Dull Market Allows Only Small Movements

Dear Traders,

Yesterday was another quiet trading day in the summer markets. The euro’s upward movement towards 1.12 provided bullish traders a small profit, whereas the cable lacked direction and traded sideways roughly between 1.31 and 1.30. Sterling traders should now wait for a sustained break above 1.31 to buy or, respectively, a break below 1.2990 and 1.2950 to sell pounds.

The euro flirted with the 1.12-level but proved unable to overcome the recent resistance level at 1.1190. Euro bulls would need to push the currency pair above 1.1220 in order to increase the chances of further upside momentum towards 1.1250 and 1.13.

Summer holiday break: August 12 – August 31 

During this period we will not provide our daily signal service. The signal service will be resumed on September 1.

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Euro And British Pound Rebound On U.S. Dollar’s Inconsistency

Dear Traders,

The market remains very quiet with low trading volumes and limited movements. And so it happened that both euro and British pound rebounded against the U.S. dollar after the recent downtrend failed to be sustained as bearish momentum faded. Hence, sterling bears’ efforts didn’t pay off and we had to record some losses with yesterday’s short-entry. Now that sterling trades again above 1.30, the focus shifts to the current resistance levels at 1.3120 and 1.32 from which limit sell orders become attractive. However, if the pound falls back below 1.30 we will focus on a break of 1.2950.

The euro finally climbed above 1.11 and rose towards 1.1160 during the Asian trading session. Our long entry therefore proved to be successful. With no market moving data we doubt that we will see larger fluctuations today. The euro’s price action could thus be limited to 1.12 on the upper and 1.1095 on the lower side. Above 1.12, however, there might be some upside room until 1.1250. An important support zone is still seen around 1.1050.

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We wish you good trades and many pips!

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Copyright © All Rights Reserved 2016 Maimar-FX.

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Small Profits Amidst Quiet Trading Environment

Dear Traders,

We welcome you to the last trading days before our summer holiday break. While Friday’s strong payrolls report spurred many investors to hope for a Federal Reserve rate increase by the end of this year, the gains in the U.S. dollar were limited due to the lack of momentum during the traditional quiet summer month of August. As a result of these weak market conditions and low volumes, traders must be satisfied with smaller profits.

The greenback advanced against its major peers on the back of greater U.S. jobs growth, but it seemed as if the euro and British pound were looking for a support, rather than paving the way for further dollar gains. The euro tested the 1.1050-level which proved to withstand the downward pressure for the time being. Given that crucial support level short-traders should better wait for prices below 1.1040 in order to sell the euro towards 1.0970 and 1.09. The British pound rebounded after testing the 1.3020-level, which led support to the pound. As long as sterling remains above 1.30 there is no reason to focus on lower price targets. With no market moving data on the calendar until the final day of the week we expect the price action in both major currency pairs to be limited to narrow trading ranges.

It might be a quiet week as the only interesting pieces of economic data will be released on Friday with the German and Eurozone GDP reports, followed by U.S. Retail Sales and Michigan Confidence.

We wish you a good start to the new week and recommend trading by a low-risk management as the current market conditions are less profitable.

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Additional daily and long-term entries are available for subscribers.

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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 2016 Maimar-FX.

www.maimar.co

 

 

 

All Eyes On U.S. Payroll Report

Dear Traders,

The biggest story in the markets yesterday was the British pound which dropped like a stone after the Bank of England unleashed a stimulus package to combat the post-Brexit fallout. All MPC policy makers have unanimously decided to cut interest rates for the first time in seven years while further rate cuts may follow later this year if the economic outlook proves to remain grim. BoE Governor Carney said in his statement that the central bank “took these steps because the economic has changed markedly”, declaring that all elements of the stimulus can be taken further, including another rate cut. Furthermore, the BoE cut its growth forecast for 2017 to 0.8 percent from 2.3 percent (the most ever) and lowered its 2018 predictions. All this was enough for sterling bears to drive the pound lower towards 1.31. A next support area could now be at 1.3085-1.3065. Once the 1.3060-level gives way to the downward pressure, we could see sterling falling towards 1.30.

The euro remained largely unchanged against the U.S. dollar and traded comfortably between 1.1150 and 1.1115. We were a bit unlucky with our short-entry at the lower bound of the euro’s trading range which was exactly triggered before the price reversed. We now focus on a break below 1.11 before shifting the attention to the 1.1050-support. Euro bears should rather wait for prices below 1.1050 in order to sell the euro towards lower levels. However, above 1.1190 the euro may head for another test of 1.1230. A current resistance is seen at 1.1275.

Chart_EUR_USD_4Hours_snapshot5.8.16

Today it’s payrolls-day again and all eyes will be on the highly anticipated U.S. labor market report at 12:30 UTC. The monthly jobs report will provide more information on whether the Federal Reserve can raise interest rates in 2016. The report is expected to show a slower job growth in July after the strong increase in June but this does not necessarily mean that dollar bulls have no chance this month. Market participants will also pay close attention to the unemployment rate and wage growth figures and if these headlines come in with a positive surprise the dollar will rally. In case of any disappointments however, the greenback might be vulnerable to losses.

