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Next Targets To Watch Out For

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Dear Traders,

While the British Pound continued to weaken against the U.S. dollar, the euro tested the 1.08-barrier which lends a short-term support for the currency pair. The big question ahead the FOMC meeting next week is whether the euro will remain comfortable above this zone or will rapidly fall back towards 1.05. A Federal Reserve interest rate hike is priced into the market, which is why we expect downward pressure to be limited in the coming days. However, the odds are in favour of the USD and we will be looking for lower targets at 1.0750 in the EUR/USD and 1.5020/00 in the GBP/USD.

EUR/USD: Breaking below 1.0730 may prompt the EUR/USD for a test of 1.07/1.0690. Current resistances are seen at 1.0860 and 1.09. Euro bulls should be looking for a sustained break above 1.09 targeting higher levels at 1.0940.

GBP/USD: GBP is trending downwards but where could be a next stop? We consider the 1.50-mark as a crucial support for the pair. Once this level is breached to the downside, the next stop could be at 1.4950 and 1.4920. On the upper side, the 1.5080-level may act as a resistance for sterling. Above 1.51 a bullish target could be at 1.5150.

Important data for today which could impact on the currency pairs:

9:30 UK Industrial & Manufacturing Production

10:00 EUR Eurozone GDP

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Downward Pressure

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Dear Traders,

Yesterday’s price action was relatively muted after Paris attacks had only a small impact on the currency market. The overall sentiment is bearish as investors remain focused on expectations for a Federal Reserve liftoff as soon as next month, while the U.S. dollar also benefited from safe haven flows.

The euro broke below its low at 1.0674 and the trend is heading downward.

Here is where we see current resistances and supports:

  Resistances Supports
EUR/USD 1.0705

1.0750

1.0805

 

 1.0635-20

1.0575

1.0550

 

The most important piece of data from the eurozone will be the German and Eurozone ZEW Survey, due for release at 10:00 GMT. Even if data surprises to the upside, the market’s reaction could be muted as the recent attacks might have a negative impact on economic confidence.

The British Pound traded sideways, unimpressed by geopolitical developments. We expect volatility to increase with the release of U.K. Consumer Prices today at 9:30 GMT. If data is in line with expectations, the impact on the pound could be limited, but given the latest dovishness of the Bank of England, traders should generally favor a bearish bias. A next important support could be at 1.5135-25. Below 1.5125, a sustained break of 1.51 is needed to reinforce fresh bearish potential. Short-term resistances are seen at 1.5215 and 1.5245.

Furthermore, U.S. Consumer Prices are scheduled for release at 13:30 GMT today. Any major surprises should have a significant impact on the greenback.

Daily Forex 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 2015 Maimar-FX.

www.maimar.co

 

Wait-And-See Mode

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Dear Traders,

The market is still in a wait-and-see mode and larger movements are lacking. While the euro rose on the back of improvements in the European Central Bank’s lending report, the cable failed again to overcome its 1.55-hurdle.

The euro climbed to a high of 1.1387 after an ECB report showed that there is an improvement in the region’s lending conditions, diminishing prospects for additional monetary stimulus. Market participants fear that Draghi could probably sound less dovish at the ECB press conference tomorrow, since the report gives policymakers less cause for more QE.

Moreover, there were no new insights  from the Federal Reserve. Fed chair Yellen did not comment on the outlook for monetary policy when she made a statement yesterday.

There are no major economic reports scheduled for release today, so we shall have to wait until tomorrow when there are catalysts for more volatility. The only second-tier data is coming from the U.K. with public finances due for release at 8:30 GMT. Furthermore, BoE Governor Mark Carney is scheduled to speak today on the U.K.’s membership in the European Union at 17:00 GMT.

Daily Forex 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 2015 Maimar-FX.

www.maimar.co

 

 

 

Obedient Euro And Stubborn Cable

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Dear Traders,

The story is always the same: Whenever the euro increased its value too rapidly only because of speculation against the U.S. dollar, someone has to talk down the currency. This is what happened yesterday. European Central Bank member Ewald Nowotny said yesterday in Warsaw, that core inflation in the euro area is “clearly missing the ECB’s target”. He added that “…in my view it is quite obvious that in the current economic situation additional sets of instruments are necessary. These include structural measures”. His comments were perceived as a signal that the ECB could step-up more stimulus in the near-term. In response to the remarks, the euro bounced off the 1.15-level and weakened significantly against the U.S. Dollar.

In the end, the euro was re-balanced, falling back into its recent trading ranges below 1.14.

Moreover, the dollar received support from better than expected U.S. Consumer Prices.

