Posts

Currency Pairs Remain Range-Bound Ahead Of Next Week’s Central Bank Meetings

/in /by

Dear Traders,

The euro and pound were unable to hold onto their recent gains and weakened against the U.S. dollar Thursday despite political turmoil in the Trump administration. The euro tested the 1.23-threshold but was able to stabilize above that barrier – at least for the time being. Short traders were able to pocket a good profit yesterday as we entered short as soon as the euro dropped below 1.2350.

The pound sterling still rejects 1.40 and thus, remains range-bound between 1.40 and 1.39. As long as there is no sustained break above or below that range, there is nothing new to report.

This Friday we do not have great expectations as the focus turns to the central bank meetings next week so market movements could be flat ahead of the upcoming risk events.

Traders may keep an eye on the Eurozone Consumer Price Index at 10:00 UTC and the University of Michigan Sentiment at 14:00 UTC. However, none of these reports is expected to have a significant impact on the currencies.

We wish you a beautiful 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/

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 2018 Maimar-FX.

www.maimar.co

USD Falls On White House Instability, EUR And GBP Trend Upwards

/in /by

Dear Traders,

The pound was yesterday’s best performer while GBP/USD broke above a descending trend line that is held in the cable since January. As mentioned in previous analysis, we now take a rather bullish stance in this pair but recommend long-term oriented traders waiting for a bullish break of the 1.40-barrier.

The U.K.’s Spring Budget statement has helped the pound to regain some strength as growth forecasts were upgraded.

U.S. CPI data, on the other side, was not strong enough to alter Fed rate hike expectations and thus, the dollar weakened against other major peers. The next FOMC meeting is on March 21 but with inflation holding steady, market participants are bracing for a dovish rate hike next week.

Meanwhile, the dollar came under increased pressure as White House instability continues. U.S. President Trump fired Secretary of State Rex Tillerson and this sudden staff turnover comes only one week after Gary Cohn resigned from the White House. Trump administration concerns generally pose a threat to the greenback.

GBP/USD: The pound broke out of its triangle formation and headed towards 1.40. We now wait for a sustained break above that psychological barrier in order to anticipate further gains towards 1.4070 and 1.4150. A lower support is seen around the 1.3830-level.

EUR/USD: The euro traded with a tailwind on the back of a weakening dollar while breaking above 1.2370. As expected in Monday’s analysis, that upside break encouraged bulls to drive the euro toward a test of 1.24 and it will be interesting whether the single currency is able to stabilize above that level.

Today we will listen to ECB President Draghi’s speech at 8:00 UTC and keep an eye on the U.S. Retail Sales Report scheduled for release at 12:30 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 2018 Maimar-FX.

www.maimar.co

Will Payrolls Lead To Further Losses In EUR/USD And GBP/USD?

/in /by

Dear Traders,

The ECB’s policy decision came as a surprise for many market participants as policymakers decided to change their guidance by dropping a pledge to increase QE if needed. This tiny step to policy normalization shows confidence in the durability of euro-area growth. The euro initially rose on that hawkish bias but it was ECB President Draghi’s comments at the press conference that send the euro tumbling.

For euro bulls it should have been no surprise that the euro sharply reversed after another test of 1.2450 failed to provide a breakout. Rather, bearish momentum accelerated after the euro dropped below 1.2380 for a second time with the focus now turning to the 1.2280-support level.

The reason for the euro’s decline was that Mario Draghi gave a rather dovish speech saying that he sees interest rates at their present levels well beyond the end of QE. This dovish tone was all traders needed to sell euros toward lower levels.

The British pound was hurt by news from U.K. officials saying that they see “no Brexit deal until next year”. The pound fell toward a low of 1.3780 and currently struggles to hold above 1.38. If it falls below 1.3750 we will focus on lower targets at 1.3710 and 1.3610. A current resistance is however seen at 1.3890.

From the U.K. we have Manufacturing Production figures scheduled for release at 9:30 UTC but this report should take a backseat to the U.S. Nonfarm-payrolls report due at 13:30 UTC, which will receive more attention.

Heading into today’s NFP release, current expectations for the data are modest, with the unemployment rate expected to drop to 4.0 percent and the headline jobs figure to come in at 205K. The focus will also be on average hourly earnings.

Have 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/

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 2018 Maimar-FX.

www.maimar.co

U.S. Dollar Sells-Off On Trade-War Concerns

/in /by

Dear Traders,

Tuesday’s price action was characterized by ongoing U.S. dollar weakness. Both EUR/USD and GBP/USD traded upwards as traders saw little reason to push the USD higher with the trade-war-theme still overshadowing the markets. Even though U.S. politicians have attempted to soften President Trumps ‘trade war rhetoric’, global concerns about a trade-war intensified. White House economic adviser Gary Cohn resigned as the U.S. administration prepares to impose steep tariffs on steel and aluminum, which Cohn had opposed.