We wish good trades and a beautiful weekend.

Daily Forex signals:

Additional daily and long-term entries are available for subscribers.

View our daily signal alerts http://www.maimar.co/category/daily-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 2016 Maimar-FX.

www.maimar.co

 

 

 

Will The BoE Deliver Or Disappoint?

Dear Traders,

The U.S. dollar slightly advanced versus the euro after the ADP report came in better than expected. Unlike the euro, the British pound lacked direction before the Bank of England’s rate decision and fluctuated within a sideways range of 100 pips.

Today, there is only one subject in the market: The Bank of England rate decision and Inflation Report, scheduled to be released at 11:00 UTC. Our focus therefore shifts to the GBP/USD as we prepare for volatile swings. While a 25bp rate cut is widely expected, the price action will depend on how aggressive BoE policymakers will support their dovish stance. If they signal further easing in the near-term, the pound could quickly fall towards 1.32 and even lower. On the other hand, if the central bank is in no hurry to introduce further easing except the anticipated 25bp rate cut, investors could be disappointed and give up on their short positions. The pound could surge as a result of a less dovish BoE.

However, as stated in yesterday’s analysis the 1.3420 level could act as a crucial resistance for the pound. Hence, gains could be limited until 1.3425 and 1.3480. Only a significant break above 1.35 would change the bias in favor of the bulls. On the bottom side, we will focus on the 1.32-level. In case sterling drops below 1.3170 we see chances of an extended downward move towards 1.3030.

Given the fact that today’s focus is on the pound sterling, we do not expect larger fluctuations in the EUR/USD. The euro could trade sideways between 1.12 and 1.11. We recommend traders not investing too much today and take profits at smaller targets if there are any.

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 2016 Maimar-FX.

www.maimar.co

 

 

 

Currency Pairs Trade Almost Motionless

Dear Traders,

The currency market was fairly quiet or rather motionless on Monday. While the euro hovered around the 1.1170-mark, the British pound traded slightly lower against the U.S. dollar. Given the fact that the market is short the pound on speculation the Bank of England will ease monetary policy on Thursday, the risk is clearly to the downside. We will pay attention to a break of 1.3150 and 1.3060 in order to sell sterling towards lower levels. Upward movements however, could be limited to 1.3340 and 1.3440.

The only piece of second-tier economic data will be the U.K. Construction PMI scheduled for release at 8:30 UTC. From the U.S. we only have Personal Income and Spending figures scheduled for release at 12:30 UTC alongside the PCE report. These reports are not expected to have a significant impact on the currencies.

As there will be no market movers today, the consolidation phase may continue to dominate the markets. We therefore do not expect any major movements and recommend taking smaller profits if there are any.

Daily Forex signals:

Additional daily and long-term entries are available for subscribers.

View our daily signal alerts http://www.maimar.co/category/daily-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 2016 Maimar-FX.

www.maimar.co

 

 

 

Volatile Swings Expected Throughout The Entire Week

Dear Traders,

We welcome you to the trading month of August. While markets are usually quieter during this summer month, the first week of August might be different this year as we have big market movers ahead of us. Before the highly anticipated U.S. Nonfarm Payrolls report, due for release on Friday, traders will scrutinize the ISM Manufacturing (Monday) and ISM Non-Manufacturing index (Wednesday). Apart from these market-moving reports, sterling traders prepare for a volatile week as the Bank of England is expected to cut interest rates and add stimulus to stem a potential fallout from Brexit. Analysts predict an aggressive action from the BoE, which could increase the pressure on the British pound. The BoE will announce its rate decision alongside the release of its Quarterly Inflation Report on Thursday. While the overall bias remains bearish for the pound, traders should prepare for volatile swings ahead of “Super-Thursday”. The sentiment only changes from bearish to bullish in case of a sustained break above the resistance area at 1.3485/1.35. On the other side however, if sterling is not able to break below 1.30 in order to reinvigorate fresh bearish momentum, we expect the current sideways trend to continue.

The U.S. dollar weakened against its counterparts after the U.S. GDP expanded at less than half the rate economists had forecast. The weak domestic data led to speculation the Federal Reserve may push back a rate increase to 2017. The focus therefore shifts to the U.S. labor market report this week and it would need an ambiguous strong report to help the dollar.

EUR/USD

The euro rallied towards 1.12 on the back of dollar weakness and broke above a secondary downward channel while it is now facing the higher resistance line of its primary downward channel at around 1.13. Gains might be limited until that level, whereas the 1.11-level could lend a short-term support to the euro.

Chart_EUR_USD_4Hours_snapshot1.8.16

Important economic data for today:

7:55 EUR German Manufacturing PMI

8:30 UK Manufacturing PMI

14:00 USA ISM Manufacturing

(Time zone: UTC)

Daily Forex signals:

Additional daily and long-term entries are available for subscribers.

View our daily signal alerts http://www.maimar.co/category/daily-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 2016 Maimar-FX.

www.maimar.co