Archegos Capital Management

Not much was going on in the Forex market on Monday.

Headlines about the Archegos Capital Management implosion and concerns about a potential contagion effect did not affect the currency market. In a nutshell, the risk rally continues on the back of the protective shield of Federal Reserve stimulus and investors enjoy it while it lasts.

GBP/USD: The pound headed for a test of the 1.3850-resistance area but bullish momentum was not enough to push the pair higher, so the cable finally ended the trading day virtually unchanged. In short-term time frames, we will now focus on a downside break of 1.3750 which could lead to further losses towards 1.3670. On the upside and above 1.3815 again, we may see another leg up targeting at 1.3870-80.

EUR/USD: The euro remained stuck in a very narrow trading range between 1.1795 and 1.1760. We will have to wait and see.

DAX: The index climbed towards 14900 and the 15000-level is the next target for bulls. If the index falls however below 14800, chances could shift in favor of the bears.