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U.S. Dollar Weakness Ahead? ADP And ISM Reports In Focus

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Dear Traders,

Trading was relatively quiet Tuesday with the U.S. dollar’s latest recovery losing some momentum. After crucial support zones in the EUR/USD and GBP/USD have been tested, it seems that the euro and pound could find a bottom in the near-term.

EUR/USD: The euro strengthened against the greenback after dipping slightly below 1.17. With the 1.17-support still unbroken, our focus now turns to the 1.1820/30-resistance level which could limit gains in short-term time frames.

GBP/USD: The cable was able to stabilize above 1.3235 and we now anticipate some pullback towards 1.3340/50. For the bias to shift from bearish to bullish it would need a sustained break above 1.3460. A lower support is however seen at 1.3180.

How the dollar will trade within the next two days will mainly depend on the U.S. employment data. Today we have the ADP private payrolls (12:15 UTC) and the ISM service sector activity report (14:00 UTC) scheduled for release. Traders should pay close attention to these reports as they could determine how the USD will trade ahead of the U.S. payrolls report on Friday. Furthermore, we have another speech from Fed Chair Janet Yellen at 19:15 UTC.

Sterling traders may also keep an eye on the U.K. PMI report due for release at 8:30 UTC.

After yesterday’s quiet trading we expect higher volatility today and wish you good trades.

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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!

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Challenging Trading While EUR/USD And GBP/USD Consolidate

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Dear Traders,

Amidst Tuesday’s consolidation phase with both EUR/USD and GBP/USD fluctuating sideways within tight trading ranges, we have suffered some losses with our daily signal entries. Any attempt to buy euros or pounds at lower price levels has failed. We hope for better trading opportunities within the next 48 hours and will keep an eye on the technical barriers.

EUR/USD: If the pair is able to overcome its short-term hurdle at 1.1835/40, we may see a run for 1.1880. On the downside, we will wait for a significant break below 1.1790 but bearish momentum may be limited to 1.1770/60.

GBP/USD: The cable was confined to a narrow trading range between 1.3245 and 1.3195. Sterling bears should keep an eye on price drops below 1.3190 and 1.3150 whereas on the other side, a renewed upside break above 1.3225 may send the pound soaring towards 1.3265.

Interesting data points for today:

8:30 UK Construction PMI

12:15 USA ADP Employment Change

(Time zone UTC)

Daily Forex signals:

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

View our daily signal alerts https://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 2017 Maimar-FX.

www.maimar.co

 

 

 

Market Is Running Out Of Steam; Focus Now On ISM And NFP Data

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Dear Traders,

The FOMC minutes have turned out to be a non-event for traders and failed to lift the U.S. dollar. While the Federal Reserve referenced the hawkish shift in its QE plans, the FOMC was split on the timing for their balance sheet reduction. Moreover, there were some inflation concerns in the statement while Fed officials continued to view gradual interest rate increases as appropriate. With the mixed tone from the minutes, the market’s reaction was muted.

The U.S. dollar neither declined significantly nor did it recover following the minutes. We hope for better trading opportunities today with the ISM service sector and private ADP report scheduled for release. While most attention will be paid to tomorrow’s NFP data, the ISM Non-Manufacturing Index, due at 14:00 UTC could spark some volatile movements ahead of the U.S. Labor report. Before, the ADP employment change report is due for release at 12:15 UTC.

EUR/USD

Recent downward trend channel is still intact within an overall uptrend. The euro was recently confined to a narrow trading range between 1.1370 and 1.1310. With the pair remaining below 1.1350 we expect it to follow the downward channel towards 1.1285. If the euro breaks however above 1.1360 we could see another leg upwards, pointing towards 1.15.

The performance of the GBP/USD was muted with the pair trading more or less sideways between 1.2950 and 1.2890. We will keep an eye on prices either above 1.2960 or below 1.2890.

