Forward Guidance

/in /by

Dear Traders,

defining its up-trend, the Euro climbed until 1.3900 last week. Maybe shortly we will see the 1.4000 level. Consolidations can be expected  until 1.3825 and 1.3750, from where we can find new profitable long entries.

The European Central Bank and the Bank of England have pledged to hold down their interest rate to spur the economy.

ECB president Mario Draghi has pledged to keep borrowing costs “at present or lower levels for an extended period of time”, the so called “Forward Guidance”.

Also the British Pound is trading at its heights. A possible sustainable break over 1.6800 could lead the pair until the level of 1.7000, but if it is not able to break its resistance we expect a drop until 1.6640 and further 1.6500.

The new week starts quiet, do not take too much risk. Trade with a smaller position and let’s see how this week is going on.

As always we wish you many profitable trades and a nice week!

ECB Interest Rate decision & Crimea Crisis

/in /by

Dear Traders,

we hope you had a good start in March 2014. Yesterdays’ trading was formative by short trends which is due to the current Ukraine Crisis.

On Thursday market strategists will listen to the ECB rate decision, where most economists expect that the ECB won’t lower its current interest rate this week. This expectation is probably priced into lately up trends.

Furthermore there are various important news release on tap this week:

  • Wednesday – Services PMI – GBP, ADP Nonfarm Employment change & ISM Non-Manufacturing PMI –USD
  • Thursday- Interest Rate decision GBP & EUR
  • Friday – Nonfarm Payrolls and Unemployment rate USD

So, this will be an interesting first week of March.

These are the current resistances and supports of EUR/USD and GBP/USD:

EUR/USD

Resistance @ 1.3800/10

Support @ 1.3700/ 1.3655/ 1.3600

GBP/USD

Resistance @ 1.6720/60

Support @  1.6630 and 1.6490

If you wish to obtain daily entries with “stop loss” and “profit targets” feel free to subscribe to our free signals test period.

We wish you good trades and many pips!