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Pound Falls Victim To Failure To Reach Brexit Agreement

Dear Traders,

Yesterday was absolutely none of our favorite trading days as we had to struggle with volatile but choppy swings in the GBP/USD after U.K. Prime Minister May and European Commission President Juncker failed to reach an agreement on Brexit negotiations due to divisions over Ireland. The pound’s performance was disastrous for breakout trades as the pound failed to determine a directional bias, trading choppily sideways between 1.3540 and 1.3410. The pound sterling remains very sensitive to new Brexit headlines and as we enter the final phase of the year when liquidity typically dries out, we must prepare for unexpected price swings and heightened volatility despite low liquidity.

The euro ended the trading day virtually unchanged against the greenback and our short entry has unfortunately proved unsuccessful after bearish momentum faded. We will now focus on a break either above 1.1930 or below 1.1835.

Traders of the GBP/USD should better wait for price breakouts above 1.3565 (bullish) or below 1.3380 (bearish).

Important economic data today:

9:30 UK PMI Report

15:00 USA ISM Non-Manufacturing

(Time zone 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 2017 Maimar-FX.

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Euro And Cable: Sideways Trend As Major Market Movers Lack

Dear Traders,

With U.S. markets shut on Monday, we had a pretty quiet market and low market volatility. Thus, any larger market movements were lacking and both of our major currency pairs fluctuated in narrow sideways trading ranges.

During Asia-Pacific trading hours the euro finally dropped below 1.06 and is now within its support area between 1.0580 and 1.0560. Given the recent bearish momentum the euro may extend its losses towards 1.0550 but in short-term time frames the single currency is in an oversold territory which is why we could see some pullbacks today. Current resistances are seen at 1.06 and 1.0635 from where sellers may jump back in.

German and Eurozone PMI reports are scheduled for release at 8:30 and 9:00 UTC but these reports are not expected to have a significant impact on the euro.

The British pound was unable to break through the 1.2480-barrier and finally gave up its modest gain, sliding back towards 1.2430. If the pound falls below 1.2425, we may see further losses towards 1.24 and possibly even 1.2350. Sterling bulls should however wait for prices above 1.2480 in order to buy sterling towards 1.2550.

Bank of England Governor Mark Carney will testify before the U.K. Parliament at 10:00 UTC and his comments could have an impact on the pound’s price action.

Daily Forex signals:

Additional daily and long-term entries are available for subscribers.

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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 2017 Maimar-FX.

www.maimar.co

 

 

 

How To Trade The Current Market? Not At All!

Dear Traders,

How one can trade in a market where even central bankers are unable to assess the economic situation and the need for further measures? The answer is simple: It is best to not trade at all. At least, this might be the motto of the financial markets at the moment. Traders who had hoped for some profitable fluctuations following the ECB announcement have been disappointed, once again.

The new trend among policy makers is to just admit that they are uncertain about how the big themes including Brexit and other political turmoil will affect the global economy. European Central Bank president Draghi refrained from providing new insights as the central bank has no clear picture of the impact of Brexit. He admitted on Thursday that nobody can see what the consequences might be as policy makers have not enough data to evaluate the situation right now. The mood therefore remains skeptical. The next ECB meeting is on September 8 and it remains to be seen whether the central bank has a clearer picture until then.

Looking at the technical chart we would actually assume that the euro might be primed for an upside correction but given the uncertain market sentiment all predictions of further movements could be useless. We are therefore not going to refer to the technical picture today, as there is no clear trend within a low volatile market environment.

German and Eurozone PMI reports are scheduled for release at 7:30 and 8:00 UTC but these reports are not expected to have a significant impact on the euro.

The cable’s price development ended in a narrow trading range, formatting a symmetrical triangle in the hourly chart which may predict upcoming price breakouts. With prices above 1.3245 bullish engagements could be rewarding whereas a break below 1.32 could reinvigorate bearish momentum in the short-term. Market participants will focus on the U.K.PMI report due for release at 8:30 UTC.

Although the market doesn’t offer profit opportunities at the moment, we will stay on the ball and try to make the best out of the current market conditions.

Have a nice weekend.

Daily Forex signals:

Additional daily and long-term entries are available for subscribers.

View our daily signal alerts http://www.maimar.co/category/daily-signals/

Subscribe to our daily signal service http://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

 

 

 

How Low Can Euro And Sterling Go?

Dear Traders,

The U.S. dollar advanced to new highs against the euro and British pound. The greenback resumed its uptrend in expectation the Fed will hike next month while other central banks are biased to ease. The euro weakened toward a fresh low of 1.06 after European Central Bank President Mario Draghi encouraged speculation the ECB will increase stimulus next week. Draghi said Friday the central bank will do what it must to raise inflation “as quickly as possible”. The euro could thus be vulnerable to further losses ahead of the ECB’s next policy decision on December 3.

Nonetheless, traders should be cautious with short positions as central bank actions are mostly priced in. The downtrend in the EUR/USD may come to a temporary halt at 1.0585, 1.0560 or 1.0520.

This week is a shortened holiday-trading week as U.S. markets will remain closed for Thanksgiving holiday on Thursday and Friday. Important economic reports are scheduled for release on Tuesday and Wednesday with U.S. Gross Domestic Product, Personal Consumption, Consumer Confidence and Durable Goods Orders.

Important eurozone reports are due for release today with the Eurozone’s PMI reports and Tuesday with the German IFO Business Climate.

Sterling traders should watch the U.K. GDP figures, scheduled for release on Friday. While GBP may find a short-term support at 1.5150, key support levels could only be at 1.51 and 1.5030. Resistances are seen at 1.52 and 1.5240.

This week starts off with important data releases such as German Services and Manufacturing PMI reports at 8:30 GMT, Eurozone’s PMI reports at 9:00 GMT and U.S. Existing Home Sales at 15:00 GMT.

We wish you a good start to the new week!

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

 

 

 

Euro seems to be unstoppable

Dear Traders,

The euro extended its gains for the second consecutive day and climbed above 1.1215 yesterday. During the Asian session the demand for euros seemed to be “unstoppable” and the common currency advanced significantly towards 1.13. Once the currency pair breaks above 1.13, it may head towards 1.14 and further 1.1450-67, which acts as a current key resistance. However, pullbacks within an intact upward trend could occur until 1.1215 and 1.1190.

In the meantime, the market’s reaction to Greek headlines concerning the resignation of Greek Prime Minister Alexis Tsipras was muted. Tsipras called snap elections which could be held as soon as September 20. Since he has lost his majority in the Greek parliament , the election for the new Greek Parliament could strengthen his power and form a more manageable coalition government.

The pound sterling failed to set off in any specific direction and traded shy off the 1.57-border. The level around 1.5715 remains an important resistance zone for the time being whereas an upside break could release fresh bullish momentum towards 1.5770 and 1.58. 

Today, traders should keep an eye on the German and Eurozone PMI reports scheduled for release at 7:30 and 8:00 GMT. Furthermore, U.K.Public Finances (8:30 GMT) and U.S. Markit Manufacturing PMI (13:45 GMT) could be interesting reports to watch.

We wish you good trades and a beautiful weekend!

Daily Forex signals:

View our daily signal alerts http://www.maimar.co/category/daily-signals/

Subscribe to our daily signal service http://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 2015 Maimar-FX.

www.maimar.co