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USD Remains Weak, EUR And GBP With a Slight Tailwind

Good morning everyone!

The U.S. dollar remained under pressure amid optimism about progress on stimulus talks in Washington. White House Speaker Nancy Pelosi said she is hopeful for a stimulus agreement this week which would be bigger, better and retroactive. However, with the U.S. election looming the dollar’s fate will mainly hinge on the election outcome.

Looking ahead to the European Central Bank meeting next Thursday ECB President Christine Lagarde said the unexpectedly early pickup in coronavirus infections is a “clear risk” to the economic outlook, which could be a sign that policy makers are preparing for more monetary stimulus. Investors largely expect the ECB to wait until December before boosting its 1.35 trillion-euro pandemic bond-buying program. Updated projections for growth and inflation that could justify more action will be announced at the ECB meeting in December.

As anticipated in yesterday’s analysis, the EUR/USD broke its narrow price range and could now be heading toward 1.1880 or even 1.1915, provided that the 1.1850-level gives way to further bullish momentum in this pair.

The picture was completely different in the GBP/USD, which consolidated between 1.2980 and 1.2910 Tuesday.

 

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U.S. Inflation data In Focus

Dear traders,

Monday’s trading was quiet with the U.S. dollar slightly appreciating versus its peers but without any profitable trading chances. Volatility was also muted due to a public holiday in the U.S. Monday, so let’s see what Tuesday brings.

We will keep an eye on the U.S. inflation rate release today at 12:30 UTC.

Investors weigh a potential setback on progress toward a coronavirus vaccine after a report that Johnson & Johnson’s Covid-19 vaccine study has been paused due to an unexplained illness in a participant. Any delay in the Covid-19 vaccine progress is generally considered dollar positive.

The uncertainty around the U.S. election and uncertainty about the timing and effectiveness of a vaccine will be the main market movers.

EUR/USD: Resistance is currently seen at 1.18 whereas the pair may find a short-term support at 1.1770.

GBP/USD: Cable has a strong support-zone between 1.30-1.2950. For accelerated bullish momentum we will need to see the pair trading above 1.3070 with a higher target at 1.3115.

DAX: If the index falls back below 13050, we may see a dip towards 13000. Remaining above 13100 higher targets could be at 13220.

 

We wish you good trades!

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Copyright © All Rights Reserved 2020 MaiMarFX.

www.maimar.co

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ECB Meeting Unlikely To Move Euro Exchange Rate

Dear Traders,

It’s decision day at the European Central Bank today but whether this event risk carries much weight will depend on ECB President Mario Draghi’s comments at the ECB press conference. Traders are looking for hints on when interest rates will begin to rise but ECB policy makers suggested earlier that a rate hike won’t come at least until the end of summer 2019. If there is no change in guidance, the euro could give up some of its recent gains.

General speaking, it seems unlikely that Draghi intents to move the single currency at today’s meeting, so watch out for range-bound price action.

As for the dollar, the most interesting piece of data will be released tomorrow with the U.S. 2Q GDP.

EUR/USD: The next hurdle is now seen at 1.1750 before we turn our focus to the crucial resistance area between 1.18-1.1850. Looking however at larger time frames, the currency pair remains trading sideways between 1.1850 and 1.15.

 

Summer trading break: We are slowly preparing for our summer holiday break which means that we are reducing risk exposure while adopting a cautious approach.

Announcement: Shortly after the summer break our Chief Currency Strategist will commence her maternity leave, which is why daily analysis and signals will be paused until the end of her period of maternity leave.

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 2018 Maimar-FX.

www.maimar.co

 

GBP/USD Holds Above 1.30

Dear Traders,

Sellers in the GBP/USD remained in control after the U.K. CPI fell short of expectations. The soft inflation report is making a BoE rate hike next month less likely than previously expected. The pound tested the 1.3010-mark but was later able to stabilize above 1.3050. Higher resistances could now come in at 1.3150 and 1.3230. As long as the pound remains below 1.3230 we may see a dip towards 1.2950.

Sterling traders may keep an eye on U.K. Retail Sales today at 8:30 UTC.

For day traders of the EUR/USD there was nothing to gain Wednesday. The euro fell victim to a strengthening dollar but losses were limited to the 1.16-handle. As long as 1.16 holds we expect the pair to trade between 1.1720 and 1.1620.

Given the liquidity drain, traders should bear in mind that trading conditions could be challenging during the summer months. A proper risk management is therefore indispensable.

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 2018 Maimar-FX.

www.maimar.co

Quiet Trading

Dear Traders,

U.S. inflation data came in line with expectations whereupon the dollar gave up some of its gains. However, the greenback had a rather mixed day while it ended yesterday’s trading day virtually unchanged against the euro and British pound.

Generally speaking, it seems that many market participants refrain from taking any larger positions now amidst the liquidity drain during the summer months. Therefore, we recommend to trade at a low risk or stay at the sidelines as long as risk events are lacking.

The Fed will deliver its monetary policy report to Congress today at 15:00 UTC.

We wish you a wonderful weekend.

