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EUR/USD Falls Below 1.08

The U.S. dollar gained across the board after Nonfarm payrolls data on Friday surpassed even the most optimistic of estimates showing a strong U.S. labor market. The fact that the unemployment rate rose to 4 percent appeared to fade into the background as it was not notable enough to detract from the rosy jobs and wage data. Markets therefore scaled back bets on a Federal Reserve September rate cut.

This week, the focus turns to the Federal Reserve meeting on Wednesday, where the central bank is likely to keep interest rates unchanged. However, market participants will closely watch any hints on when the Fed plans to begin cutting rates. In addition, U.S. inflation data is also due on Wednesday. Inflation remains sticky and this fact has been the Fed’s biggest consideration in altering interest rates.

As for the euro, increased political uncertainty in Europe, after voting across the European Union showed a clear shift towards right-wing and far-right parties, could also potentially dent sentiment. The EUR/USD opened today below 1.08. Dipping below 1.0760 could lead to a steeper fall and a next lower target at 1.0725.

 

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Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.

We wish you good trades!

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Quiet Week Before The Easter Holidays?

After markets had a few days to digest last week’s dovish FOMC meeting, where the Federal Reserve continued to signal three rate cuts in 2024, even though fresh forecasts pointed to slightly hotter inflation. The message behind last week’s decision is that the Fed seems willing to let inflation run hot for longer, to minimize the risk of a recession.

However, the U.S. dollar’s counterparts encountered their own problems and gave up their lofty gains while the greenback managed to recover previous losses. The pound fell sharply after the Bank of England softly opened the door for a summer rate cut.

GBP/USD

The pound crushed into reality and below 1.26 after it was flirting with the lofty 1.29-barrier. It will now be interesting whether daily candles close below 1.26 (blue EMA), since this would point to a fresh downtrend. Given that this week will be accompanied by low volatility, we expect that the pair will trade in tight ranges. A next resistance comes in at around 1.2650, followed by 1.2720. However, bearish candles suggest more downside momentum to come.

EUR/USD

The euro remains within its sideways trading range but recently tilts to the downside. Remaining below 1.0850 would turn the focus to the lower 1.07-target.

DAX – Is everything right with the high-flyer?

With a chart like this, we can only express our doubts that this steep uptrend will continue. What do you think?

 

This week will be quiet in terms of market-moving data. The only interesting piece of data will be the PCE price index, due for release on Friday. Friday, however, will be a public holiday, so liquidity is expected to be thin.

 

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If you are keen to know where we put Take-Profit and Stop-Loss, if we trade on a specific day or not and how we manage open positions, subscribe to our signals.

Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.

We wish you good trades!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2024 MaiMarFX.

Wie geht es nach der jüngsten Runde der Dollarstärke weiter?

Der am Freitag veröffentlichte NFP-Bericht zeigt, dass sich der US-Arbeitsmarkt in guter Verfassung befindet: Im Januar wurden 353.000 neue Stellen geschaffen, während die Erwartungen bei nur 180.000 lagen. Nach diesen guten Arbeitsmarktzahlen schraubten Händler die Erwartungen an eine Zinssenkung der Federal Reserve zurück, während eine Zinssenkung im März derzeit vom Tisch ist.

Der US-Dollar legte als Reaktion auf den NFP-Bericht vom Freitag stark zu und bescherte Short-Händlern sowohl im EUR/USD als auch im GBP/USD gute Gewinne.

Im Vergleich zur letzten Woche ist der Wirtschaftskalender in dieser Woche, was potenziell marktbewegende Daten und Risikoereignisse angeht, dünn gesät. Händler sollten sich daher auf schwankende Kurse und kleinere Gewinne einstellen.

Der EUR/USD ist unter 1,0790 und weiter in Richtung 1,0760 gerutscht, aber wir gehen davon aus, dass eine kurzfristige Unterstützung bei etwa 1,0750 zu erwarten ist, weshalb die Bullen einen Test des Bereichs um 1,0860 anstreben könnten. Ein Unterschreiten von 1,0740 könnte hingegen zu einem Ausverkauf in Richtung 1,0660 führen.

Der GBP/USD bewegt sich weiterhin innerhalb der Seitwärtsspanne zwischen 1,28 und 1,26. Auf der Suche nach Short-Einstiegen warten wir auf Kursdurchbrüche unter 1,2590 mit einem tieferen Ziel bei etwa 1,2560 und weiter auf einen Rückgang unter 1,2540 mit einem nächsten Ziel bei 1,25. Auf der Oberseite wird derzeit ein Widerstand bei 1,2750 gesehen.

