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NFP Data To Spur USD Strength?

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Dear Traders,

Global trade war fears are back in focus after news that the Trump administration was pursuing the metal tariffs against the EU, Canada and Mexico. While the news has led to a slide in the S&P 500 and Dow, the U.S. dollar received only little attention. The greenback is still seen as the top reserve currency but whether it can hold that title in the future remains an open question.

The euro received a slight boost from updates from Italy that an election is basically off the table. The Italian Five-Star Movement and the League parties have reached a new agreement on a possible coalition government. Prime Minister Giuseppe Conte accepted an offer to form a new government with the Eurosceptic Paolo Savona who has been named as EU affairs minister.

Today, all eyes will turn to the U.S. Non-Farm Payrolls report due at 12:30 UTC.  The U.S. economy is expected to have added 190K jobs in May while wages are expected to post modest upticks. An upside surprise in any headline figure of the report could spur the dollar’s strength.

We wish you good trades and a relaxing weekend.

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Risk Aversion Leads To EUR And GBP Sell-Off

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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:

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We wish you good trades and many pips!

Any and all liability of the author is excluded.

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Euro Drops On Italy Concerns

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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 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

 

 

 

Euro Paradoxically Rallied Despite Political Risks

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Dear Traders,

It was a paradox: The euro shrugged off political risks from Italy and rallied towards 1.08 amidst political uncertainties in Europe. The short squeeze in the EUR/USD can be explained by profit taking after the euro rejected to extend its losses beyond 1.05. However, given the anti-establishment mood sweeping around the world we doubt that the euro can hold onto its recent gains. Thus, dollar bulls may jump in again and take this opportunity to sell EUR/USD at higher levels. Nevertheless, we will also discuss a potential bullish scenario.

If the euro rises above 1.08, traders will be asking “How high the euro might go?”. So let’s try to figure it out.

EUR/USD

Given the impressive bull candle in the daily chart, we might see further upward movement before the euro reverses. In short-term time frames a next resistance could be at 1.0830/50, followed by a stronger resistance zone at 1.0950. If the euro takes the next hurdle at 1.0830, chances increase that it heads for a test of 1.0960. Above 1.0970 however, the euro may rises towards 1.1030 and perhaps even towards 1.11. Current supports are however seen at 1.0650 and 1.06.

chart_eur_usd_daily_snapshot6-12-16

GBP/USD

The cable is still on the rise but we expect gains to be limited until 1.2760 and 1.28. A significant break above 1.28 may drive the pair towards 1.2860 but then we may see some pullbacks. Crucial supports are seen at 1.26 and 1.25, which is why sterling bears should rather wait for a break below 1.2480.

chart_gbp_usd_daily_snapshot6-12-16

 

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