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EUR/USD & GBP/USD: Range-Bound Price Action

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Dear Traders,

There was nothing to gain for traders of the EUR/USD and GBP/USD Monday with both major currency pairs trading flat within tight trading ranges. The euro took a brief glimpse above 1.1210 but was unable to hold above that level. The cable however, traded choppily sideways between 1.2760 and 1.2705 while none of our daily signal entries provided a sustained profit.

Market participants will now focus on an address by Fed chair Yellen at 17:00 UTC. If she does not touch on monetary policy, her speech could have very little impact on the U.S. dollar. During the European trading session, monetary policy and financial stability will remain in focus with Bank of England Governor Carney due to speak at 10:00 UTC.

Furthermore, U.S. Consumer Confidence is scheduled for release at 14:00 UTC.

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GBP/USD: Highly Profitable Trading

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Dear Traders,

Those of you who traded the GBP/USD recently, were able to achieve a significant profit by trading our daily signal alerts. Yesterday, this was once more the case while our short trade hit the profit target in less than five minutes. The pound slid to a low of 1.2602 after Bank of England Governor Mark Carney said he is still worried about the impact of Brexit on the economy. Carney said in yesterday’s morning statement that now is not the time to hike rates. In short, his view is still very bearish and with Brexit negotiations having just begun it could be a bumpy road for the U.K. in the next months. In case of any bad headlines, the pound will fall but looking at the technical picture, we currently see chances of a, at least short-term, recovery from sterling’s low levels.

GBP/USD

The currency pair stopped its fall at the lower bound of its recent downward channel. While this does not necessarily mean that further losses are unlikely, that halt just increases the likelihood of a potential pullback towards 1.27 and 1.28. Furthermore, the Relative Strength Index (RSI) approaches oversold territory, underpinning the chances of short-term upward movements. If the pound drops however below 1.2590 we expect accelerated bearish momentum towards 1.2550 and 1.25.

The performance of the EUR/USD is lagging behind since price fluctuations narrowed. The euro declined on the back of a slightly stronger U.S. dollar but the decline was limited to a low of 1.1118. We will now pay attention to a break of 1.11. After the 1.1075-level has been breached, we could see the euro tumbling towards 1.1020. Current resistances are however seen at 1.1150 and 1.12.

Daily Forex signals:

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

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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 And Cable Remain Sideways

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Dear Traders,

The U.S. dollar advanced against its major peers Monday after hawkish comments from Federal Reserve President Dudley provided some relief for dollar bulls. The EUR/USD fell to a low of 1.1140 but refrained from testing the lower 1.11-support level, at least for the time being. Unfortunately, we had to record one false breakout with our long entry at 1.1210 before the downward movement has finally proved profitable. Given the current low-volatility environment, we expect the EUR/USD to remain confined to a range between 1.1230 and 1.11. If the pair dips below 1.11 we could see further losses towards 1.1030. A sustained break above 1.12, however, could send the pair higher towards 1.1280.

The GBP/USD traded sideways while a break above 1.2810 proved only short-lived. Sterling traders will watch Bank of England governor Carney’s speech today at 7:30 UTC. If Carney touches on monetary policy the pound could be vulnerable to some volatile swings. We bear in mind that U.K. inflation has increased above the BoE’s 2 percent goal putting pressure on policymakers to reduce some of the central bank’s stimulus. If Carney begins to express a hawkish stance the pound could rise. Technically we are now waiting for price breakouts either above 1.2820 or below 1.2720.

Daily Forex signals:

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

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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

 

 

 

Trendless And Volatile Price Swings Are A Torment For Traders

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Dear Traders,

We can say that yesterday was a black day for day traders with both major currency pairs fluctuating directionless sideways, wiping out monthly profits. The worst performer was the cable, which was on a roller coaster after the highest U.K. court ruled the government needs parliamentary vote to trigger the countdown to Brexit. While that decision soften the government’s Brexit plans, it was not enough to push the pound toward higher price levels. In contrast, the pound responded with a slide towards 1.24 due to the fact that Scotland, Wales and Northern Ireland did not need to have a say before talks are triggered. This should be some comfort to Prime Minister Theresa May. For traders however, yesterday’s price action proved to be anything but profitable and amidst a high volatile trading environment we had to struggle with false breakouts and choppy price swings.

The GBP/USD still faces a hurdle at 1.2545 and once that barrier is breached on the upside we may see further gains towards 1.2590/1.26. If the pound falls however back below 1.2490 we anticipate further losses towards 1.2415 and possibly even 1.2380.

There are no major important economic reports scheduled for release today. Sterling traders may pay attention to a speech of Bank of England Governor Carney which is scheduled for 16:00 UTC.

