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Profitable Trading Week

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Dear Traders,

In brief, we got what we were looking for: The ECB delivered a surprise which was initially misinterpreted and we realized a good profit from trading both bullish and bearish breakouts in the EUR/USD.

Let’s quickly analyze what had happened: When the ECB announced that they will wind down quantitative easing from 80 billion euro to 60 billion euro in April 2017, market participants wrongly interpreted the reduced amount as a taper. The euro therefore soared beyond 1.0830 as a first response but quickly retreated from its high at 1.0874 after the market realized that the ultimate stock of ECB bonds instead will be higher. While economists had been looking for asset purchases to continue six months beyond the previous end date, ECB policy makers added another three months of purchasing, boosting its balance sheet to 540 billion euros instead of 480 billion euros. Moreover, ECB president Mario Draghi insisted “that there is no tapering in sight”. This was finally reason enough to sell the euro below 1.07.

In a nutshell, the ECB may have bought some time and nine months of keeping their options open, but looking at the future, cutting to 60 billion euro per month could be a staging post to further cuts and thus, effectively tapering.

Whatever the case, we are looking back at a very profitable trading week, specifically in the EUR/USD. On balance, this week alone we generated a profit of 166 pips by our daily signal alerts and a great gain of 250 pips by our swing signals for the euro. We will therefore not invest our weekly profits today.

Have a wonderful weekend and trade well!

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 2016 Maimar-FX.

www.maimar.co

 

 

 

Euro On A Rollercoaster While Pound Continues To Weaken

/in /by

Dear Traders,

The broad-based strength of the U.S. dollar drove the activities in the currency market and allowed for adequate profits for sterling and euro bears. The British pound was hit hard by Brexit concerns on the one hand and dollar strength on the other. As a result, the cable fell to a 31-year low against the greenback and traders prepare for further losses in the GBP/USD. While the pound is expected to depreciate further ahead of Britain’s planned exit from the EU, investors believe that a weaker currency will help to boost British exports, making larger U.K. companies more competitive.

Technically, we expect the 1.27-level to lend a short-term support to the pound before we may see further losses. In case that the 1.27-mark withstands the downward pressure, we anticipate a correction toward the 1.28-level.

The euro was accompanied by higher volatility on Tuesday and losses in the EUR/USD were soon erased after a report said that the European Central Bank will probably taper bond purchases before the conclusion of quantitative easing. The euro overreacted on that hawkish statement and jumped towards 1.1250. Nevertheless, the technical picture has not changed materially as the euro is still confined to its tight trading range between 1.1240 and 1.1140. Above 1.1240 we may see a renewed test of 1.1270 while a current support is still seen around the 1.1130-level.

Today, we have some interesting economic data scheduled for release, influencing the price development of both major currency pairs:

8:30 UK Services PMI

9:00 EUR Euro-zone Retail Sales

12:15 USA ADP Employment Change

14:00 USA ISM Non-Manufacturing Composite

(Time Zone UTC)

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 2016 Maimar-FX.

www.maimar.co