 

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After Fed Focus Shifts To Friday’s NFP Data

Large swings were absent yesterday when the Federal Reserve failed to send a dovish signal, signaling only that it is not yet ready to ease its policy stance imminently. Thus, a rate cut in March is still possible but the likelihood of this early cut appears to be slim at the moment.

Expectations in terms of rate cuts could however change as soon as tomorrow, when the U.S. Nonfarm payrolls report is scheduled to be released. If job growth surprises to the downside, a March rate cut could be back on the table, which would weaken the U.S. dollar. Conversely, if NFP numbers are stronger-than-forecast, the greenback will rise on an unwinding of dovish bets.

Let’s wait and see.

Daily Forex and DAX Signals:

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DAX® (GER40)

Long @ 16840

Short @ 16780

Settings for all trades today: Entries from 8:00 am UTC, SL 25, TP 100

Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.

 

We wish you good trades!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2024 MaiMarFX.

www.maimar.co

 

All Eyes On The Fed

Very little movement was seen in both pairs EUR/USD and GBP/USD in the beginning of the week and before the FOMC meeting. In the euro we currently focus on a trading range between 1.08 and 1.06 while in the cable it will be interesting whether the pound also drops below 1.2330 and further towards 1.23. On the upside, resistance is seen at around 1.2550.

Today is Federal Reserve decision day and it is widely expected that the central bank will pause rate hikes. Instead, the focus will be on fresh economic projections and the dot plot forecast and whether another 2023 hike is in the cards. Traders expect that the Fed’s tightening campaign has ended. Thus, the U.S. dollar will rise if there are signals for further tightening, triggering a hawkish repricing of rate expectations.

The Fed decision and release of economic projections is scheduled for 18:00 UTC followed by the press conference 30 minutes later.

Daily Forex and DAX Signals:

If you are keen to know where we put Take-Profit and Stop-Loss, if we trade on a specific day or not and how we manage open positions, subscribe to our signals.

Our trading ideas for today 20/9/23:

EUR/USD

Long @ 1.0715

Short @ 1.0660

GBP/USD

Long @ 1.2435

Short @ 1.2330

DAX® (GER40)

Long @ 15740

Short @ 15640

Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.

We wish you good trades!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2023 MaiMarFX.

www.maimar.co

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Euro: The Longest Losing Streak Since 1997

The euro confirmed a 9th consecutive weekly loss, the longest losing streak since 1997.

The common currency dropped like a stone towards 1.0630 after the European Central Bank raised interest rates last Thursday but there were signs that rates had peaked. Recession risk and worsening sentiment indicators in Germany fuel arguments against further hikes.

Looking at the weekly chart we see, that despite the euro’s steep fall, it remains still above the crucial support area around 1.05. Given the recent bearish strength we could imagine that the pair tests the 1.06-level before a pullback towards 1.08 is in the cards. However, the U.S. dollar will play a major role this week, so traders will likely wait for the Fed decision before deciding which way to go.

EUR/USD

This week is again loaded with event risk, including multiple central bank decisions. We will focus on the Federal Reserve rate decision Wednesday and while the Fed is widely expected to leave rates unchanged this month, traders access the prospects of a further hike by the end of this year.

The Bank of England is expected to deliver a 25bp rate hike on Thursday. In case of a dovish hike or more precisely, if the BoE give a hint that rates are near their peak, the pound sterling will fall.

Daily Forex and DAX Signals:

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Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.

We wish you good trades!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2023 MaiMarFX.

www.maimar.co

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EUR/USD And GBP/USD: Further Losses Ahead?

Welcome to a new trading week.

Last week ended with a trend reversal in many currency pairs as market participants rushed to reprice the U.S. dollar’s low price level following the big nonfarm payrolls number. The NFP report last Friday came in as a big surprise with 517k new jobs last month. This rosy labor market data forced the market to curb its push against the Federal Reserve’s credibility, pushing the greenback higher.

The dust settled after last week’s high impact data releases and given the quiet economic outlook this week, we may see some follow through of the fresh trends.

EUR/USD – Entering the support area

After the euro has tested the upper ascending trendline at 1.1030, euro bulls were not able to hold that high level and fell victim to a fresh round of dollar strength. It will now be interesting whether the support area between 1.08 and 1.07 holds. From here we may see another bullish attempt to push to the euro back towards 1.09. However, given the reversal’s strength we prepare for further losses and keep tabs on a potential break below 1.07.