The EUR/USD traded sideways between 1.0775 and 1.0720. In an already challenging market environment, characterized by uncertainty and volatility we had a bit of bad luck as our long entry was exactly triggered before the price reversed.

Is the euro formatting a head-shoulders pattern? In short-term time frames we see a higher likelihood of an upcoming bearish breakout provided that the euro falls below 1.0720 while it refrains to trade above the resistance area around 1.0765. Below 1.0720 it may fall towards 1.0680. Above 1.0765 the euro may extend its gains towards 1.0785/1.08.

The German Ifo Index is scheduled for release at 9:00 UTC and could have a short-term impact on the euro.

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

 

 

 

Risk-Aversion Dominates The Market Ahead Of Major Risk Events

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Dear Traders,

The U.S. dollar received less attention as investors turned risk-averse in the light of the latest twist in the U.S. election, causing uncertainty about the outcome of the looming vote. The euro still remained within a narrow trading range and none of our entries was triggered Monday. In order to expect an increase in momentum we now wait for an upside break above 1.0980 or, on the other side, a downside break below 1.0935.

Unlike the non-moving euro, the British pound rose to a high of 1.2249 as Bank of England Governor Mark Carney announced that he will remain in the role until 2019. Carney’s decision to stay at the BoE was seen as a positive for the U.K. even though the pound remains vulnerable to further losses in the medium term. The GBP/USD trades sideways between 1.2275 and 1.21 ans as long as there is no breakout of this range we will have to wait.

The U.K. PMI Manufacturing is scheduled for release at 9:30 UTC but this report is unlikely to have a dramatic impact on the pound.

More important will be the ISM Manufacturing index, due for release at 14:00 UTC which should affect the performance of the U.S. dollar provided that the report surprises to the upside.

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

 

 

 

Is The Cable Poised For A Breakout?

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Dear Traders,

Both of our major currency pairs ended the trading day virtually unchanged as there was not much consistency in the dollar’s performance Monday. The euro tested the 1.09-level on better than-expected Eurozone data. Manufacturing and Services PMI reports showed the fastest pace of economic momentum this year but this uptick was not sufficient to alter the sentiment in the EUR/USD. The euro trades on the increasing divergence in monetary policy between the U.S. and Europe and that is precisely the driver for the euro’s weakness. ECB President Mario Draghi is scheduled to speak in Berlin today at 15:30 UTC and any comments on extending the QE program beyond March could put further pressure on the euro. Before his speech the German IFO index is due for release at 8:00 UTC but this report is not expected to have a significant impact on the currency pair. Technically, we wait for a significant break above 1.0910 in order to buy euros towards 1.0950. On the downside the 1.0860-level remains in focus whereas a break below that level may drive the euro as low as 1.0830.

The pound sterling remained within a tight trading range between 1.2250 and 1.2190. We see chances of an upcoming breakout of that narrow range provided that sterling breaks above 1.2235 on the upside or respectively below 1.2190 on the downside.

chart_gbp_usd_4hours_snapshot25-10-16

Bank of England Governor Carney appears at the House of Lords economic committee today at 14:35 UTC and any comments on future monetary policy changes could have an impact on the pound.

From the U.S. we Consumer Confidence scheduled for release at 14:00 UTC, a report which could influence the dollar’s performance.

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

 

 

 

Upward Movement To Be On Shaky Foundations?

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Dear Traders,

While we actually got the breakouts what we have been looking for, the market’s fluctuations proved to be limited to either side Monday. Sterling traders were able to pocket some profits with both long and short-entries whereas euro traders still struggle with the euro’s poor performance. The EUR/USD fluctuated between 1.1075 and 1.1015 and neither our sell attempt nor a later buy order provided a sustained profit. Consequently, euro traders will need some more patience and wait until market conditions improve.

The pound sterling climbed towards 1.31 as the leadership certainty in the U.K. provided some relief for the currency. Theresa May will be appointed as Britain’s next prime minister and even though May will have to resist pressure to rush into the Brexit negotiations, Britain’s second female prime minister is not seen in a hurry to trigger Article 50, the formal start of an EU exit.

In the meantime, it is going to be a big week for Bank of England Governor Mark Carney, who faces the U.K. parliament’s Treasury Select Committee today at 10:00 UTC, ahead of Thursday’s interest rate decision. Economists expect the BoE to cut rates by 25 basis points, which would be the first rate cut since 2009. With this in mind sterling is expected to remain under pressure ahead of Thursday’s monetary policy decision.

Furthermore, two Fed officials are scheduled to speak today around 14:00 UTC, which could influence the dollar’s performance as long as they maintain a hawkish stance.

The euro rose towards 1.11 but the technical picture has not changed significantly. Long-term swing entries are available for subscribers.

