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EUR/USD And GBP/USD: Uptrend Could Be Losing Steam

Prices of the U.S. dollar’s counterparts continue trading upward, and when we look particularly at the EUR/USD we see that the pair broke in the direction anticipated by an inverted Head and Shoulders chart formation. Thus, the euro was pushed to the 1.09 resistance handle. The euro’s recent uptrend has largely been driven by the dollar sell-off and the European Central Bank’s hawkish stance to fight inflation by further interest rate hikes. The ECB is expected to raise rates by 50bps at its next rate decision in February. The Federal Reserve on the other hand is widely expected to slow its rate hike path, pointing toward a less hawkish approach. Markets await a 25bps rate hike at the Fed’s meeting next Wednesday.

EUR/USD: Bulls may try to push the pair up to 1.10 but considering the fact that the euro is close to overbought levels, the next leg up might be limited to 1.0970, for now. Bears will watch out for price breaks below 1.0830 and 1.0730 in order to sell the euro.

GBP/USD: The pound tested the 1.2450-area but since economic prospects in the U.K. are not looking too good, we doubt that there is far more upside potential. We expect the pair to fall back towards 1.23 – 1.2250.

From a fundamental backdrop, traders will watch Friday’s U.S. PCE deflator that could generate some volatility.

Daily Forex and DAX Signals:

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Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.

We wish you good trades!

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Copyright © All Rights Reserved 2023 MaiMarFX.

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Holiday Conditions Ahead

Welcome to this new trading week which will be our last one for this year.

Let’s shortly resume what has happened last week? The Federal Reserve raised rates by 50bp and stressed that more work needs to be done on fighting inflation despite a softer November U.S. inflation report. The European Central Bank surprised markets with a more aggressive hawkish tone. The DAX fell about 3.3 percent and below 14000 while the euro has held solid above 1.05. A cautiously stronger dollar led to a correction in the cable while the support around 1.21 remains intact.

Typically, the final two weeks of the year see a significant drop off in liquidity. However, thin liquidity can also transmit unexpected volatility but often without a clear direction. Traders do therefore better to be prepared for sideways and maybe choppy swings, rather than for trending markets. We for our part, will not reinvest much of our December gains and will start the Christmas holidays contemplatively.

The last interesting piece of economic data will be Friday’s PCE index.

Our trading ideas for today 19/12/22:

EUR/USD

Long @ 1.0640

Short @ 1.0580

GBP/USD

Long @ 1.2215

Short @ 1.2175

DAX® (GER40)

Long @ 13960

Short @ 13890

If you are keen to know where we put Take-Profit and Stop-Loss, if we trade on a specific day or not and how we manage open positions, subscribe to our signals.

Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.

We wish you good trades!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2022 MaiMarFX.

www.maimar.co

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Return Of Risk Aversion Or Bull Rally?

Welcome to a new trading week. Liquidity will return this week to the markets with traders eyeing the Federal Reserve’s favorite inflation index, the PCE deflator scheduled for release on Thursday and the ever-popular U.S. Nonfarm payrolls due on Friday.

Apart of the fundamental backdrop, the threat of rising social instability in China could prompt investors to shift toward safe haven assets such as the U.S. dollar. However, if current protests encourage China to accelerate its exit from Covid-Zero, it could be positive for markets over the medium-term.

EUR/USD: We will focus on a trading range between 1.0450 and 1.03. Above 1.0460 the next higher target is seen at 1.0590. Below 1.0290 however, we will pencil in a lower target at 1.0170.

GBP/USD: Given the prevailing short-term uptrend, we keep tabs on a higher target at 1.2250 that is considered the current resistance zone. However, the cable is due for a correction, which is why the 1.17-support will be of importance. A fall below 1.1650 could prompt bears to test the 1.1450-area.

By the way, for all interested German-speaking readers who want to learn more about the application of our strategies and generate profitable signals themselves on a daily basis, we recommend our latest strategy article in the Traders’ December issue. Available from November 26th at newsstands or online.