Daily Forex signals:

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

View our daily signal alerts https://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 2017 Maimar-FX.

www.maimar.co

 

 

 

Euro Trends Sideways While Cable Extends Losses

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Dear Traders,

While the euro showed only little movement on Tuesday, short traders that sold the British pound have benefited from the downswing until a low of 1.2169. Volatility in the EUR/USD is still low with the currency pair remaining range bound. Euro traders await tomorrow’s ECB meeting for further direction. Until then, we may have to watch the euro trading between 1.0640 and 1.0490.  In the hourly chart we currently see a higher likelihood of upcoming bearish momentum, provided that the euro drops significantly below 1.0560. This assumption is based on a descending triangle in the hourly chart. If the euro breaks however above 1.0575, that chart pattern becomes void.

Unlike the euro, the GBP/USD could be vulnerable to pullbacks after having dropped as low as 1.2169. If the pound breaks above 1.2215 we may see a correction towards 1.2250 and 1.2280.However, if sterling falls back below 1.2190 it could extend its losses towards 1.2140/30.

In short-term time frames we see an ascending triangle which could predict upcoming bullish momentum.

 

From a fundamental perspective, the only interesting piece of economic data will be the ADP Employment report scheduled for release at 13:15 UTC which could have an impact on the greenback.

Daily Forex signals:

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

View our daily signal alerts https://www.maimar.co/category/daily-signals/

Subscribe to our daily signal service https://www.maimar.co/signals/

We wish you good trades and many pips!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2017 Maimar-FX.

www.maimar.co

 

 

Euro On A Rollercoaster While Pound Continues To Weaken

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Dear Traders,

The broad-based strength of the U.S. dollar drove the activities in the currency market and allowed for adequate profits for sterling and euro bears. The British pound was hit hard by Brexit concerns on the one hand and dollar strength on the other. As a result, the cable fell to a 31-year low against the greenback and traders prepare for further losses in the GBP/USD. While the pound is expected to depreciate further ahead of Britain’s planned exit from the EU, investors believe that a weaker currency will help to boost British exports, making larger U.K. companies more competitive.

Technically, we expect the 1.27-level to lend a short-term support to the pound before we may see further losses. In case that the 1.27-mark withstands the downward pressure, we anticipate a correction toward the 1.28-level.

The euro was accompanied by higher volatility on Tuesday and losses in the EUR/USD were soon erased after a report said that the European Central Bank will probably taper bond purchases before the conclusion of quantitative easing. The euro overreacted on that hawkish statement and jumped towards 1.1250. Nevertheless, the technical picture has not changed materially as the euro is still confined to its tight trading range between 1.1240 and 1.1140. Above 1.1240 we may see a renewed test of 1.1270 while a current support is still seen around the 1.1130-level.

Today, we have some interesting economic data scheduled for release, influencing the price development of both major currency pairs:

8:30 UK Services PMI

9:00 EUR Euro-zone Retail Sales

12:15 USA ADP Employment Change

14:00 USA ISM Non-Manufacturing Composite

(Time Zone UTC)

Daily Forex signals:

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

View our daily signal alerts https://www.maimar.co/category/daily-signals/

Subscribe to our daily signal service https://www.maimar.co/signals/

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

 

 

 

U.S. Dollar Suffers Losses After Yellen Sends Dovish Message

/in /by

Dear Traders,

While dollar bulls may have hoped for salvation before Yellen’s speech in New York, the chair indoctrinated the market with a dovish message and stressed the need for a cautious approach. Yellen stated detailed conditions investors need to watch for future rate hikes. These conditions contain the stabilization of commodity prices and foreign economies. Furthermore she stressed the importance of a strong dollar, which would depress inflation and exports if it appreciates further.

The most dovish line was when Yellen said that the committee “would still have considerable scope” to ease policy if needed, smashing down the latest hawkish comments from Fed officials pointing to the possibility of a rate hike in April. The Fed chair said it was appropriate to “proceed cautiously” and reiterated that the Fed is not following a pre-set course of rate hikes, but will act when conditions are right.