Daily Forex signals:

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 2016 Maimar-FX.

www.maimar.co

 

 

 

Upcoming Downward Move On BoE Financial Stability Report?

/in /by

Dear Traders,

Markets were quiet Monday with both major currency pairs fluctuating within narrow ranges. Unfortunately, breakout-traders had more to lose than to gain as both euro and cable trended sideways without showing any sustained price breakout. However, this may change today with Bank of England Governor Carney outlining the central bank’s macroprudential tools to support the economy in a post-Brexit world. After signaling a willingness to cut interest rates in the near-term, the governor is set to present the financial-stability assessment today at 9:30 UTC.

The governor will give a press conference 30 minutes after the publication of the Financial Stability report. The report and Carney’s rhetoric will be main risk events for traders on Tuesday and could significant influence the pound sterling as well as the euro.

Before coming to the BoE report, Eurozone Retail Sales and U.K. PMI numbers are scheduled for release but these reports are not expected to have a significant impact on the currencies. From the U.S., we have second-tier data such as Factory and Durable Goods Orders scheduled for release at 14:00 UTC.

From a technical perspective we are still looking for breakouts above 1.3340 or below 1.3240 in the GBP/USD and respectively, above 1.1170 or below 1.1070 in the EUR/USD.

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

 

 

 

Sterling And Euro Drop On Fresh Easing Bias

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Dear Traders,

There was not much to be gained for euro traders as the recent trading days were characterized by sideways movements and unsteady swings. Ultimately, trading the EUR/USD didn’t really pay off. Unlike the euro, trading the British pound was much more profitable last month as record high volatility provided many profit opportunities.

Both euro and pound dropped on speculation central banks will expand easing as a consequence of the Brexit chaos. While the European Central Bank may shift the prospects of easing further in the future, the Bank of England could take the first step and cut interest rates by August. BoE Governor Carney signaled a rate cut within months, saying in yesterday’s’ speech “the economic outlook has deteriorated and some monetary policy easing will likely be needed over the summer”. Market participants are now pricing in a BoE rate cut at the early August meeting when the central bank releases new forecasts. Until then, the pound sterling is expected to be vulnerable to further losses.

The euro, however, initially declined on fresh easing bias but the losses were limited. Neither the upside break above 1.1135 provided any sustained profit, nor the downward movement below 1.1085 proved to be successful in the first two attempts. We are looking for better profit opportunities next week with the U.S. Non-Farm Payrolls scheduled for release next Friday.

Today we will keep an eye on important U.S. data such as the ISM Manufacturing index, due for release at 14:00 UTC. If this report comes in with an uptick, we could see the greenback strengthening. The German Manufacturing PMI (7:55 UTC) and U.K. PMI report (8:30 UTC) could be of secondary importance.

We wish you good trades and a beautiful weekend.

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

 

 

 

Market Absorbed Brexit Shock But Don’t Get Fooled By The Upward Correction

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Dear Traders,

Markets stabilized for a second consecutive trading day with the euro rising above 1.11 and the pound touching a high at 1.3534 after the 1.3280-level has proved to be a short-term support. Market participants have got over the Brexit shock from last Friday since a worst-case scenario for the EU and a contagion effect seem relatively unlikely. The focus is therefore gradually shifting back to monetary policy. Economists predict that the Bank of England will cut interest rates before the end of the year, while they see only little chances of a rate increase by the Federal Reserve this year. This fact could limit dollar gains in the short-term, whereas the pound sterling remains under pressure. The price direction will mainly hinge on risk appetite for each currency, although any new hawkish hints from Fed policymakers would provide a boost to the U.S. dollar.

Bank of England Governor Carney is scheduled to speak at 15:00 UTC today and any dovish comments could drive the pound lower. The U.K. GDP is due for release at 8:30 UTC but given the recent uncertainty this report is not expected to have a significant impact on the pound.

GBP/USD

We see the pound formatting a short-term upward channel after its sharp selloff. Once it breaks below that channel, falling back below 1.3370, we expect a higher likelihood of renewed downswings towards 1.3290, 1.3220 and 1.31.

However, above 1.3480 the pound could head towards the upper bound of the trend channel, which is currently around the 1.36-level.

Chart_GBP_USD_4Hours_snapshot30.6.16

 

The euro tested the 1.1130-resistance level, from where it first reversed. As stated in previous analysis we only expect further upward momentum after a significant break above 1.1135/40. However, if the euro breaks below 1.1080, we may see a decline towards 1.1035, 1.0990 and 1.0890.

From the Eurozone we have the German Unemployment report due for release at 7:55 UTC, followed by Eurozone Consumer Prices due at 9:00 UTC. If these reports are in line with expectations the impact on the euro will be limited.

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