Sterling bulls were able to book a good profit in the GBP/USD Monday with the pair extending its current rebound towards the 1.3830-50-region, which we expect to serve as a short-term resistance. A break above 1.39, however, could open the door for a run towards 1.40. Below 1.3650, the focus shifts towards 1.35.
EUR/USD: Chances are currently slightly in favor of more upside potential with our focus shifting to the 1.1840-50-area. An upside break of 1.1860 could lead to a test of 1.19 but we do not expect too much amid quiet trading conditions. On the downside, we expect the 1.1735 and 1.1715-levels to act as a support.
DAX: We keep an eye on the price range between 15900 and 15000. A sustained break above 15900 could open the door for a run for 16250. On the downside, a break below 15000 could see a next lower target at 14800.
Summer is in the markets and given a lower-liquidity backdrop across many markets during the summer months the potential for range-bound conditions is high. We therefore recommend traders staying on the sidelines during these low-liquidity periods, taking a break from the markets and adjusting risk exposure. The next major risk event will be later in the summer with the Jackson Hole Economic Symposium August 26-28.
We will take our annual summer trading break from August 2 to August 20 but we adjusted risk exposure even in the month of July.
We wish you good trades!
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