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Focus Turns To The Fed: Dot-Plot To Show 4 Rate Hikes This Year?

Dear Traders,

This trading week has been, so far, not only volatile but also very profitable for traders. Yesterday, we saw the U.S. dollar gaining back ground against the euro and British pound ahead of today’s highly anticipated FOMC decision. Thus, short traders were able to book a good profit.

The pound slipped below 1.40 after U.K. inflation data came in worse-than-expected but losses were limited due to hopes that tomorrow’s Bank of England statement will be hawkish.

The euro sold off after the German and Eurozone ZEW Surveys fell well below expectations.

Today, all eyes will be on the Fed decision due at 18:00 UTC followed by Jerome Powell’s news conference 30 minutes later. Market participants are curious whether the central bank will lift its projections for the pace of policy tightening this year. While a 25-basis-point rate is almost certain the focus will turn to updated economic projections (SEP – Summary of Economic Projections) and the Fed’s dot plot forecast. If the dot plot shows monetary policy makers favoring 4 rate hikes this year, the dollar will rise. Anything else could disappoint the market’s high expectations and could send the dollar tumbling.

While today’s Fed decision will be one of the most important decisions in years, it does not mean that it will be market-moving in terms of profitable trading opportunities. As usual, we will prepare for both bullish and bearish scenarios and will update traders (subscribers) about all current and pending trades on our live signal page.

We wish you profitable trades for today!

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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 2018 Maimar-FX.

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Euro And British Pound Flying High

Dear Traders,

After the euro’s strong performance from Tuesday, the cable followed with a rise towards 1.30. A reason for the pound’s flight were hawkish rate comments made by Bank of England Governor Carney who said the BoE may need to begin raising interest rates and will debate a move in the next few months. “Some removal of monetary stimulus is likely to become necessary” Carney said on Wednesday in Sintra, Portugal. The pound sharply strengthened in response to his remarks.

Technically, the GBP/USD broke out of its recent downtrend channel and is currently headed towards 1.30. Buyers should pay attention to higher prices above 1.3060 in order to buy pounds towards 1.32. A current support is however seen at 1.28.

Traders who traded the EUR/USD Wednesday had a tumultuous session with the currency pair fluctuating choppily between 1.1390 and 1.1290. Everything from profitable breakouts till loss-making fake-outs was included in yesterday’s trading but at the end of the day, we were able to post a small profit.

Meanwhile, the euro was torn between the market’s (mis)interpretation of Draghi’s recent upbeat remarks, suggesting the beginning of the ECB’s withdrawal from its accommodative policy, and the central bank’s back paddling afterwards. The conflicting ECB signals sent the euro on a roller coaster ride but the follow through of the euro’s latest rally had a greater impact than quelling speculation. Consequently, the euro broke above 1.1390 and tested the 1.1420-level. Given the strong uptrend in the EUR/USD we expect the euro to continue its rally towards 1.15/1.1550. If the pair touches 1.15, sellers may take the opportunity and jump back in. A pullback towards1.13 however, may attract the attention of buyers.

From the Eurozone we have the German Consumer Price scheduled for release at 12:00 UTC, a report which could have an impact on the euro.

The U.S. GDP report due for release at 12:30 UTC will be of interest for dollar traders.

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 2017 Maimar-FX.

www.maimar.co

 

 

 

GBP/USD: Highly Profitable Trading

Dear Traders,

Those of you who traded the GBP/USD recently, were able to achieve a significant profit by trading our daily signal alerts. Yesterday, this was once more the case while our short trade hit the profit target in less than five minutes. The pound slid to a low of 1.2602 after Bank of England Governor Mark Carney said he is still worried about the impact of Brexit on the economy. Carney said in yesterday’s morning statement that now is not the time to hike rates. In short, his view is still very bearish and with Brexit negotiations having just begun it could be a bumpy road for the U.K. in the next months. In case of any bad headlines, the pound will fall but looking at the technical picture, we currently see chances of a, at least short-term, recovery from sterling’s low levels.

GBP/USD

The currency pair stopped its fall at the lower bound of its recent downward channel. While this does not necessarily mean that further losses are unlikely, that halt just increases the likelihood of a potential pullback towards 1.27 and 1.28. Furthermore, the Relative Strength Index (RSI) approaches oversold territory, underpinning the chances of short-term upward movements. If the pound drops however below 1.2590 we expect accelerated bearish momentum towards 1.2550 and 1.25.