It was not a good day for sterling traders. The British pound refused to trade above 1.55 and there was neither further bullish nor fresh bearish engagement in the GBP/USD. We had therefore to struggle with stop-losses without a profitable ending.

What is important for today?

Eurozone Consumer Prices are scheduled for release at 9:00 GMT today, which could have an impact on the EUR/USD.

Furthermore, traders should have an eye on today’s U.S. data. U.S. Industrial and Manufacturing Production are due for release at 13:15 GMT, followed by Michigan Confidence at 14:00 GMT.

We wish you a profitable trading day and a beautiful weekend.

Daily Forex 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 2015 Maimar-FX.

www.maimar.co

 

 

 

No big market moves

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Dear Traders,

Yesterday’s price action remained relatively moderate. The highly anticipated U.S. ISM index fell short of the forecast but failed to trigger big market moves. The British pound tested the area slightly above 1.5240 but sold off sharply in response to weaker U.K. PMI reports. The support zone around 1.5130/10 still remains intact for the time being. A break below 1.51 could drive the cable towards 1.5010.

The euro, however, offered some gains for both sides. After a test of 1.1290, the currency pair turned into an intraday downtrend. A current support can be found at 1.1170. Below that level we will turn our focus to the 1.11-mark again.

Today, there are only second-tier economic reports scheduled for release, which could have a limited impact on the currencies.

7:30 EUR Germany Construction PMI

12:30 USA Trade Balance

17:00 EUR ECB president Draghi speaks

21:30 USA Fed’s Williams speaks

(timezone: GMT)

Daily Forex 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 2015 Maimar-FX.

www.maimar.co

 

 

 

Dollar Strength Ahead of NFP-Report

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Dear Traders,

We welcome you to the trading month of October.

The euro declined against the greenback after consumer prices in the Eurozone turned negative for the first time in six months. The drop in the region’s inflation rate fuel arguments that the European Central Bank could step-up monetary stimulus.

Meanwhile, the U.S. dollar received support from a stronger than anticipated ADP employment report. The improving outlook for the labor market is among the Federal Reserves’s reasons to raise interest rates.

The pound sterling took a brief look above 1.5210 but was not able to maintain that level and headed for a test of 1.5110. As anticipated in yesterday’s analysis, the level around 1.5110 – 1.5090 may lend a support for the currency pair. We will wait and see.

Sterling traders should keep an eye on the U.K. PMI Manufacturing report, scheduled for release at 8:30 GMT. If data surprises to the upside, GBP could gain ground.

Furthermore, we will watch the release of the U.S. ISM Manufacturing index, due at 14:00 GMT.

Daily Forex 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 2015 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:

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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 2015 Maimar-FX.

www.maimar.co

 

 

 

U.K. Inflation Data

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Dear Traders,

While the U.S. dollar traded slightly higher against most of its major peers, fluctuations have been unsteady – particularly for EUR/USD traders it has been a tough day, characterized by loss-making fake-outs rather than profitable break-outs.

The British Pound dropped below 1.56 after peaking at higher levels within its current resistance zone. U.K. Consumer Prices are scheduled for release today at 8:30 GMT. Economists forecast that consumer prices stagnated in July for a second month. The Inflation Data is of major importance and we expect high volatility.

Furthermore, U.S. Building Permits and Housing starts are scheduled for release at 12:30 GMT today.

We wish you a profitable trading day.

Daily Forex 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 2015 Maimar-FX.

www.maimar.co

 

 

Is China’s Devaluation good or bad for the U.S. Dollar?

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Dear Traders,

The euro rallied as Greece reached an initial agreement with creditors on the terms of a third bailout. Euro-bulls were able to gain a nice profit until the current resistance around 1.1080.

The U.S. dollar got no major support from China’s Yuan devaluation.

While China’s move to devalue the currency by 1.9 percent raises doubts on the health of the world’s second-largest economy and generally leads to safe-haven flows into the U.S. dollar, the currency move could also pose a challenge for the Federal Reserve. One of the major concerns for the Fed is a strong U.S. dollar, which is holding inflation low. In a currency environment of an easier money path where other central banks are going to ease monetary policy in order to boost exports, it could be hard for the Fed to justify an interest rate hike this year. This fueled speculation the Fed’s actions could be pushed into 2016. With this in mind, the U.S. dollar could be vulnerable to further weakness in the near-term.

The British Pound traded sideways, accompanied by a slight downward tendency. The U.K. labor market report is due for release today at 8:30 GMT. Average Weekly Earnings are forecast to show a decline which could pose further downward momentum for the pound sterling.

The only piece of eurozone data today will be Industrial Production scheduled for release at 9:00 GMT.

Daily Forex 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 2015 Maimar-FX.

www.maimar.co