Limited Upward Momentum?

Bullish momentum proved to be limited in the EUR/USD and GBP/USD yesterday. Unfortunately, however, our buy orders were triggered before prices reversed which is why we had to record two loss-making fake-outs. We now focus on technical support levels such as the 1.20-area in the GBP/USD and the 1.0350-level in the EUR/USD, given prices remain below 1.22 (GBP/USD) and 1.05 (EUR/USD).

The DAX headed for a test of its current support area between 14250 and 14100. A significant break below 14100 could see increased bearish momentum towards 13800 and possibly even lower. Above 15000, the sentiment changes in favor of the bulls.

Our trading ideas for today 7/12/22:

EUR/USD

Long @ 1.0480

Short @ 1.0435

GBP/USD

Long @ 1.2160

Short @ 1.2080

DAX® (GER40)

Long @ 14310

Short @ 14240

Settings for all trades today: Entries from 8:00 am UTC, SL 25, TP 40

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.