On the bottom line we can say that there is not much hope for the U.S. dollar to show signs of recovery in the near-term. Yellen’s dovish message diminished rate hike expectations for 2016, changing the odds in favor of a December rate hike or even later.

As expected in yesterday’s analysis, the euro headed for a test of 1.13 after breaking above 1.1260. We expect the euro to continue its bullish bias and focus on a break above 1.13 and further 1.1340. If the euro is able to climb above the February high of 1.1376 we see a next resistance at 1.1430/50 before facing the 1.15-barrier. Current supports are seen at 1.1250 and 1.1220.

The British pound responded with the most volatile upswing, jumping more than 130 pips from our long-entry. As stated in yesterday’s analysis the pound could be vulnerable to losses after peaking at 1.44/1.4430. However, a break above 1.4450 could send sterling towards 1.45. On the bottom side we expect the 1.43-level to lend a current support to the GBP/USD.

Traders should pay close attention to important economic data, such as the German CPI, scheduled for release at 12:00 GMT followed by the ADP report 15 minutes later.

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

 

Upcoming breakouts?

/in /by

Dear Traders,

While the British pound experienced a rollercoaster ride, trading choppily sideways between 1.4020 and 1.39, the euro continued its recent downward trend against the U.S. dollar Tuesday. The greenback strengthened after the ISM index showed a higher reading, adding to evidence that the pressure on manufacturing may be easing.

Nevertheless, both of our major currency pairs failed to show sustained movements yesterday, raising the chances of upcoming break-outs – perhaps as early as today. Dollar bulls are eager to see whether the labor market is showing further signs of improvement and today’s ADP report may provide a little foretaste of the NFP report. However, disappointing ADP numbers could prompt investors to refrain from any long dollar positions ahead of Friday’s high risk event.

The euro dropped as low as 1.0834 but ended the day unchanged against the dollar. Consequently, the technical outlook has not changed and a downside break of 1.08 could be a next possible scenario. On the upside we will focus on a break above 1.09, which could drive the euro towards 1.0950/60.

GBP/USD

Traders had to struggle with sharp fluctuations and false breakouts within a narrow 100-pip trading range. Given the recent consolidation we expect a breakout in the near-term, triggering fresh momentum. Current resistances are seen at 1.4030 and 1.4070, whereas support levels are seen at 1.3905 and 1.3850.

The U.K. Construction PMI is scheduled for release at 9:30 GMT and could have a short-term impact on the GBP.

Important economic data for today:

9:30 UK Construction PMI

10:00 UK BoE’s Broadbent speaks

13:15 USA ADP report

15:30 USA Crude Oil Inventories

(Timezone GMT)

Daily Forex signals:

View our daily signal alerts https://www.maimar.co/category/daily-signals/

Subscribe to our daily signal service https://www.maimar.co/signals/

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

 

 

 

Upcoming Breakouts?

/in /by

Dear Traders,

Not much has happened yesterday. While the euro slightly extended its gains as far as 1.0940, the British pound fluctuated more or less sideways versus the U.S. dollar. The limited fluctuations in both currency pairs did not permit any sustained profit for traders on Tuesday.

Ahead of Bank of England’s Quarterly Inflation Report and monetary policy announcement on Thursday we expect GBP to trade nervous between 1.4470 and 1.4310/1.4290. The Bank of England is forecast to keep interest rates on hold until after Britain’s referendum on EU membership. In the medium term, investors are pessimistic and pushed back their expectations on the timing of a rate hike. The U.K. Services PMI is scheduled for release at 9:30 GMT and may spur the cable for a breakout of its narrow trading range.

GBP/USD

Prices narrowed and formatted a symmetrical triangle this morning. Traders should focus on a breakout above or below that pattern, which may ignite fresh momentum in any direction.

Chart_GBP_USD_Hourly_snapshot3.2.16

EUR/USD

The technical outlook remains unchanged. Based on a symmetrical triangle in the daily chart, we will focus on an upside break of 1.0960 for any bullish and, vice versa, on a downside break of 1.0835 for bearish engagements.

