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Euro Drops Below $1.18

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Dear Traders,

The euro weakened against the U.S. dollar in the aftermath of the German election results while the important support area around 1.1830-1.18 remained unbroken until this morning. As mentioned in our yesterday’s analysis, for the bullish bias to diminish the euro must break below 1.1830/20, the neckline of a head-shoulders pattern that was formatted since late August. Below 1.1820 we will focus on a lower target at 1.1775, from where potential pullbacks may occur. A current resistance is however seen at 1.1990.

Today’s focus shifts to comments from central bank policy makers with most attention being paid to Fed Chair Yellen who is scheduled to speak on inflation, uncertainty and monetary policy at 16:45 UTC.

Elsewhere, the war of words between the U.S. and North Korea continues to pose a threat to the markets. While the market shrugs off escalating tensions between America and North Korea, the recent escalation in rhetoric raises risk of tactical missteps.

The British pound extended its recent slide against the greenback and fell to a low near 1.3430. The latest weakness phase of the pound can still be considered as consolidation within the overall uptrend but if GBP/USD falls below 1.3380 we anticipate further losses towards 1.3330 and possibly even 1.32. On the topside, we will wait for a break above 1.36 in order to focus on higher targets at 1.37.

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Forex Market Unfazed By North Korea Provocations

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Dear Traders,

There was not much to gain for daytraders yesterday or, more explicitly, the Forex market was unfazed by the developments on the North Korea front. Following North Korea’s nuclear test and latest provocative actions, there was an increasing demand for safe havens such as Gold but on the currency front, there was no clear trend on Monday. In recent times, markets generally tend to ignore large risks, rather, they are betting against them. Whether this behavior is an underestimation or the right preparation remains to be seen.

EUR/USD hovered around 1.19 but with US markets closed for a holiday, insufficient liquidity hindered the currency pair to rally. We now focus on the short-term resistance at 1.1920. If the pair is able to break through that barrier, we expect higher targets at 1.1960 and possibly even another run for 1.20. On the bottom side, traders should pay attention to a break below 1.1860. A lower target could then be at 1.1825, followed by 1.1785.

GBP/USD trended lower but remained well above 1.29. As noted in yesterday’s analysis, the cable would need to break significantly below 1.29 in order to invigorate fresh bearish momentum. As long as 1.29 remains unbroken we favor a neutral stance in this pair. A break above 1.2960 could encourage buyers for another test of 1.30.

The U.K. Services PMI is scheduled for release at 8:30 UTC.

From the U.S., we have Durable Goods Orders due for release at 14:00 UTC but this report is not expected to have a significant impact on the greenback.

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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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Yen Serves As Safe Haven On Korea Worry; Euro And Pound Unmoved

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Dear Traders,

Nothing much has changed in the EUR/USD and GBP/USD while a holiday trade was clearly in effect on Tuesday. Other currencies, such as the yen were sought as a safer haven after North Korea said Tuesday it successfully test-fired an intercontinental ballistic missile, escalating tensions between North Korea and the U.S.

The political turmoil comes ahead of the G-20 summit in Hamburg this weekend. U.S. President Trump will attend the G-20 summit and is expected to hold his first meeting with Putin.

Today, market participants will focus on the Federal Reserve and its minutes from the latest FOMC meeting. Investors are looking for clues on the path for interest rates ahead of the U.S. jobs report due on Friday. With a number of market participants doubting the Fed rate hike plans, the FOMC meeting minutes could be an interesting event for traders.

The FOMC minutes are scheduled for release at 18:00 UTC.

The EUR/USD found some near-term support at 1.1335 but we expect a stronger support to be at 1.13. If the euro falls below 1.1280 we could see a slide towards 1.1220. Euro bulls should however focus on a renewed break above 1.14 in order to buy euros towards 1.15.

The GBP/USD refrained from dipping significantly below 1.29, at least for the time being. In order to sell pounds we will keep an eye on prices below 1.2880. Lower supports are seen at 1.2850 and 1.28. Buyers of the GBP/USD should either take advantage of corrections towards 1.2885 and 1.28 or wait for a breakout above 1.3030.

The U.K. PMI report is scheduled for release at 8:30 UTC and could have a short-term impact on the pound.

We wish you good trades for today!

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