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Muted Market Conditions As Meaningful Event Risks Lack

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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)

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 2017 Maimar-FX.

www.maimar.co

 

 

 

Trendless And Volatile Price Swings Are A Torment For Traders

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Dear Traders,

We can say that yesterday was a black day for day traders with both major currency pairs fluctuating directionless sideways, wiping out monthly profits. The worst performer was the cable, which was on a roller coaster after the highest U.K. court ruled the government needs parliamentary vote to trigger the countdown to Brexit. While that decision soften the government’s Brexit plans, it was not enough to push the pound toward higher price levels. In contrast, the pound responded with a slide towards 1.24 due to the fact that Scotland, Wales and Northern Ireland did not need to have a say before talks are triggered. This should be some comfort to Prime Minister Theresa May. For traders however, yesterday’s price action proved to be anything but profitable and amidst a high volatile trading environment we had to struggle with false breakouts and choppy price swings.

The GBP/USD still faces a hurdle at 1.2545 and once that barrier is breached on the upside we may see further gains towards 1.2590/1.26. If the pound falls however back below 1.2490 we anticipate further losses towards 1.2415 and possibly even 1.2380.

There are no major important economic reports scheduled for release today. Sterling traders may pay attention to a speech of Bank of England Governor Carney which is scheduled for 16:00 UTC.

The EUR/USD traded sideways between 1.0775 and 1.0720. In an already challenging market environment, characterized by uncertainty and volatility we had a bit of bad luck as our long entry was exactly triggered before the price reversed.

Is the euro formatting a head-shoulders pattern? In short-term time frames we see a higher likelihood of an upcoming bearish breakout provided that the euro falls below 1.0720 while it refrains to trade above the resistance area around 1.0765. Below 1.0720 it may fall towards 1.0680. Above 1.0765 the euro may extend its gains towards 1.0785/1.08.

The German Ifo Index is scheduled for release at 9:00 UTC and could have a short-term impact on the euro.

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

 

 

 

Thin Liquidity Before The Christmas Break?

/in /by

Dear Traders,

We are entering the final trading period of this year while financial markets are gradually becoming quiet.

Now that top-tier event risk is largely exhausted for the remaining trading days of 2016 we saw some corrective price action last Friday with some profit taking in the U.S. dollar. Nonetheless, there was nothing to be gained for us as currency fluctuations have been modest given the year-end liquidity drain. We recommend securing your monthly and annual profits now and trading at a low risk in the pre-holiday period.

From a technical perspective there is the possibility of further corrective movements in the dollar on the back of profit taking, driving the euro towards 1.0530 while the cable may tend to test the 1.2550-resistance level. Above 1.2570 the pound sterling may head for a test of 1.2650/80. A current support is however seen at around 1.2425.

The euro traded consolidated at around 1.0450 and if it holds above 1.0420 we may see a run for 1.0530. Below 1.04 however, we favor a bearish bias targeting at 1.03.

However we do not expect exaggerated movements within the next days and will take potential profits at smaller targets. The economic calendar is very light in terms of market moving data. The most interesting piece of data could be U.S. Durable Goods Orders alongside the final estimate of third-quarter GDP (Thursday), while the German IFO report scheduled for release today at 9:00 UTC could be worth watching for euro traders.

Furthermore, Fed Chair Janet Yellen speaks on the state of the job market today at 18:30 UTC.

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

 

 

 

Quiet Trading On Thanksgiving?

/in /by

Dear Traders,

The FOMC minutes did not provide any new insights but did confirm the market’s assumption that a December rate hike should be a done deal. The minutes showed that Federal Reserve officials saw a strengthening case to raise interest rates as the labor market improved ‘appreciably’, with some saying a hike should take place next month. The U.S. dollar extended its gains versus the euro while the common currency fell to a fresh one-year low.

As stated in yesterday’s analysis, we now see next support levels at 1.0520 and 1.0470 and if these barriers fall, the next stop could be at parity. A current resistance is however seen at 1.06.

U.S. markets will be closed for Thanksgiving, which is why we expect market movements to be limited amid a low liquidity environment. Let’s see.

The only piece of economic data will be the German IFO index due at 9:00 UTC, which could have a minor impact on the euro.

The British pound remains the only major currency to outperform the U.S. dollar and traded resiliently between 1.2470 and 1.2360. Sterling traders were looking in vain for any profitable movements and so we had to record some losses after three failed sell attempts. However, the technical picture has not changed and we still wait for a break of 1.2515 or 1.2350 respectively.

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

Fed To Pave The Way For Renewed Dollar Strength?

/in /by

Dear Traders,

We welcome you to a new trading week which promises to be an interesting one with the Federal Reserve meeting and plenty of economic news scheduled for release throughout the entire week. While the economic calendar includes plenty of important news, such as first-quarter GDP numbers from the U.S., U.K. and the Eurozone, the main focus will be on the FOMC statement and the Fed’s plan to raise interest rates twice this year. The Fed is not expected to change monetary policy this month but market participants are eager to learn whether policy makers changed their outlook for rate increases in 2016 or maintain their hawkish policy stance.

Accordingly, the U.S. dollar will be back in focus this week and should determine the direction in both EUR/USD and GBP/USD. Apart from the FOMC meeting, traders will be watching Gross Domestic Product reports and German Unemployment numbers, scheduled for release on Thursday and Friday. The euro dropped as low as 1.1220 on Friday, confirming our presumption of renewed bearish momentum although euro bears have been fooled by the final upswing towards 1.14 before a reversal occurred. The euro would now need to break below 1.1190 in order to revive fresh bearish momentum towards 1.1150 and 1.1080. We expect the 1.1150 and 1.1080/70-levels to lend a crucial support to the EUR/USD before the focus shifts to a break of 1.1050 and 1.10. On the upside, possible resistance levels are currently seen at 1.13, 1.1335 and 1.1360.