Chart_EUR_USD_Daily_snapshot3.2.16

All eyes will be on ADP numbers and the ISM Non-Manufacturing index. Both reports are expected to show a small pullback in comparison with the previous month but if numbers show a steeper decline, the USD could further weaken.

13:15 USA ADP Employment Change

15:00 USA ISM Non-Manufacturing Composite

(Timezone GMT) 

Daily Forex signals:

View our daily signal alerts https://www.maimar.co/category/daily-signals/

Subscribe to our daily signal service https://www.maimar.co/signals/

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 Yellen Help Strengthen The Dollar?

/in /by

Dear Traders,

The euro traded higher against the U.S. dollar on stronger Eurozone data, but gains were capped at around 1.0640, the euro’s current resistance zone. The British pound climbed towards 1.5130 but could not hold onto its gains and slipped back to 1.5050. Bank of England Governor Carney did not reveal new signals on monetary policy in his speech yesterday, a reason why the pound lacked direction.

Today’s focus will be on the ADP report and on the speeches of Fed Chair Janet Yellen. The ADP report, which is scheduled for release at 13:15 GMT, is expected to show a slight uptick in job growth. Yellen is due to speak at 13:30 GMT and 17:25 GMT. Dollar bulls are likely to position for a hawkish confirmation, pushing the dollar towards higher levels.

Before this, the U.K. Construction PMI, scheduled for release at 9:30 GMT and Eurozone Consumer Prices, due for release at 10:00 GMT, could have an impact on the GBP’s and euro’s price action.

GBP/USD

Traders should pay attention to the resistance and support levels of the cable’s current trading range. Breaking above 1.5140, sterling could be headed for a test of 1.5190. A significant break of 1.5030, however, may reinvigorate bearish momentum towards 1.50 and 1.4950.

Chart_GBP_USD_4Hours_snapshot2.12.15

EUR/USD

We generally expect the euro to trade lower in the near-term. However, if the euro breaks above 1.0640, it could head for 1.0667 – the resistance line. As bullish momentum could be limited, traders should be cautions with any buy attempts.

Chart_EUR_USD_Hourly_snapshot2.12.15

Daily Forex signals:

View our daily signal alerts https://www.maimar.co/category/daily-signals/

Subscribe to our daily signal service https://www.maimar.co/signals/

We wish you good trades and many pips!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2015 Maimar-FX.

www.maimar.co

 

 

 

U.S. Economic Data in Focus

/in /by

Dear Traders,

Uncertainty dominates the markets which is reflected in the directionless sideways moves of the major currency pairs. These are not good conditions for traders as the lack of a trend does not provide greater profits. In addition, spontaneous and unexpected market reactions pose a greater risk to day-trades. The Greek debt crisis and possible global economic turmoil push back U.S. rate hike expectations, which is a reason why the dollar as a safe haven currency got no strength for a rally either.

On the bottom line, the market has currently no clear focus, neither on an imminent Federal Reserve liftoff, nor on a predictable outcome and the impact of the Greek crisis.

We will have to be patient even if we suffered losses recently. As soon as the general focus shifts again to economic data and rate hike speculations, we expect the market to provide more profitable chances for traders. The next big uncertainty is the Greek referendum on Sunday. Until then currencies may remain trading sideways.

Today’s economic data may trigger some price action:

7:55 EUR German Manufacturing PMI

8:00 EUR Eurozone Manufacturing PMI

8:30 UK PMI

9:30 EUR Eurozone Teleconference (Greece Proposals)

12:15 USA ADP Employment Change

14:00 USA ISM Manufacturing 

Daily Forex signals:

View our daily signal alerts https://www.maimar.co/category/daily-signals/

Subscribe to our daily signal service https://www.maimar.co/signals/

We wish you good trades and many pips!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2015 Maimar-FX.

www.maimar.co