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Muted Market Conditions As Meaningful Event Risks Lack

Dear Traders,

There was little consistency in the performance of the U.S. dollar ahead of the Federal Reserve rate decision on Wednesday. The greenback slightly strengthened against the euro but gains were limited to a low of 1.1625. While the USD remains an unattractive buy against other better-positioned currencies, we expect higher volatility in all USD crosses starting tomorrow.

EUR/USD: The euro revisited its current support area around 1.1620 but refrained from trading any lower than 1.1625, at least for the time being. We still see an important resistance at 1.17/1.1715. On the downside, a break below 1.1615 could spark bearish momentum towards 1.1540.

GBP/USD: The cable traded flat between 1.3060 and 1.3015. Any price breakouts either above 1.3060 or below 1.2990 could result in more meaningful swings.

Important economic data scheduled for release today:

8:00 EUR German IFO Index

14:00 USA Consumer Confidence

(Time zone UTC)

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

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Is The U.S. Dollar Poised For A New Round Of Strength

Dear Traders,

The U.S. dollar regained some of its strength, pushing the euro and cable lower. While the euro stopped its fall slightly above 1.0560, the British pound turned out to be Monday’s worst performer and dropped towards 1.2385. British companies are increasingly pessimistic about the future outlook and with the Brexit debate intensifying, the pound remains vulnerable to larger losses. We currently see a higher likelihood of a bearish breakout in the GBP/USD but we recommend traders waiting for a break below 1.2350 in order to sell sterling.

European Central Bank President Mario Draghi warned that Britain, rather than the Eurozone, would be the first to suffer from the consequences of a Brexit. When speaking at the European Parliament in Brussels on Monday he described a cocktail of political risks hanging over the global economy, including the Brexit vote, Donald Trump’s election and the looming Italian referendum. Draghi also signaled the ECB’s readiness to continue its monetary stimulus. At the ECB meeting next week, the central bank is widely expected to announce an extension of its bond-buying program.

EUR/USD – Interesting chart formation

While there are good arguments for both bulls and bears favoring one direction or another, it should be interesting in which direction the euro may be heading within the next days. Given the uncertainty ahead of the Italian referendum, the risk is to the downside but with investors staying on the sidelines in the run-up to the important vote on Sunday, the euro could also trade directionless sideways. For the time being, we expect the pair to range-trade between 1.0670 and 1.0570. Above 1.0670 it may head for a test of 1.0710, whereas a break below 1.0560 may invigorate fresh bearish momentum towards 1.0470.

chart_eur_usd_4hours_snapshot29-11-16

Important economic data for today:

13:00 EUR German Consumer Price Index

13:30 USA GDP Report

15:00 USA Consumer Confidence

(Time zone: UTC)

Daily Forex signals:

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

View our daily signal alerts http://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

 

 

 

Is The Cable Poised For A Breakout?

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 http://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

 

 

 

Quiet Summer Months

Dear Traders,

It was a quiet start to the new week with both major currency pair fluctuating within narrow trading ranges. Generally, the summer months of July and August are traditionally the quietest time of the year in the financial markets. Hence it is not unusual that the market is sluggish. Given these moderate market conditions we advise traders to take profits even at smaller targets as the market may fail to generate major moves and do not invest too much during the summer period.

The euro traded slightly higher against the U.S. dollar after figures showed the German Ifo index fell less than expected in July. However, the euro was not able to break through the 1.10-hurdle and remained in a sideways movement. Once it climbs above 1.10, we expect the 1.1025/30-level to act as a resistance for the currency pair. Today’s price action will hinge on the appetite for dollars as the focus will be on important U.S. data such as Consumer Confidence due for release at 14:00 UTC.

The cable traded sideways between 1.3165 and 1.3080. We will now focus on a break below 1.3070 in order to sell sterling toward lower levels. On the upside gains might be capped at 1.32.

Daily Forex signals:

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

View our daily signal alerts http://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

 

 

 

Pound Takes Breather While The Euro Stabilizes Around 1.1050

Dear Traders,

While the British pound extended its record selloff in the aftermath of last week’s vote, the euro traded sideways Monday, straining the nerves of breakout-traders as price movements were limited to either side. The euro gained some ground above the 1.0970-level, but this does not necessarily mean that bearish momentum has already been exhausted. If the euro breaks again below 1.10 we see chances of a renewed downslide towards 1.0950 and 1.09. On the other hand, if the euro climbs above 1.1085 a next crucial resistance level is seen at 1.1133. The euro would need to break that level significantly in order to invigorate fresh bullish momentum.

Chart_EUR_USD_4 Hours_snapshot28.6.16

The pound sterling tagged a fresh low at 1.3120 from where it started a relief rally. The focus will now shift to the 1.3475-resistance and in case sterling is able to take this hurdle, we could see a rally towards 1.37 and 1.3780. However, if GBP remains below 1.3360 we favor a bearish stance with a next lower target at 1.3050.

From the U.S. we have revisions to first-quarter GDP scheduled for release at 12:30 UTC followed by Consumer Confidence at 14:00 UTC. Theses reports may have an impact on the greenback but for the time being, economic reports are likely to be of secondary importance as compared with talks about the guidance on how the U.K. will be extricated from the EU bloc. Prime Minister David Cameron will meet EU leaders for dinner today.

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

 

 

Despite Low Volatility Bulls Still Gain The Upper Hand

Dear Traders,

Despite worse-than-expected German business-confidence data the euro has held up well against the U.S. dollar Monday. Although prices fluctuated within a confined band of only 40 pips, the euro showed resilience against the greenback ahead of the Federal Reserve meeting. With the euro remaining firmly above 1.1240, we expect another test of the 1.13-barrier, which may result in an upswing towards 1.1335 and 1.1355. However, while we do not expect a shift in sentiment a test of these lower resistances might be likely before the Fed statement.