 

Our trading ideas for today 28/11/22:

EUR/USD

Long @ 1.0390

Short @ 1.0340

GBP/USD

Long @ 1.2090

Short @ 1.2060*

DAX® (GER40)

Long @ 14530

Short @ 14430

Settings for all trades today: Entries from 8:00 am UTC, SL 25, TP 40

Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.

We wish you good trades!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2022 MaiMarFX.

www.maimar.co

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DAX: Bullish Breakout In The Making?

Today is our last trading day for the time being. Meanwhile, we look back at the month of July, which was characterized by losses and consolidations. While the EUR/USD traded quite well, we had to record losses with the DAX. But even such months are part of trading, albeit painful.

The U.S. PCE Index at 12:30 UTC could be of importance today in terms of movements in the U.S. dollar.

DAX

It sees as if bulls are working on a bullish breakout above 13500. If this happens, we may see a run for 14000. On the downside, the 13000-mark remains of major importance.

Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2022 MaiMarFX.

www.maimar.co

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Range-Bound Market

Both EUR/USD and GBP/USD have been in range trading mode in recent days. Thus, profitable breakouts were lacking. However, the muted price action could extend into this new week unless we see price breakouts above or below the following crucial price levels which could ignite fresh momentum.

EUR/USD: Bullish: Above 1.0610, we pencil in a next target at 1.0640. Above 1.0660, the next target is at 1.0760. Bearish: Below 1.0480, we focus on a dip towards 1.04. Below 1.0380, next targets are at 1.0350 and 1.02.

GBP/USD: Bullish: Above 1.2325 we anticipate a test of 1.24. Above 1.2430, our focus shifts to 1.26. Bearish: Below 1.2140, next lower targets are seen at 1.20 and 1.1920.

What is in store for the week ahead? The focus will be on the Federal Reserve’s preferred inflation gauge, the PCE index due for release on Thursday. Furthermore, we have speeches from various central bank heads due on Wednesday.

Have a good start to the new week!

 

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Profitable Week So Far

Also Wednesday has been a profitable trading day since we were able to book two times a small profit with our buy order at 1.1135 in the EUR/USD and a bigger profit of 100 points with a second sell attempt in the DAX at 14710.

The EUR/USD heads for 1.12 amid the U.S. dollar’s retreat. We expect a higher resistance to come in at around 1.1220 from where we may see a correction. A higher support is now seen at 1.10.

GBP/USD: Above 1.3210, we may see a test of 1.3250. Further above 1.3270, a next target could be at 1.3350. A crucial support is however seen at 1.30.

Today we will keep tabs on the PCE price index at 12:30 UTC. A higher reading could help the struggling U.S. dollar.

Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.

Daily Forex, DAX And Crypto Signals:

If you are keen to know where we put Take-Profit and Stop-Loss, if we trade on a specific day or not and how we manage open positions, subscribe to our signals.

EUR/USD

Long @ 1.1175

Short @ 1.1130

GBP/USD

Long @ 1.3160

Short @ 1.3125

DAX® (GER30)

Long @ 14670 Trade has hit profit target

Short @ 14620*

We wish you good trades!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2022 MaiMarFX.

www.maimar.co

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Further U.S. Dollar Strength Ahead?

The euro consolidated within a 50-pip-range against the U.S. dollar Tuesday and it seems as if the dollar is only taking a breather before we see the greenback resuming its rally and thus seeing more bearish momentum in the EUR/USD. As long as the pair remains trading below 1.13, the chances are in favor of the bears with a next lower target seen at 1.1150.

The GBP/USD trended lower as prospects for a Bank of England December rate hike started to fade. Below 1.3340, the next target is at 1.33.

Today, traders await key U.S. data such as the PCE index due at 15:00 UTC as well as the latest Federal Reserve minutes at 19:00 UTC. If the PCE index surprises to the upside, the dollar could further strengthen with traders speculating on a tighter Fed monetary policy path.

Daily Forex Signals:

If you are keen to know where we put Take-Profit and Stop-Loss, if we trade on a specific day or not and how we manage open positions, subscribe to our signals.

