too). Since there is nothing new in this market, it is not bullish yet. Sell deals are recommended below the level of 0.7262 with the first target at 0.7170. If the trend breaks the support level of 0.7170, the pair is likely to move downwards continuing the development of a bearish trend to the level 0.7131 in order to test the daily support 2.
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