The British pound tested the 1.45-mark but was unable to sustainably maintain the high price level. Whether we will see an extended upside move remains to be seen and should also hinge on the performance of the U.S. dollar. Above 1.4520 the pound could extend its gains towards 1.4560 and 1.4590. However, below 1.4480 it could fall back towards 1.4450 and 1.4410.

Traders should keep an eye on important economic data from the U.S. such as Durable Goods Orders, scheduled for release at 12:30 UTC and Consumer Confidence due at 14:00 UTC.

Daily Forex signals:

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

Subscribe to our daily signal service http://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

 

 

 

Bearish Bias On GBP/USD And EUR/USD

Dear Traders,

Uncertainty and potential risks in the event of a Brexit overshadowed the financial markets Monday and triggered a sharp sell-off in the British pound. Rating companies warned that a U.K. exit from the European Union would hurt business confidence and affect investment negatively. As a result, sterling fell to its lowest level in almost seven years, touching a fresh low at 1.4057. Traders are now wondering how low can GBP go and since we know about the sustainability of sterling’s trends and its ability to fall several consecutive trading days without a major correction, we expect further losses towards 1.40, 1.3960 and 1.39. We bear in mind that, for the time being, the 1.40-level could act as psychological barrier before heading towards record lows at 1.36. A next lower target could be at 1.4020, whereas current resistances are seen at 1.4250 and 1.43.

The next event risk for the pound will be Bank of England Governor Carney’s testimony scheduled at 10:00 GMT today. Carney testifies to lawmakers about the outlook for the U.K. economy and monetary policy and given the BoE’s latest inflation and growth projections, the odds favor further downside momentum.

The euro finally broke below 1.1070 and fell all the way down towards the 1.10-barrier, which has led a current support for the EUR/USD. We expect bearish potential to continue in the near-term, sending the currency pair towards 1.0970 and 1.0920. On the upside, previous support-areas at 1.1070 and 1.11 could now act as resistances.

The German IFO Survey is scheduled for release at 9:00 GMT and could have an short-term impact on the euro.

From the U.S. we will have Consumer Confidence scheduled for release at 15:00 GMT and figures are forecast to show a decline in February which could negatively affect the greenback in short time frames.

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

 

 

 

GBP/USD: Further Weakness Ahead? Focus On A Break Of 1.42

Dear Traders,

Not much has changed since yesterday and trading was relatively quiet. The EUR/USD traded slightly higher against the U.S. dollar despite a weaker Ifo report. Neither the fact that it was the lowest reading in almost one year, nor cautious comments from Mario Draghi, who is trying to convince investors that the ECB is willing to act if needed, could weaken the euro. On the contrary, the common currency rose above 1.0845 and tested the next resistance level at 1.0860. If the euro is able to break above 1.0865/75 we will shift our focus to the 1.09-level again. Ahead of the FOMC statement on Wednesday, we expect the EUR/USD to remain within its current range between 1.0940/80 and 1.0770/15.

Despite the low level of volatility our short-entry in the GBP/USD turned out to be somewhat unfortunate and any further bearish momentum was blocked by the recent support level at 1.4230. Sterling traders should now pay attention to a break of 1.42. If GBP falls significantly below that level, we could see the pair sliding towards lower levels at 1.4155, 1.4130 and even 1.41.

Bank of England governor Mark Carney will testify to lawmakers on financial stability today at 10:45 GMT. Renewed concerns about a potential Brexit and the U.K. outlook may increase the pressure on the British pound.

The most important piece of U.S. data on today’s calendar will be Consumer Confidence, due for release at 15:00 GMT, which may have a short-term impact on the 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

 

 

 

Euro with tailwind, sterling may have bottomed out

Dear Traders,

Yesterday’s trading has been relatively quiet. After the euro refrained from taking any dips below 1.1145, euro bulls finally got their chance to gain some pips after EUR/USD broke above 1.1215. The British pound, however, followed its downward trend against the U.S. dollar and fell toward its recent support at 1.5155.

Today, traders should focus on eurozone data, such as German Consumer Prices, due for release at 12:00 GMT and important U.S. data, scheduled for release at 14:00 GMT – Consumer Confidence. Furthermore, Bank of England Governor Carney is scheduled to speak in London at 19:40 GMT, which could impact the pound sterling.

EUR/USD

While we generally expect the euro to trade lower in the long-run, the pair is currently heading upwards because of less-dovish comments of ECB policymakers, downplaying the possibility of further QE. Nonetheless, today’s inflation data will be interesting to watch, as the report could have a significant impact on the currency. If the German CPI indicates further weakness, the euro could come under increasing pressure.

Next resistances are seen at 1.1275, 1.1320 and 1.1360.

Supports could be at 1.1220, 1.1185 and 1.1120.

GBP/USD

The pound showed further weakness versus the greenback despite expectations that the BoE will not be far behind the Federal Reserve in relation of raising interest rates. Speculations are that the BoE could start tightening by February 2016.

If GBP breaks below 1.5135 a next support could be at 1.51 and 1.5080.

We see a current resistance at 1.5210. Above 1.5220, GBP may head for another test of 1.5260 and 1.5285.

U.K. Mortgage Approvals and Net Consumer Credit are scheduled for release at 8:30 GMT, reports which could have only a limited impact on the currency.

Daily Forex signals:

View our daily signal alerts http://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 2015 Maimar-FX.

www.maimar.co