Fasten your seatbelt for another volatile week

Dear Traders,

The recent trading days have been very profitable for traders due to high volatility amid concern over China and global uncertainty. Given this week’s major risk events, volatility is likely to persist, providing traders new chances for some profitable moves.

While the divergence in monetary policy between the European Central Bank and the Federal Reserve should determine the market’s price action, the focus will be on the U.S. Non-Farm Payrolls report on Friday. The monthly job report could be a key factor for the Fed’s decision to raise rates in September. If there is a solid job growth with payrolls exceeding 200k and average hourly earnings moving up, the Fed could hike rates on their next FOMC meeting despite global turmoil. Nonetheless, investors have reduced the probability of a Fed move next month.

An important indicator before payrolls are due for release will be the ISM Manufacturing index, scheduled for release on Tuesday.

The European Central Bank will announce its monetary policy decision on Thursday. Moreover, ECB president Mario Draghi will present the quarterly economic forecasts at the press conference. Market participants are looking for further easing to be announced before year-end.

It should be an interesting week for traders and regardless of which way the financial markets move, we will try to gain a nice profit in either direction.

The week starts off with important data releases such as Eurozone Consumer Prices at 9:00 GMT.

EUR/USD

We see the euro currently trading between 1.13 and 1.12. If the currency pair is able to break significantly above 1.13, chances are that it heads for a test of 1.14. Below 1.12 we favor a bearish stance but note that the support line could still act as a small hurdle for euro bears.

Chart_EUR_USD_Hourly_snapshot31.8.15

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We wish you good trades and many pips!

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A profitable week is coming to an end

Dear Traders,

The U.S. dollar extended its gains after data showed the U.S.economy grew more than forecast in the second quarter. The gross domestic product grew at a 3.7 percent rate, exceeding all expectations.

Short-traders have been very profitable for a third consecutive day and should now ensure that the weekly profit is not exposed to any risk. Therefore, you should consider doing either a trading break or trade with very small positions today.

The pound sterling dipped below 1.54 but managed to hold its ground and remained above the 1.54-mark towards the end of the day. U.K. Gross Domestic Product is scheduled for release at 8:30 GMT, a report which could trigger a major reaction in the GBP/USD if data is not in line with expectations.

Furthermore, we will keep an eye on German Consumer Prices, due for release at 12:00 GMT. From the USA, there will be second-tier data such as PCE numbers and Michigan Confidence, scheduled for release at 12:30 and 14:00 GMT.

It has been a profitable week, and that’s a good reason to lean back, relax and enjoy the weekend.

Daily Forex signals:

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We wish you good trades and many pips!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2015 Maimar-FX.

www.maimar.co

 

 

Time for a short breather today?

Dear Traders,

After the panic moves from Monday, the market corrected sharply yesterday. The euro experienced a correction, dipping slightly below 1.14 from where it recovered all of its losses towards the end of the day. The British pound rose above 1.58, but failed to hold this level and dropped sharply towards 1.5680. We see the cable still trading within an upward channel, which ranges from 1.58 until 1.5670/65. Above or below these levels, we expect fresh momentum to accelerate.

What is important for today?

The most important piece of economic data will be U.S.Durable Goods Orders, scheduled for release at 12:30 GMT. Economists expect a decline in July, which could put further pressure on the USD. Given the recent market swings, we might see a consolidation today – let’s be surprised.

Daily Forex signals:

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We wish you good trades and many pips!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2015 Maimar-FX.

www.maimar.co

 

 

Euro seems to be unstoppable

Dear Traders,

The euro extended its gains for the second consecutive day and climbed above 1.1215 yesterday. During the Asian session the demand for euros seemed to be “unstoppable” and the common currency advanced significantly towards 1.13. Once the currency pair breaks above 1.13, it may head towards 1.14 and further 1.1450-67, which acts as a current key resistance. However, pullbacks within an intact upward trend could occur until 1.1215 and 1.1190.

In the meantime, the market’s reaction to Greek headlines concerning the resignation of Greek Prime Minister Alexis Tsipras was muted. Tsipras called snap elections which could be held as soon as September 20. Since he has lost his majority in the Greek parliament , the election for the new Greek Parliament could strengthen his power and form a more manageable coalition government.