The dollar sold-off and pushed other major currencies higher in return. Whether the euro and pound could onto their high levels remains to be seen as event risks loom with the ECB meeting and Brexit talks posing a threat.

EUR/USD: The euro broke above 1.2370 and headed towards 1.2430 on the back of a weakening dollar. We now expect a next hurdle to come in at around 1.2450 but advise traders to keep taps on the overbought situation in this pair.

GBP/USD: The pound traded with a tailwind and climbed above 1.39. For bullish momentum to continue the cable would need to stabilize above 1.3850. If the pound remains above 1.3860 we expect a potential test of the 1.40-resistance zone.

From the U.S. we have the ADP Employment Change due for release at 13:15 UTC which could provide a foretaste of what to expect from Friday’s NFP report.

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 2018 Maimar-FX.

www.maimar.co

Upbeat Brexit News Pushed Pound Higher

/in /by

Dear Traders,

Monday’s best performer was the British pound which received a boost from U.K. Prime Minister Theresa May who announced that they are close to an agreement on a Brexit transition. The upbeat news pushed the pound to a high of 1.3877 against the dollar. We now expect the pound to test the 1.39-level before potential pullbacks occur. As long as GBP/USD trades above 1.38, chances are in favor of the bulls.

Unlike the cable, there was little movement in the EUR/USD with the euro trading resiliently above 1.23. The Italian election did not result in a clear majority but market participants took a hung parliament as a more favorable outcome than having the Eurosceptic Five Star Movement hold a majority. We still wait for a clear break above 1.2370, and furthermore, a sustained break of 1.24 in order to anticipate further bullish momentum.

There are no major economic reports scheduled for release today, so the price action will hinge on investors’ risk appetite for euros and pounds.

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 2018 Maimar-FX.

www.maimar.co

Will The Dollar’s Strength Continue?

/in /by

Dear Traders,

The U.S. dollar received a boost from hawkish comments from Federal Reserve Chair Jerome Powell who conducted his first congressional testimony on Tuesday. The Fed Chair noted that his outlook for the economy has strengthened along with his confidence on inflation getting stronger. Stronger economic growth may prompt policy makers to rethink their plan for three interest rate increases in 2018. These optimistic comments probably led to the market to believe that a fourth rate hike might be in the cards, even though Powell did not mention a number for hikes.

EUR/USD

The EUR/USD was hit hard by Powell’s testimony, falling below 1.2275 and heading towards its important support around 1.22. Whether we will see a sustained break below 1.2160 will now hinge on the appetite for dollars and today’s Eurozone data.

The German Labor Market Numbers are scheduled for release at 8:55 UTC followed by the Eurozone Consumer Price Report at 10:00 UTC. If the CPI report comes in weaker than expected, the euro could further fall.

Technically, bears lie in wait for a sustained break below 1.2160 so that the double-top pattern will be played out. Nevertheless, however tempting that bearish pattern might be, traders should also have a look at the oversold situation in the EUR/USD chart, which could become an obstacle for euro bears.

GBP/USD

Compared to the EUR/USD, losses were limited in this pair. The pound found some support around 1.3850 and it seems as if sterling is still struggling to determine a direction in the near-term. Thus, with the cable still trading within a narrow price range, we see a higher likelihood of potential price breakouts now.

If the price breaks out of the symmetrical triangle, we expect larger movements and even more profitable trading opportunities.

From the U.S., we have the GDP report scheduled for release at 13:30 UTC 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 2018 Maimar-FX.

www.maimar.co

 

 

U.S. Dollar Weakness Continues

/in /by

Dear Traders,

The U.S. dollar’s weakness continued while there was nothing to prevent the euro and pound from further rising against the greenback. The British pound was able to stabilize above 1.40 on the back of positive Brexit-related news and climbed back up towards 1.4150.

The euro rose in tandem with the pound after stabilizing above 1.2455.

Given the strong uptrend in both EUR/USD and GBP/USD we could possibly see further gains but traders should be careful and watch out for potential corrections in the near-term.

EUR/USD: The euro took out the 1.25-hurdle and seems to be primed for a clear breakout above its recent trading range with the upper barrier being at 1.2540. Next hurdles could come in at 1.26 and 1.2640. While traders now may favor the upward direction, we will also pay attention to possible pullbacks towards 1.25, 1.2450 and 1.2370.

