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Demand For U.S. Dollar Could Strengthen in the Days Ahead

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Welcome everyone to a new trading month.

The U.S. dollar dipped this morning after Friday’s appreciation and Treasury yields stabilized following last week’s rally. Traders will likely continue paying attention to the recent bond selloff and corresponding surge in yields. We bear in mind that if the bond selloff grows more aggressive, the risk sentiment deteriorates even further which is buoying the demand for the greenback.

Looking to the week ahead we will have the February U.S. employment report due on Friday. On Thursday, Fed Chair Jerome Powell is scheduled to discuss the economy at a Wall Street Journal event.

The greenback experienced its best week in about four months and this renewed strength could even continue in the days ahead. Meanwhile, the U.S. House of Representatives passed President Joe Biden’s $1.9 trillion Covid-relief package and investors begin to price in an unwinding of loose monetary policy in the long run. Friday’s latest non-farm payrolls report could come in with a better-than-expected result with the focus on average hourly earnings.

While the U.S. dollar’s fundamental forecast is bullish, we will keep tabs on the technical picture in the GBP/USD and EUR/USD.

GBP/USD

The British pound experienced a long-needed correction after it rejected the 1.42-handle but bearish momentum ebbed after Friday’s dip below 1.39 proved short-lived. We now wait for another decline below 1.39 in order to mark lower targets at 1.3850 and 1.38. A lower resistance could now come in at 1.4120 and as long as the currency pair remains below 1.41 chances are in favor of the bears.

EUR/USD

The euro corrected its gains after a test of 1.2243 and it will be interesting whether sentiment could change in favor of the bears after a break below 1.2050. Lower targets are seen at 1.1960 and 1.19. Bulls in this pair should again wait for a break above 1.2185 but more importantly above 1.2230 in order to buy euros towards 1.23.

DAX

The index declined in tandem with the last week’s bond selloff but rebounded at the beginning of this week and is currently holding above 13800. As long as the DAX remains below the crucial price level of 14000, we will shift our focus to a lower target at 13600. A break above 14040 could however pave the way for a renewed test of 14150 and possibly even for a bullish breakout above 14200.

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Investors Look Past Violence in Washington, Focus Turns to NFP Data

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Investors have mostly looked past the violence in Washington as they concentrate on the prospect for more economic stimulus and the likelihood that calm will prevail as Joe Biden takes the presidency.

The U.S. dollar steadied after accelerating against its major peers Thursday.

Today, all eyes will turn to the release of the nonfarm payrolls report at 13:30 UTC. The U.S. jobs report is forecast to show a sharp slowdown in hiring. While a softer release is normally dollar-negative, the impact now depends on the overall positive prevailing mood in the market since market participants have looked past weak data throughout last year.

 

The DAX surpassed the 14000 mark and more gains could be in play. A next target is 14250 but bear in mind that the market is never straight-lined, which is why the index could first test the 14000-level as a new support before we see another leg up.

We wish you good trades and a peaceful weekend!

We wish you good trades!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2021 MaiMarFX.

www.maimar.co

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Will Payrolls Hurt Or Help The U.S. Dollar?

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Dear Traders,

While Thursday proved to be a volatile trading day, the volatile but choppy swings in the market were not to our liking. Entries were triggered and stopped out due to heightened volatility but there was little follow-through on either side.

The U.S. dollar gained traction ahead of yesterday’s FOMC minutes but the statement did not alter rate hike expectations. While the Fed saw gradual rate hikes as needed given a very strong U.S. economy, some Fed members are concerned about intensified risks around trade policy.

The focus now shifts to the U.S. NFP report scheduled for release at 12:30 UTC.

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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

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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.

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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.

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Lack Of Direction Ahead Of NFP Report

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Dear Traders,

Both of our major currency pairs have shown a lack of direction in the first trading week of April. In other words, there was no or only little profit for day traders of the EUR/USD and GBP/USD and while we were looking for profitable trading opportunities we were disappointed by directionless and limited swings. However, with the GBP/USD holding above 1.40 the longer-term bullish trend remains attractive- at least for the time being.

EUR/USD

The euro continues to trade within its near-term range between 1.2350 and 1.2250. Traders should pay attention to price breaks either above 1.2360 or below 1.2235. However, we may have to wait until tomorrow’s payrolls to see more meaningful movements in the market.

Currently we see the price fluctuating within a symmetrical triangle since prices narrowed. A break below 1.2260 could spark bearish momentum towards 1.22, provided that the 1.2250-barrier gives way to the bears. Those that are looking for profitable long entries should rather wait for the price to exceed 1.23.

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

U.S. Dollar Weaker Ahead Of NFP Report

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Dear Traders,

The euro extended its gains and headed towards 1.21 on the back of a weakening U.S. dollar. Our long entry has thus proved profitable. As stated in our yesterday’s analysis, we now expect the EUR/USD to test the 1.2130/50 area. A current support is however seen at the 1.20-barrier.

The British advanced against the greenback after the 1.35-support proved intact. We now expect a next resistance to come in at around 1.3650/60. If the pound, however, falls back below 1.3490, it may extend its slide towards 1.3450.

Today’s focus will turn to the U.S. Nonfarm Payrolls, scheduled for release at 13:30 UTC. The jobs report is projected to show 190K jobs in December while yesterday’s ADP report exceeded expectations, signaling continued momentum in the U.S. economy.

We wish you a nice weekend.

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

 

USD Steady Ahead Of NFP Report

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Dear Traders,

The British pound further weakened and we got what we were looking for in yesterday’s analysis: a breakout of a symmetrical triangle even if it was a relatively small bearish breakout with losses being limited to a low of 1.3357. If the pound remains below 1.34 we expect further bearish momentum driving GBP/USD towards 1.33. For the short-term bias to shift from bearish to slightly bullish it would need a sustained break above 1.35. A higher target would then be at 1.3650.

There was little movement in the EUR/USD Wednesday while none of our entries was triggered. The euro dropped below 1.18 but found some halt at 1.1780. Whether we will see further losses towards 1.17 remains to be seen and hinges on the risk appetite for dollars ahead of tomorrow’s NFP report. For bullish momentum to accelerate it would require a break above 1.1920.

ECB President Mario Draghi will hold a press conference as Chair of the Group of Governors and Head of Supervision (GHOS) today at 16:00 UTC. If he touches on monetary policy the euro could respond with some volatile swings.

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