Friday’s U.S. Job report surprised to the downside with 209k versus a 225k forecast. The latest job print validated market expectations of a last 25bp Federal Reserve rate hike this month to conclude the overall hiking cycle. The U.S. dollar weakened against the euro and British pound.
Let’s take a look at the technical picture.
GBP/USD – The start of a bullish continuation?
The pound strongly rose towards 1.2850- the recent resistance-area – on the back of a weakening dollar. Looking at larger time frames, we pencil in a next higher target at 1.30 – provided that the pair holds above 1.26 (the lower ascending trendline). However, we bear in mind that the pair entered overbought territory, making it more vulnerable to corrections.
EUR/USD – Hiding within a consolidation range
There are more interesting things in the market than watching the euro’s sideways movement. The pair remains consolidated in a 500-pips trading range between 1.11 and 1.06. Bulls will focus on a recent support at 1.0850 and as long as it holds, we could see a test of the upper resistance area.
DAX – Breaking below 15600
For the first time in three months, the index broke below its recent support at 15600. Given the strength of the latest downward move we expect some further downside momentum toward at least 15400. For a bullish return, it would need a significant break above 15700. A higher target could then be at 16000.
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Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.
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