GBP/USD: The pound experienced a parabolic rise towards 1.4150 while that next barrier could serve as a make-it or break-it level. If the pound breaks the 1.4150-level significantly it could further rise towards 1.4270 and 1.43. Below 1.4065 however, bearish momentum could accelerate driving the pair back towards a test of 1.40.

It all depends on the market’s risk appetite. From a fundamental perspective, there are no major reports scheduled for release today.

Have a wonderful 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/

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 2018 Maimar-FX.

www.maimar.co

No Love For The U.S. Dollar On Valentine’s Day

/in /by

Dear Traders,

There was no love for the U.S. dollar on Valentine’s day, so the greenback ended up losing ground against the euro and pound despite better-than-expected U.S. inflation data. As expected, the U.S. CPI report had a major impact on the dollar, driving it sharply higher right after the report came out above expectations. The dollar rally did not last long, however, as stocks began to trade higher and that better atmosphere resulted in a sell-off of the dollar.

In general, even if yesterday’s CPI did beat estimates, the inflation data seems unlikely to change the pace of Fed tightening. Therefore, we may see continued dollar weakness in medium-term time frames.

Both EUR/USD and GBP/USD launched sharp recoveries after marking fresh supports.

EUR/USD: The euro dropped to a low of 1.2275 before bears were handing over control to the bulls. That shift in sentiment has sent the euro sharply higher and we now see the single currency trading around 1.2480 following yesterday’s 2-percent-surge. For traders it will now be interesting whether the euro is able to take out the next hurdle at 1.2485 before it faces the resistance zone between 1.2515- 1.2540. A break of these barriers might be possible but given the absence of fresh catalysts bullish momentum might be running out of steam. A current support is still seen at 1.23.

GBP/USD: The pound broke above 1.40 after finding support at the round number of 1.38. For bullish momentum to accelerate the pound will need to break above 1.4070. A higher target could then be at 1.4150. As long as 1.38 holds, chances are in favor of the bulls.

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 2018 Maimar-FX.

www.maimar.co

 

High Volatility Led To Unsteady Currency Movements

/in /by

Dear Traders,

The Bank of England surprised investors with a hawkish twist yesterday and warned that rate hikes may be faster and larger than originally anticipated. This hawkish tone caught the market by surprise and led to high volatility and a short squeeze in GBP/USD. While sterling bulls were able to benefit from the rapid surge to a high of 1.4067, the upward move turned out to be only short-lived and traders had to be quick to take the profit.

To sum it up, the BoE lifted its forecasts for economic growth and said interest rates may need to rise at a steeper pace than previously thought. BoE policymakers now see three rate hikes over the course of three years while the market is now pricing in a 70 percent chance of a rate increase in May, up from nearly 50 percent yesterday.

While the BoE’s hawkishness should pave the way for further gains in the pound, it were high volatility and ongoing Brexit uncertainty that prevented the currency from rising further against the U.S. dollar.

We were able to book a good profit yesterday by trading our daily long signal.

The euro ended the day unchanged against the greenback after it dropped to a low of 1.2212. For euro bears, however, the downward move has proved insufficient to provide a sustained profit. Prices in the EUR/USD narrowed, suggesting that we may see some upcoming breakout of that tight range. If the euro climbs above 1.2265 we may get another test and potential break of 1.2295. A higher target could then be at 1.2330. If the euro, however, falls below 1.2240 it could further decline towards 1.22. A lower target could then be at 1.2150.

There are no major economic reports scheduled for release today. U.K. Manufacturing Production is the only second-tier report scheduled for release at 9:30 UTC.

Have 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/

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 2018 Maimar-FX.

www.maimar.co

 

Greenback Continues Recovery But Today It’s Turn-Around Tuesday

/in /by

Dear Traders,

The U.S. dollar continued its recovery against all major currency pairs and thus, pairs like EUR/USD and GBP/USD trended lower at the start of this week. While short traders were able to book a profit yesterday we recommend a cautious approach when expecting further bearish momentum. On so-called ‘turn-around Tuesdays’ there is a risk that we may see some pullback following Monday’s decline.

GBP/USD: The cable broke below the psychological level of 1.40 and, as mentioned in our yesterday’s analysis, chances could be in favor of the bears now. A next lower target could be around the 1.39-barrier and if 1.39 breaks, the pound may drift lower towards 1.3830/00.

For bullish momentum to accelerate, the pound would need to climb back above 1.4030.

As for the EUR/USD, we still see the pair trading within its recent sideways trading range while remaining above 1.2335. As long as 1.23 holds, we anticipate pullbacks towards 1.2430/40. Higher resistances are seen at 1.2480 and 1.2540. If the euro, however, falls below 1.2290, we expect further losses towards 1.22.

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 2018 Maimar-FX.

www.maimar.co