Inflation Data In Focus, Will Euro, Pound And DAX Extend Gains?
Welcome to a new trading week everyone after the holiday-stretched weekend.
All trading instruments have reached the targeted resistance zones but this raises question marks whether recoveries in the euro, pound and DAX can stretch beyond critical resistances.
On Thursday we will have the Eurozone’s flash inflation reading which is forecast to inch slightly lower in November from 2.9 percent to 2.8 percent. Easing inflation could pressure the euro.
The core PCE inflation gauge, also scheduled for release on Thursday, is forecast to have slowed too, with estimates pointing to a drop from 3.7 percent to 3.5 percent in October.
The EUR/USD has enjoyed a positive week, building on its recent rally. As long as the pair remains above the 200-EMA at around 1.0750, bulls can hope for a test of 1.10 and 1.1090.
The GBP/USD tested the 1.26-area where it oscillates at the start of this week. We now see a short-term support at 1.2530, followed by the lower 200-EMA support at currently 1.2415. A break above 1.2660 could open the door for run towards 1.27 and 1.2750.
The DAX surged to a high of 16047 while traders question whether there could be even more upside momentum in store. We prepare for some pullbacks from lofty highs and pencil in a next support at 15850. Above 16070, we will shift our focus to a next resistance at 16240.
Daily Forex and DAX Signals:
If you are keen to know where we put Take-Profit and Stop-Loss, if we trade on a specific day or not and how we manage open positions, subscribe to our signals.
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.
We wish you good trades!
Any and all liability of the author is excluded.
Copyright © All Rights Reserved 2023 MaiMarFX.
Follow us on social media: