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Will Powell Testimony Spark USD Volatility?

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Dear traders,

U.S. dollar selling pressure was felt across most major currency pairs with both EUR/USD and GBP/USD edging higher at the start of the week.

Volatility could pick up Tuesday with market participants eyeing Fed Chair Powell’s semi-annual congressional testimony today at 15:00 UTC. Powell is expected to reiterate the accommodative stance of the Federal Reserve and the need for more fiscal stimulus. Traders will however pay close attention to potential remarks on the Fed’s willingness to keep borrowing costs low amid the recent rise in Treasury yields. While dovish comments could lead to another stretch of dollar weakness, another potential driver of U.S. dollar volatility includes the fiscal stimulus package of $1.9 trillion proposed by President Joe Biden. If there is nothing in the way of finalizing a stimulus deal, the dollar could strengthen.

Furthermore, we have the Eurozone’s Core Inflation Rate scheduled for release at 10:00 UTC which could have a short-lived impact on euro crosses.

We wish you good trades!

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Focus On U.K. Job Report, U.S. Retail Sales

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Dear Traders,

Despite the upswing in the euro and British pound, Monday proved to be a fairly quiet trading day with any larger market moves lacking. While the upside potential in the EUR/USD was limited to a high of 1.1996, none of our daily signal entries was triggered in the GBP/USD. With the crucial 1.20-barrier remaining a hart nut to crack for euro bulls, the focus shifts back to the euro’s down trend and the next support around 1.19. If the single currency drops below 1.1880 we may see a continuation of the euro’s down move.

Revisions to the Eurozone GDP Q1 figures are scheduled for release along with the ZEW Surveys today at 9:00 UTC but both reports might take a backseat to the final April CPI release on Wednesday.

The British pound refrained from a sustained climb above 1.36 and fell back towards 1.3550.

On the data front, we have the U.K. jobs figures scheduled for release at 8:30 UTC and these numbers have the potential to spark volatility in the pound, provided that the report surprises. Sterling traders should thus keep an eye on the job numbers this morning. Technically speaking, the GBP/USD still finds itself within a trading range between roughly 1.36 and 1.35. Looking for sustained breakouts, we will keep tabs on prices either above 1.3650 or below 1.3440.

From the U.S. we have Advance Retail Sales scheduled for release at 12:30 UTC, a report that could have a short-term impact on the price action in the dollar.

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 2018 Maimar-FX.

www.maimar.co

 

 

U.S. Dollar Mixed After FOMC

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Dear Traders,

The U.S. dollar produced a mixed reaction to the FOMC statement and unfortunately, we were caught on the wrong foot when we tried participating in yesterday’s choppy waters. While the dollar showed some pullback on the initial release of the statement, that rebound proved short-lived with the dollar finishing the trading day cautiously higher against the euro and British pound.

The FOMC announcement didn’t really disappoint dollar bulls with the Fed upgrading its view on inflation, even though not so much on economic growth. The chances of a rate hike next month are at 100 percent while odds for a September and December hike remain unchanged.

Trading the choppy swings yesterday proved unsuccessful for day traders but that’s trading and these days can happen.

The euro faces some event risk today with the Eurozone Consumer Price Index, scheduled for release at 9:00 UTC. If CPI data disappoints we might see a drop towards 1.19 in the EUR/USD. Euro bulls, however, should watch out for price breaks above 1.2030.

The British pound dropped to a low of 1.3554 in the aftermath of the FOMC. If the GBP/USD remains below 1.3620 we expect the cable to extend its losses versus the greenback.

From the U.S. we have the ISM Non-Manufacturing Index scheduled for release at 14:00 UTC today.

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 2018 Maimar-FX.

www.maimar.co

 

 

 

 

Will The Dollar’s Strength Continue?

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Dear Traders,

The U.S. dollar received a boost from hawkish comments from Federal Reserve Chair Jerome Powell who conducted his first congressional testimony on Tuesday. The Fed Chair noted that his outlook for the economy has strengthened along with his confidence on inflation getting stronger. Stronger economic growth may prompt policy makers to rethink their plan for three interest rate increases in 2018. These optimistic comments probably led to the market to believe that a fourth rate hike might be in the cards, even though Powell did not mention a number for hikes.

EUR/USD

The EUR/USD was hit hard by Powell’s testimony, falling below 1.2275 and heading towards its important support around 1.22. Whether we will see a sustained break below 1.2160 will now hinge on the appetite for dollars and today’s Eurozone data.

The German Labor Market Numbers are scheduled for release at 8:55 UTC followed by the Eurozone Consumer Price Report at 10:00 UTC. If the CPI report comes in weaker than expected, the euro could further fall.

Technically, bears lie in wait for a sustained break below 1.2160 so that the double-top pattern will be played out. Nevertheless, however tempting that bearish pattern might be, traders should also have a look at the oversold situation in the EUR/USD chart, which could become an obstacle for euro bears.

GBP/USD

Compared to the EUR/USD, losses were limited in this pair. The pound found some support around 1.3850 and it seems as if sterling is still struggling to determine a direction in the near-term. Thus, with the cable still trading within a narrow price range, we see a higher likelihood of potential price breakouts now.

If the price breaks out of the symmetrical triangle, we expect larger movements and even more profitable trading opportunities.