Try out our new signals for cryptocurrencies:

ETH/USD

Long @ 4310

Short @ 4240

 

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Euro Roses Toward 1.17, Traders Await PCE Index

The U.S. dollar dipped after data showed that U.S. growth slowed more than expected in the third quarter. The greenback’s weakness benefited other counterparts such as the euro which rose toward 1.17.

European Central Bank President Christine Lagarde pushed back on interest rate increases, saying markets are ahead of themselves. Lagarde acknowledged that inflation will last longer than originally anticipated. ECB policy makers expect inflation to exceed the 2 percent target next year but hold different views on whether inflation will persist in 2023.

The market, however, still sees faster rate increases with rate-hike bets being trimmed only slightly after the ECB’s press conference.

The euro rose to a high of 1.1692 and if euro bulls are able to overcome the 1.17-hurdle we will shift our focus to higher highs at 1.1730 and 1.1750. For bearish momentum to accelerate we must see a renewed drop below 1.1620 but more importantly below 1.1590.

Today we have the PCE Price Index scheduled for release at 12:30 UTC which could affect the dollar’s performance.

Have a beautiful weekend.

Daily Forex Signals:

If you are keen to know where we put Take-Profit and Stop-Loss, if we trade on a specific day or not and how we manage open positions, subscribe to our signals.

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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USD Holds Onto Gains, Focus On PCE Index

Sentiment remains dominated by mounting fears about slowing economic growth, elevated inflation, supply-chain bottlenecks and a global energy crunch. The U.S. dollar holds onto its gains heading into the weekend with market participants bracing for the Federal Reserve to wind down its stimulus.

Next week’s focus will be on the non-farm payrolls report that is expected to show more than double the job gain from August.

Today we will keep an eye on the U.S. personal consumption expenditures index (PCE) due for release at 12:30 UTC. Bear in mind that the Fed uses the PCE price index as its main measure of inflation. A surprise reading could thus impact the greenback.

EUR/USD: A next crucial target for bears is seen at 1.15. On the upside, we expect a resistance to come in at around 1.1670.

GBP/USD: We see a lower target at 1.3350 now. Breaking however below 1.3280 could see an extended slide towards 1.3180. A current resistance is seen at 1.36.

DAX: Bears, watch out for lower targets at 15000 and 14900. A break below 14800 could generate an even stronger sell signal towards 14400. For a bullish breakout on the other side, we would need to see prices above 15650.

Have a good weekend!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2021 MaiMarFX.

www.maimar.co

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EUR/USD Tests 1.17-Support, More Losses To Come?

Welcome to the last week of September. The euro was unmoved at this week’s opening as the German election failed to produce a clear winner. Following the tight election, the Social Democrats edged ahead of Merkel’s conservative bloc. Germany is set for a three-way coalition, led by SPD’s Olaf Scholz but it could take months of negotiations and uncertainty to form a coalition. The euro was steady this morning, holding above 1.17.

Following last week’s hawkish messages from the Federal Reserve and the Bank of England, the greenback and the pound sterling could gain traction but it will also depend on the market’s risk appetite for other peers. We will keep an eye on the technical picture in order to validate potential price breakouts in the coming days.

Compared to the last week, we do not have the heavy docket of event risks this week but traders should keep an eye on the European Central Bank’s forum panel on Wednesday that brings together heads of the Fed, ECB, BoE and BoJ. The top listing for data will be Friday’s PCE deflator, the Federal Reserve’s favorite inflation indicator. Furthermore, Fed Chair Jerome Powell and Treasury Secretary Yellen will testify at a Senate Banking Committee on Tuesday.

EUR/USD: We expect the pair to trade between 1.1770 and 1.1660. A clear break above 1.1770 could open door for a test of 1.1830. Below 1.1640, bears will gain control.

GBP/USD: As long as the cable remains above 1.36, chances are in favor of the bulls with a higher target at 1.3880. Falling below 1.36 could see a dip towards 1.35.

 

Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.

We wish you good trades!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2021 MaiMarFX.

www.maimar.co

Follow us on social media:

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