Posts

Sluggish Market Conditions Persist Amid Geopolitical Tensions

Dear Traders,

Risk aversion and the liquidity drain ahead of the Easter holiday are hobbling the market. Tuesday’s best performer, however, was the British pound which soared to a high of 1.2494. The pound sterling benefited from a weakening U.S. dollar, which suffered some losses amid geopolitical tensions. The U.S.’s recent tougher stance created a new round of risk aversion in the market. However, the longer-term outlook for the dollar is still positive, including higher interest rates from the Fed while dollar bulls are likely to return to the market after the Easter break.

GBP/USD

The bullish movement has stalled near 1.25, a level that is considered a short-term resistance for the currency pair. The pound could possibly extend its gains to 1.2510/15 before we see a stronger correction. A break above 1.2525 however, could open the door for further bullish momentum, driving the cable towards the higher resistance zone around 1.2550/85. A current support is seen around 1.2430.

The U.K. Labor Market report is scheduled for release at 8:30 UTC and could have an impact on the price action. At the same time, Bank of England Governor Carney will speak at an event in London.

EUR/USD

The euro rose to a weekly high of 1.0630 but the currency pair’s price action is still confined to a narrow trading range. For breakout traders there was nothing to gain amid this subdued price development. The situation could persist until the French presidential election on April 23 as investors remain cautious ahead of that trend-setting event. For the time being we expect the euro’s price development to be limited to a range of 1.0650 and 1.0575.

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

 

 

 

Sluggish Market Environment Continues

Dear Traders,

Euro and sterling traders had no reason for rejoicing, even though we saw a slight increase in volatility on Wednesday. Yet there were no breakouts in both major currency pairs and while the cable rose to a high of 1.25, the currency pair was unable to overcome that hurdle, at least until now. The euro – how could it be different – remained sideways between 1.07 and 1.0630. With elections looming in France, investors are risk-averse and refrain from making any new investments in the euro until the political situation becomes more stable. This explains the moderate price development.

The FOMC minutes did little to alter the market’s view on the Fed’s 3-hike total policy outlook in 2017. While minutes restated an optimistic outlook for the U.S. economy, the discussion on shrinking the U.S. central bank’s balance sheet later this year drew most attention. There is speculation that the balance-sheet reduction could damp the need for further tightening from the Fed. The U.S. dollar weakened in response to the Fed’s comments on its balance sheet policy.

From a technical view, there is nothing new to report. We are still waiting for sustained breakouts in both EUR/USD and GBP/USD. With no fresh impetus to the market we expect the cable to remain between 1.2520 and 1.2430, whereas trading the euro only becomes interesting if the pair breaks above 1.07 or below 1.06.

Apart from a speech of ECB president Mario Draghi in the morning at 7:00 UTC, the U.S.-China summit will be of high importance.

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 Trends Sideways While Cable Extends Losses

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

 

 

Risk-Off Ahead Of U.S. Payrolls Number

Dear Traders,

There is not much news to report in the Forex market on Wednesday with both of our major currency pairs moving sideways. Despite stronger than-expected U.S. economic data, the dollar ended the day unchanged against the euro and British pound.

The euro continued to trade sideways within a tight price range of merely 50 pips. None of our entries was triggered yesterday and we will have to wait for price breakouts above 1.1270 or vice versa, below 1.1120.

The pound sterling took a breather and traded consolidated. As long as it remains firmly above 1.27 we shift our focus to the 1.2775-resistance which needs to be breached on the upside in order to invigorate bullish momentum. Below 1.2680 however, we expect the pound to extend its losses towards 1.2640.

Today we get Initial and Continuing Jobless Claims at 12:30 UTC ahead of tomorrow’s big payrolls number, but we don’t expect this report to spark any major movement before the highly anticipated U.S. jobs data release.

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