GBP/USD

The most important piece of U.K. data will be GDP numbers due for release on Wednesday. Taking a look at the daily chart we see sterling trading within an uptrend channel approaching important resistance levels. The next crucial resistance level is at 1.45, from where sterling will have the opportunity to start a decline. If the pair is able to break above 1.4515, next resistances are seen at 1.4560 and 1.46. As we generally maintain a bearish stance in this pair, we are looking for resistance levels which could cap on gains in the British pound. A current support-zone is seen at 1.43 – 1.4285.

Chart_GBP_USD_Daily_snapshot25.4.16

This week starts off with the German IFO Index, due at 8:00 UTC today, a report which could have a short-term effect on the euro. Furthermore U.S. New Home Sales are scheduled for release at 14:00 UTC.

We wish everyone many profitable trades and a nice week.

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 2016 Maimar-FX.

www.maimar.co

 

 

 

Low Volatility Fails To Provide Profitable Environment For Traders

/in /by

Dear Traders,

There was little movement in the finical markets with the euro and British pound being uninfluenced by any hawkish Fed speak and U.S. economic data. Despite hawkish comments from Atlanta Fed President Dennis Lockhart and San Francisco President John Williams saying that recent economic data may justify additional policy tightening there was no appetite for U.S. dollars. Neither did weaker U.S. existing home sales numbers affect the greenback negatively.

Volatility has been very high during the last two weeks and many investors and day traders have locked up a good profit which is why many investors prematurely went on vacation or now refrain from taking any positions ahead of the Easter holidays. This week we expect volatility to remain moderate with traded volumes being subdued. Traders should therefore not expect too much and take profits at smaller targets.

The EUR/USD refrained from trading below the 1.1230-level but does not seem to favor the upward trend, either. A current resistance is seen at 1.1285, whereas short-traders should pay close attention to a break of the 1.1220-1.12 support. The German IFO and ZEW surveys are due for release today and forecasts point to an increased confidence. Positive numbers may lend support to the euro’s bullish bias.

Trading the GBP/USD yesterday has offered us nothing but losses. The cable marked a recent support at around 1.4360 whereas upward movements were limited until 1.4430. We see next important support levels at 1.4335 and 1.4310 which have to be breached in order to reinvigorate fresh bearish momentum. U.K. Consumer Prices are due for release at 9:30 GMT and if data provides a positive surprise we could see sterling strengthening towards 1.4450 and 1.45.

9:00 EUR German IFO Business Climate

9:30 UK Consumer Prices

10:00 EUR German ZEW Survey

13:45 USA Markit Manufacturing PMI 

(Time zone 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 2016 Maimar-FX.

www.maimar.co

 

 

 

Bearish Bias On GBP/USD And EUR/USD

/in /by

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:

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

 

 

 

Dollar due for a correction?

/in /by

Dear Traders,

Euro traders needed to be persistent and enter our long-entry several times, in order to gain the final profit. Before Draghi’s testimony in Brussels yesterday, euro bears tried to put pressure on the currency pair but finally failed when Draghi sounded slightly more optimistic. While he repeated the view that the European Central Bank is willing to bolster its bond-buying program if more stimulus is needed, he said that it is too early to judge whether expanding purchases would be appropriate. The ECB president said that more time is needed to determine whether risks to the economic outlook warrant a step-up in the ECB’s stimulus.

The euro reacted positively on his comments and tested the 1.12-level. Whether we will see more upward momentum, remains to be seen. With a break above 1.1220 we see chances that the euro could climb to 1.13.

The British Pound knows currently only one direction: Downwards. The support at 1.5220 proved to be stable for the time being. Bear in mind, that below 1.5220 there is no support until 1.5165. Above 1.5265 we may see a correction until 1.53 and 1.5340.

Today, the most important piece of economic data is coming from the USA with Durable Goods Orders, scheduled for release at 12:30 GMT. Furthermore, New Home Sales at 14:00 GMT and the speech of Fed-chair Janet Yellen at 21:00 GMT could have an impact on the U.S. dollar.

Interesting data from the eurozone and the U.K.:

8:00 EUR German IFO Index

8:30 UK Loans for House purchase

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

 

 

 

Solution for Greece today?

/in /by

Dear Traders,

The U.S. dollar recovered on an overall positive dollar sentiment. Hawkish comments from FOMC member Powell saying that a first rate hike could come as soon as September, with a second move to follow in December, led further support to the greenback. The market is now shifting again its focus more towards the Fed and a liftoff in September, preferring to be long U.S. dollars rather than euros.

The euro remained weak even as optimism grows that Greece will avert default. Despite the the fact that a deal appeared within reach, a main reason for the decline in the euro is, that the currency became attractive as a funding currency. Eurozone finance ministers will meet again today to try to reach a final agreement to unlock aid.

The pound sterling slid below 1.58 and found a current support slightly above the 1.57-level. The up-trend is still intact. A break above 1.5835 could revive sterling’s strength whereas a significant break below 1.57 could drive the pair towards 1.5630.

The German Ifo Business Climate which is due for release today at 8:00 GMT and later the final Q1 U.S. GDP reading scheduled for release at 12:30 GMT, could be important reports to watch.

Euro-area finance minister’s talks will start today at 7 p.m. in Brussels.

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