The pound sterling failed to set off in any specific direction and traded shy off the 1.57-border. The level around 1.5715 remains an important resistance zone for the time being whereas an upside break could release fresh bullish momentum towards 1.5770 and 1.58. 

Today, traders should keep an eye on the German and Eurozone PMI reports scheduled for release at 7:30 and 8:00 GMT. Furthermore, U.K.Public Finances (8:30 GMT) and U.S. Markit Manufacturing PMI (13:45 GMT) could be interesting reports to watch.

We wish you good trades and a beautiful weekend!

Daily Forex signals:

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We wish you good trades and many pips!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2015 Maimar-FX.

www.maimar.co

 

 

Market is pricing in a Fed Hike Delay

Dear Traders,

The FOMC Meeting Minutes failed to impress yesterday. While minutes were three weeks old, not taking into account China’s recent devaluation of the Yuan, there was no clear signal for a September liftoff. Rather, FOMC members were divided on the right time of a rate hike. With only one member voting for a September liftoff, market participants reduced the probability for such a step next month, sending the U.S. Dollar to lower levels as a result.

Within a quiet trading environment and with most market participants still on holiday, traders did not get any chance of huge profits. We will have to wait until September in order to trade larger market reactions.

While the euro has appreciated in value, the pound sterling bounced back from its 1.57-resistance.

Overview about current resistance and support-zones:

  Resistances Supports
EUR/USD 1.1155

1.1185

1.1210

1.11

1.1050

1.1015

 

  Resistances Supports
GBP/USD 1.57

1.5750/75

1.58

1.5645

1.5575/55

1.5470

Today, there is some interesting economic data from U.K. and USA due for release, which could impact on the currencies:

8:30 UK Retail Sales

12:30 USA Continuing & Initial Jobless Claims

14:00 USA Existing Home Sales

14:00 USA Philly Fed Index  

Daily Forex signals:

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We wish you good trades and many pips!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2015 Maimar-FX.

www.maimar.co

 

 

FOMC Meeting Minutes

Dear Traders,

The pound sterling experienced a sharp rise against the greenback after U.K. inflation unexpectedly accelerated in July, indicating that the Bank of England could maintain a more hawkish bias towards the end of the year. Unfortunately our long-entry was skipped due to a price gap at the time when CPI data was released. This can happen sometimes in trading due to high volatility and we can only accept it.

The euro, however, failed to show any major movement yesterday. Investors remained risk-averse ahead of the Federal Reserve minutes today. Market participants are looking for an indication for a rate hike in September.

Despite concern over China’s growth outlook, which could weaken the case for an interest-rate rise this year, forecasts show that most investors still anticipate a liftoff as early as next month. We are looking forward to seeing what the minutes today will show and how the market will react.

FOMC Minutes are due for release at 18:00 GMT. Before that highly anticipated release, traders should watch U.S. Consumer Prices, scheduled for release at 12:30 GMT. This could be a high volatile trading day and we wish everyone many green pips.

EUR/USD

SHS-pattern: Chances are that we will see increasing bearish momentum with a downside break of 1.1010. Lower targets could be at 1.0970, 1.0930 and further 1.0850. However, above 1.11 the U.S. dollar may lose strength, pushing the euro to higher levels such as 1.1145 and 1.1185.

Chart_EUR_USD_4Hours_snapshot19.8.15

 

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We wish you good trades and many pips!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2015 Maimar-FX.

www.maimar.co

 

 

U.K. Inflation Data

Dear Traders,

While the U.S. dollar traded slightly higher against most of its major peers, fluctuations have been unsteady – particularly for EUR/USD traders it has been a tough day, characterized by loss-making fake-outs rather than profitable break-outs.

The British Pound dropped below 1.56 after peaking at higher levels within its current resistance zone. U.K. Consumer Prices are scheduled for release today at 8:30 GMT. Economists forecast that consumer prices stagnated in July for a second month. The Inflation Data is of major importance and we expect high volatility.

Furthermore, U.S. Building Permits and Housing starts are scheduled for release at 12:30 GMT today.