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 2018 Maimar-FX.

www.maimar.co

 

Risk-Off Mode In The Market

Dear Traders,

It seems that market participants are shying away from any risk right now.This risk aversion leads to unsteady and trendless markets with limited swings. Also, we have a U.S. market holiday on Wednesday which is why market participants may prefer to stay on the sidelines until Thursday. Thus, we didn’t see larger swings Monday with both EUR/USD and GBP/USD remaining confined to relatively tight trading ranges.

EUR/USD: Looking for short-term price breakouts, we are keeping tabs on a break either above 1.1680 on the upside or a break below 1.1570 on the downside.

GBP/USD: Looking for short-term price breakouts, we are keeping tabs on an upside break either above 1.32 or a downside break below 1.3090.

The only piece of economic data today will be the U.K. Construction PMI due at 8:30 UTC. From the U.S., we have Durable Goods Orders at 14:00 UTC but none of these reports is expected to trigger larger fluctuations in the market.

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 2018 Maimar-FX.

www.maimar.co

 

Euro Jumps On Migration Deal At EU Summit

Dear Traders,

There was nothing to gain for day traders on Thursday with the price action in both major currency pairs EUR/USD and GBP/USD remaining limited to a tight trading range. Rather, we suffered losses while trying to benefit from the choppy swings yesterday. The moderate market development can be attributed to lacking fundamental headlines, while the first day of the EU Leaders summit ended without a deal on migration issues. However, those that had a look at the market in today’s early trading hours may have wondered what happened to the euro which showed an impressive rise towards a high at 1.1666. News that EU leaders have reached a deal on migration at the summit spurred the euro’s bullish price action in early Asian trading. The euro jumped at the prospect of the deal defusing a dispute over how to share the burden of immigration within the EU.

EUR/USD: As stated in yesterday’s analysis, as long as the 1.15-support holds we expect the euro to test the 1.17-resistance and possibly even the 1.18-handle.

GBP/USD: The pound rose in tandem with the euro this morning but was unable to overcome the short-term resistance at 1.3130, at least until now. A break above 1.3130 could result in an upswing towards 1.3150/70 whereas a renewed break below 1.3060 could lead to a test of 1.30.

Today we will watch the U.K. GDP Report, due at 8:30 UTC, followed by the Eurozone Consumer Price Index (9:00 UTC) and the U.S. PCE Index (12:30 UTC).

Have a wonderful weekend.

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 2018 Maimar-FX.

www.maimar.co

 

 

Subdued Price Action

Dear Traders,

Trading was subdued on Monday with both major currency pairs fluctuating in tight ranges.

As expected, the euro recovered some of its losses towards 1.1650 after it failed to break below 1.1550. As mentioned in yesterday’s analysis, a near-term resistance is in the 1.1650-1.1720 region from where sellers in the EUR/USD may take the opportunity to sell euros at higher levels.

ECB President Draghi will deliver another speech today (8:00 UTC) at the ECB Forum in Sintra, Portugal.

The GBP/USD has shown little willingness to test the 1.32-level and finally headed towards 1.3280 this morning. A next hurdle could come in at 1.33 now, followed by 1.3420.

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 2018 Maimar-FX.

www.maimar.co

Risk Aversion Leads To EUR And GBP Sell-Off

Dear Traders,

The fragility of the European Union is back in the spotlight and there seems to be nothing that could stop the euro from falling. The euro broke below crucial support levels against the U.S. dollar and fell to the weakest level in ten months. Whether the euro will extend its tailspin towards 1.1420 or even 1.1350 remains to be seen and hinges on the risk aversion in the market. As soon as risk aversion gives way to a greater risk appetite, the euro may find the strength to recover some of its losses.

The same applied to the British pound, which fell victim to increased risk aversion in the market and dropped towards $1.32. As long as the cable remains below 1.33 we focus on a lower target at 1.3180/70. On the topside, we see a current resistance at 1.3350. For sterling bears, Tuesday has been a very profitable trading day with our short signal providing twice a good profit.

The focus now turns to U.S. data such as the GDP report, scheduled for release today at 12:30 UTC. Greater attention, however, will be paid to the U.S. NFP report Friday. Today’s ADP Employment Change (12:15 UTC) could provide a foretaste of what to expect on Friday.

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/

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 2018 Maimar-FX.

www.maimar.co

Euro Drops On Italy Concerns

Dear Traders,

The euro extended its bearish movement Wednesday. The euro’s recent weakness is, however, not only due to a strong U.S. dollar but also due to concerns about the political landscape in Italy. Signs that the far-right League and Five Star Movement parties could form a Eurosceptic, populist government in Italy have added to uncertainty in the euro area.

EUR/USD: The euro fell to a low of 1.1763 and if the currency pair is now unable to stabilize above 1.1850 we expect the downtrend to continue until 1.1720/1.1680. A current resistance is seen at around 1.1920.

GBP/USD: The British pound continued to trade within its slight downtrend channel ranging from 1.3590 to 1.3440. Recently, there wasn’t much to gain for day traders of the cable since the pair traded consolidated between 1.3620 and 1.3450. However, we hope for better trading conditions as soon as the pair breaks out of its tight trading range.

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/

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 2018 Maimar-FX.

www.maimar.co