GBP/USD – Double-top pattern following the price cap at 1.2450?

For the double-top pattern to be played out we would need to see a significant break below 1.1840 and further 1.1750. A lower target could then be at around 1.15.

 

Daily Forex and DAX Signals:

If you are keen to know where we put Take-Profit and Stop-Loss, if we trade on a specific day or not and how we manage open positions, subscribe to our signals.

Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.

All Eyes On The Fed

Today, the Federal Reserve’s first policy announcement of 2023 is due (19:00 UTC).

The markets are confident that the Fed will slow the pace of tightening from a 50bp increase to a 25bp rate hike. Given the market’s certitude, there is room for disappointment and thus for volatility in case of a repricing. The focus will also be on the duration of the rate hike regime. The market expects only one more rate hike in March, which would lift the terminal rate to a range of 4.75-5.00 percent. The Fed itself, however, projected a terminal rate range of 5.00-5.25 percent. Volatility lies thus within this disagreement.

Let’s be surprised. We wish you good trades for today!

Daily Forex and DAX Signals:

If you are keen to know where we put Take-Profit and Stop-Loss, if we trade on a specific day or not and how we manage open positions, subscribe to our signals.

We wish you good trades!

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www.maimar.co

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Price Action Leaves Much To Be Desired

This was definitely not the volatility what would be expected from the last large risk event of the year. The price action in the U.S. dollar was noticeably more constrained and there was no traction following the event.

Overall, yesterday’s outcome was in-line with expectations, even though Fed chair Jerome Powell warned the Fed is not close to ending its anti-inflation campaign of rate hikes while saying “we still have some ways o go”. In terms of terminal rates, policymakers projected rates would end next year at 5.1 percent before being cut to 4.1 percent in 2024 (see dot plot). Even though these are higher levels than previously indicated, the market didn’t see reason for a repricing.

The focus now shifts to the Bank of England and European Central bank decisions.

Both central banks are expected to announce a 50bp rate hike today. The BoE is expected to have further to run before hitting its own terminal in 2023 compared to its US counterpart while as for the ECB, there seems more potential for further tightening into 2023. with recession risks remarkably high for Europe and the rest of the world combatting inflation more aggressively, the Eurozone’s policy authority may find it reasonable to tapering its efforts with a lower terminal rate.

EUR/USD: The euro finds itself within the resistance zone between 1.06 and 1.08. The technical outlook has not noticeably changed which is why we still focus on price breakouts either above 1.08 or below 1.0350.

GBP/USD: The cable’s recent upward channel is still intact, showing a price range between 1.25 and 1.2150.

Given the December liquidity drain around the holiday, we do not expect to see larger movements after traction was all but absent even yesterday.

Daily Forex and DAX Signals:

If you are keen to know where we put Take-Profit and Stop-Loss, if we trade on a specific day or not and how we manage open positions, subscribe to our signals.

We wish you good trades!

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Dovish Tilt

The U.S. dollar sold-off after Federal Reserve Chair Jerome Powell signaled the central bank will slow the pace of interest rate increases this month. Following four straight 75bp rate hikes, the Fed is expected to raise rates by 50bp when they meet December 13-14.

Even if Powell reiterated that rates will be going higher, the slowdown in the Fed’s rate hike path was interpreted as a dovish tilt by markets.

Regarding rate hikes, “we think that slowing down at this point is a good way to balance the risks” to the economy from inflation and slower growth, Powell said. As for the high inflation Powell added that “despite the tighter policy and slower growth over the past year, we have not seen clear progress on slowing inflation.”

Today, traders will pay attention to the PCE index due for release at 13:30 UTC.

From a technical view it seems as if there is room for another upward movement in both EUR/USD and GBP/USD.

EUR/USD: Higher targets are seen at 1.05 and 1.0580 while 1.03 could act as a support.

GBP/USD: Above 1.19, we favor the uptrend with a next target at 1.2250.

Our trading ideas for today 1/12/22:

EUR/USD

Long @ 1.0475

Short @ 1.0440*

GBP/USD

Long @ 1.2125

Short @ 1.2085*

DAX® (GER40)

Long @ 14580

Short @ 14470

Settings for all trades today: Entries from 8:00 am UTC, SL 25, TP 40

Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.

We wish you good trades!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2022 MaiMarFX.

www.maimar.co

Follow us on social media:

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Instagram