The performance of the EUR/USD is lagging behind since price fluctuations narrowed. The euro declined on the back of a slightly stronger U.S. dollar but the decline was limited to a low of 1.1118. We will now pay attention to a break of 1.11. After the 1.1075-level has been breached, we could see the euro tumbling towards 1.1020. Current resistances are however seen at 1.1150 and 1.12.

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

 

 

 

Euro And Pound Resume Uptrend

Dear Traders,

The British pound traded higher against the greenback in the run-up to Thursday’s U.K. election. A recent poll has suggested that Theresa May’s Conservatives may still maintain a lead over the Labour Party. The GBP/USD broke significantly above 1.29 and headed towards 1.2950. We expect a next resistance to come in between 1.2985 – 1.2950. For the pound to rally, it would require a renewed break above 1.30. A current support is however seen at 1.2885.

The EUR/USD found support at 1.1235, so yesterday’s downswing might be considered a normal correction within the recent uptrend of the currency pair. If the euro falls below 1.12 we could see a steeper decline towards 1.1160/40. On the topside, we anticipate next hurdles at 1.1320 and 1.1360.

There are no major economic data reports scheduled for release today, so the market activity could be subdued.

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/

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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

 

 

 

Euro Strength: No End In Sight, Next Target 1.13?

Dear Traders,

The euro further advanced against the U.S. dollar after German Chancellor Angela Merkel said the euro is “too weak” because of the European Central Bank’s monetary policy. Her statement gave traders yet another reason to buy euros towards the next resistance level at 1.13. Speaking of euro strength, an end to the rally is not yet in sight and if the euro overcomes the 1.13-reistance significantly, we may see a run for 1.1420/50. A current support is however seen at around 1.1215, followed by a stronger support zone near 1.1170.

The German PMI report is scheduled for release at 7:30 UTC, followed by the German IFO Index 30 minutes later. However, none of these reports is expected to have a significant impact on the euro’s price action.

The British pound failed to make significant progress above the 1.30 level, whereas, on the other side, it was little affected by a terrorist attack at a concert in Manchester in which 22 people were killed. The pound traded resiliently between 1.3050 and 1.2965 and as long as it remains firmly above 1.29 we do not see any major downside risks. On the topside, the 1.3065-mark needs to be broken in order to spark fresh bullish momentum.

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/

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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

 

 

 

There Is No Reasonable Explanation For The Dollar’s reversal

Dear Traders,

It seemed as if dollar bulls just sought an excuse for taking profits on dollar positions after the U.S. dollar rose to new highs on evidence of firming inflation. Whereas for the U.S. all signs are pointing to higher inflation and thus, higher interest rates and a stronger dollar, there was no reasonable explanation for the sharp reversal of the USD towards the end of the trading day. During the House Financial Services Committee hearing, conservatives Republicans pressed Fed Chair Janet Yellen to concede that economic growth is still disappointing and that the Fed has failed to fix underlying problems. For the most part, Yellen’s tone was positive, defending the Fed’s efforts that had contributed to strong job growth. The only negative point during the hearing was that Yellen acknowledged that economic growth has been “quite disappointing”. This seemed to be the reason for the weakening dollar in short-term time frames.

The EUR/USD traded higher, heading towards 1.0630 and it will now be interesting whether the 1.0660-resistance is going to hold. If the euro breaks through 1.0665/70 we expect accelerated bullish momentum towards 1.0710 and possibly even 1.0750. A current support area is however seen at 1.0580-60. If the euro falls back below 1.0560 it could extend its losses towards 1.0510.

The pound sterling ended the trading day virtually unchanged against the greenback. A break above 1.2520 could boost bullish momentum but we bear in mind that the barrier at 1.2550 is still unbroken. Crucial support levels are seen at 1.2350 and 1.2310 and as long as the pound remains firmly above these zones we will rather focus on higher price levels.

There are no major economic reports scheduled for release today and those of you who have already made a good profit this week, shall better not reinvest their profits.