We wish you a profitable trading day.

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We wish you good trades and many pips!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2015 Maimar-FX.

www.maimar.co

 

 

German & Eurozone GDP reports

Dear Traders,

Not much has changed on the technical outlook. The euro experienced a correction within its recent upward trend but recovered its losses towards the end of the day. As long as the currency remains comfortable above 1.11, the upward trend is intact. Prices below 1.1080 may indicate increasing signs of euro-weakness.

German and Eurozone Gross Domestic Product reports are scheduled for release today, which could have a significant impact on the euro. The euro could revive its recent strength if numbers beat expectations.

The pound Sterling traded – how could it be any different – sideways. None of our entries was triggered yesterday.

We might see increasing momentum with the release of U.K. and U.S. Consumer Prices and the Federal Reserve Minutes next week.

We gained a nice weekly profit, so today we will save our profits and do not invest too much.

Important reports to watch today (timezone GMT):

6:00 EUR German GDP

8:30 UK Construction Output

9:00 EUR Eurozone GDP

9:00 EUR Eurozone Consumer Prices

13:15 USA Industrial & Manufacturing Production

14:00 USA Michigan Confidence 

We wish you a beautiful weekend!

Daily Forex signals:

View our daily signal alerts http://www.maimar.co/category/daily-signals/

Subscribe to our daily signal service http://www.maimar.co/signals/

We wish you good trades and many pips!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2015 Maimar-FX.

www.maimar.co

 

 

Euro as a safe-haven currency

Dear Traders,

Who would have thought it: Not long ago, the euro seemed to depreciate to parity against the U.S. dollar. Now, however, on the back of China’s devaluation and a cloudy outlook for a Federal Reserve rate increase, the euro is trading as a safe-haven. A September liftoff is still on the table, but expectations for the first rate hike since 2006 have been pushed back.

EUR/USD

The euro broke above its 1.11- resistance, touching a one-month high of $ 1.1213. This level could meanwhile act as a new hurdle for the currency pair. Above 1.1215, chances are that the euro heads for a test of 1.1279 and further 1.1375.

Below 1.1040 the euro could again tend towards its support around 1.09-1.0850.

Chart_EUR_USD_Daily_snapshot13.8.15

The British Pound did not move much yesterday. Our long-trade has exactly reached its profit target, and that was yet the highest level. GBP/USD is still captured within a consolidated trading range between its resistance zone 1.5650-90 and a current support at 1.5450. Traders will need to wait for break-outs of this range before expecting fresh momentum to either side.

U.S. Advance Retail Sales are scheduled for release today at 12:30 GMT, an important report which could trigger a strong reaction in the dollar.

Daily Forex signals:

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We wish you good trades and many pips!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2015 Maimar-FX.

www.maimar.co

 

 

Is China’s Devaluation good or bad for the U.S. Dollar?

Dear Traders,

The euro rallied as Greece reached an initial agreement with creditors on the terms of a third bailout. Euro-bulls were able to gain a nice profit until the current resistance around 1.1080.

The U.S. dollar got no major support from China’s Yuan devaluation.

While China’s move to devalue the currency by 1.9 percent raises doubts on the health of the world’s second-largest economy and generally leads to safe-haven flows into the U.S. dollar, the currency move could also pose a challenge for the Federal Reserve. One of the major concerns for the Fed is a strong U.S. dollar, which is holding inflation low. In a currency environment of an easier money path where other central banks are going to ease monetary policy in order to boost exports, it could be hard for the Fed to justify an interest rate hike this year. This fueled speculation the Fed’s actions could be pushed into 2016. With this in mind, the U.S. dollar could be vulnerable to further weakness in the near-term.

The British Pound traded sideways, accompanied by a slight downward tendency. The U.K. labor market report is due for release today at 8:30 GMT. Average Weekly Earnings are forecast to show a decline which could pose further downward momentum for the pound sterling.

The only piece of eurozone data today will be Industrial Production scheduled for release at 9:00 GMT.

Daily Forex signals:

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We wish you good trades and many pips!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2015 Maimar-FX.

www.maimar.co