From the U.S., we have the GDP report scheduled for release at 13:30 UTC today.

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 2018 Maimar-FX.

www.maimar.co

 

 

EUR/USD And GBP/USD: Rebounds May Be Short-Lived

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Dear Traders,

Markets were relatively quiet at the beginning of this eventful week while both GBP/USD and EUR/USD were accompanied be a slight upward tendency. We believe that the slight rebound in the euro and British pound could be of a temporary nature as the U.S. dollar faces some event risks with the FOMC decision and Non-Farm Payrolls report on tap. Dollar bulls may tend to jump back in ahead of these events.

The EUR/USD recovered some losses towards 1.1660 but this small recovery could prove to be a correction within a downtrend. For the bias to shift from bearish to neutral euro bulls would need to push the single currency beyond 1.18. As long as the euro remains below 1.18 we favor the bearish bias and focus on a price breakout below 1.1550.

The Eurozone Consumer Price report is due for release today at 10:00 UTC but if CPI print is in line with expectations it will not affect the euro’s price action.

The GBP/USD traded with a tailwind but gains were capped at 1.3215. We consider the 1.3250-barrier to be a crucial short-term resistance in the cable. If the pound drops back below 1.3120 we may see further losses towards 1.3050.

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 And Cable: Sideways Movement Continues

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Dear Traders,

Despite better than-expected U.S. economic data the greenback refused to trade higher versus its major peers – this was at least the case in the EUR/USD and GBP/USD. Having already fully discounted a Federal Reserve rate hike in December, investors will now wait for fresh hints about the future rate hike path before entering new long-term positions.

The euro traded sideways and, as expected, the currency pair remained confined to a trading range of nearly 100 pips. While the support at 1.0560 is still intact the euro might tend to test the 1.0715-resistance level, before resuming its overall downtrend. However, if the euro is unable to trade above 1.0670 we will shift our focus to a renewed break below 1.0580.

The cable remained stuck between 1.2530 and 1.2385. A break above 1.2530 may send the pound slightly higher towards 1.2550 but for the pound to rise towards higher targets this resistance level must be significantly breached in order to ignite fresh bullish potential. On the downside we will keep an eye on a break below 1.24.

The Bank of England publishes the results of its annual bank stress tests alongside its Financial Stability Report at 7:00 UTC. Following the report, BoE Governor Mark Carney will hold a press conference, so sterling traders should keep an eye on the price development as the pound might be vulnerable to volatile swings.

From the Eurozone we have the German Unemployment Report scheduled for release at 8:55 UTC, followed by Eurozone CPI data at 10:00 UTC. Chances are that these reports will have a positive impact on the euro, pushing it towards 1.0715. Furthermore, ECB President Mario Draghi speaks in Madrid at 12:30 UTC.

Last but not least, it should be worth watching the release of upcoming U.S. data, such as the ADP report due at 13:15 UTC, PCE numbers at 13:30 UTC and the Fed’s Beige Book at 19:00 UTC.

So it could be an interesting trading day with hopefully profitable trading chances.

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

 

 

 

Difficult Market Environment

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Dear Traders,

The market environment is difficult for traders since global growth concerns and uncertainties about diverging monetary policies cloud the overall outlook. This uncertainty leads to risk-aversion,which can be seen in volatile but unsteady market swings. Both of our major pairs were lacking a clear direction yesterday and ended the trading day unchanged against the U.S. dollar. This meant that traders had to struggle with fake-outs and still have to be patient and wait for better market conditions.

Let’s have a look at the technical side:

EUR/USD

The euro was the worst performing currency recently and failed to provide profitable chances. On a monthly basis we see that the pair peaked at a high of 1.1460, but most of the period, it remained trading sideways between 1.1330 and 1.11. Those who are looking for long-term entries, should focus on the area above 1.1460/65 for buy orders and on the area below 1.10 for sell orders. For short-term investments, we still consider the 1.1280 level as an opportunity to buy the euro towards 1.1320/50. Short-entries, however, could be interesting below 1.1190 and below 1.1080. Remember that there is a key support at 1.1020.

Chart_EUR_USD_Daily_snapshot30.9.15

Today traders should watch the German Unemployment numbers, due for release at 7:55 GMT and the Eurozone CPI report, scheduled for release at 9:00 GMT.

GBP/USD

The British pound weakened eight consecutive trading days but found a slight support around 1.5130. The trend is our friend and we should bear in mind, that GBP may be vulnerable to further losses, but there could be a lower support area at around 1.5110 – 1.5090. If sterling declines significantly below 1.5130, we will focus on the 1.51-level, which could prompt the currency for a recovery. However, above 1.5210, chances are that sterling bulls drive the cable towards 1.5250 and 1.5285.

U.K. Gross Domestic Product is scheduled for release at 8:30 GMT today.

Chart_GBP_USD_4Hours_snapshot30.9.15

The most important piece of economic U.S. data will be the release of ADP’s employment change report (12:15 GMT). Market participants pay close attention to this report as it is considered to be a leading indicator for nonfarm payrolls.

Furthermore, FOMC members Yellen and Bullard are scheduled to speak on Community Banking today at 19:00 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 2015 Maimar-FX.

www.maimar.co