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/

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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

 

 

 

U.S. Dollar Regains Strength, Focus On GDP Data

Dear Traders,

The U.S. dollar regained some strength Thursday, leading to downturns in the euro and cable. The pound currently faces its support at 1.2550 and sterling bears may wait for breakouts below 1.2530 and 1.2490 to sell sterling towards 1.2450/1.24. For the pound to rally, it may need to climb through the 1.2610-level again.

The euro dropped significantly below 1.07 and our guess of upcoming bearish momentum following a head-shoulders pattern (stated in Wednesday’s analysis) was finally right. Now the euro will need to break below 1.0650 so that we can focus on lower targets at 1.0620 and 1.0590. Below 1.0580 however, bearish momentum could accelerate towards 1.05. Those who are looking for any further upside momentum should rather wait for prices above 1.0720 in order to buy euros. Above 1.0770 a higher target could be at 1.0815.

Today, all eyes will be on important U.S. data such as GDP figures and Durable Goods Orders, both reports are scheduled for release at 13:30 UTC. Fourth-quarter GDP numbers are forecast to show slower growth and if that forecast proves to be correct, we may see further weakness in the greenback.

We wish you good trades for today and a relaxing 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 2017 Maimar-FX.

www.maimar.co

 

 

 

Profitable Trading In A Politically Driven Market

Dear Traders,

In summary, we can say that it has been a very profitable trading day in a politically driven market. While the Brexit and Trump themes are market-dominating there is only one thing that matters to traders: The profit at the end of the trading day and yesterday’s profit was quite good. Sterling traders were able to generate a profit of 100 pips by our long entry and also euro traders did not go home empty-handed, pocketing a good gain by trading twice yesterday’s long entry.

What happened in the market? Two things came together. Firstly, the U.S. dollar has lost some of its strength after Donald Trump said that the dollar is already ‘too strong’, posing a challenge to the economy. This prompted investors to take profits on their long dollar positions.  Secondly, U.K. Prime Minister Theresa May has calmed the markets as a ‘hard’ Brexit may not be as hard as expected. While she said that the U.K. “cannot possibly” remain within the European single market, pursuing a hard Brexit, May confirmed that the final deal would be put to the vote in Parliament. The fact that the parliament will approve the final Brexit deal is positive for sterling due to hopes that the deal must be good in order for the parliament to approve it.

GBP/USD

The pound climbed to a high of 1.2415 following May’s speech. True to the motto “The trend is your friend”, there are chances that the pound may extend its recent gains to 1.25 provided that sterling is able to take the hurdle at 1.2430. However, after such a strong price movement we also anticipate corrections. A next support is now seen at 1.23. If the pound falls back below 1.2270 we expect a lower support to be at 1.22.

The U.K Labor Market report is scheduled for release today at 9:30 UTC and if wages confirm a steady growth, sterling bulls might push the cable to higher levels.

EUR/USD

The euro formatted a recent uptrend channel and based on that channel, further gains may be limited to the upper trend line at 1.0730. We expect a next resistance area to be at 1.0750 whereas a current support is seen at 1.06.

Eurozone Consumer Prices are scheduled for release at 10:00 UTC today but we do not expect this report to have a significant impact on the euro.

The most important piece of economic data will be the U.S. Consumer Price report due for release at 13:30 UTC. In case the report comes in with an upside surprise the dollar will regain some strength.

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 2017 Maimar-FX.

www.maimar.co

 

 

 

Euro And Pound Trade Near Crucial Price Levels

Dear Traders,

The biggest story in the market was the sharp decline of the British pound on Monday. Sterling touched its lowest level since October on hardening Brexit talk and we are curious to see whether the 1.21-level will be able to withstand the downward pressure. In case of a dip below 1.21 a next lower target could be at 1.2080 but this should be the lower bound of a short-lived downward trend. Those who bet on a pullback now, should focus on prices above 1.2080 to evaluate their positions. If the pound drops below that level we expect accelerated bearish momentum, driving the pound towards 1.19. In case of pullback in the GBP/USD, we expect the 1.2230-level to act as a short-term resistance. Anyway, yesterday was a profitable trading day for sterling traders with our short entry providing a good gain.

The euro rose towards the upper bound of its current trading range and we will now focus on the 1.0640/60-resistance area. There is a risk that the single currency may overshoot the 1.0670-level and head for 1.0850 following a stronger upward correction. On the downside, the 1.0480-level remains in focus.

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 2017 Maimar-FX.

www.maimar.co