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Pound And DAX Sell-Off – Next Targets To Watch Out

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Tuesday saw a broad-based sell-off on concerns about inflation. More specifically, concerns over the debt-ceiling impasse added to the fresh bout of risk aversion. The U.S. dollar benefited.

Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen warned in a Senate hearing that a U.S. default due to a failure to raise the debt ceiling would have catastrophic consequences. Republicans blocked a move to raise the debt limit.

The worst performer was the British pound that sold off as investors turned cautious on surging energy prices and panic-buying.

GBP/USD – Risk-aversion sent the pair tumbling

The cable broke below 1.36 and headed towards 1.35. We now see the pair within a crucial support zone ranging from 1.36 until 1.3450. We expect some rebound as long as 1.3450 holds.

DAX – Bring it down

The index reversed course after 15700 proved to be difficult to overcome. Traders now eye the crucial 15000-support followed by 14900. If 14800 breaks, we get a sell signal with a lower target around 14300.

EUR/USD – Where is the breakout?

The euro refrained from a technical breakout while prices are confined to a very narrow range. We keep an eye on a upside move above 1.17 to anticipate a higher target at 1.1740, or on the downside, a break below 1.1670 that could lead to further losses towards 1.1630.

 

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Risk Aversion Leads To EUR And GBP Sell-Off

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Dear Traders,

The fragility of the European Union is back in the spotlight and there seems to be nothing that could stop the euro from falling. The euro broke below crucial support levels against the U.S. dollar and fell to the weakest level in ten months. Whether the euro will extend its tailspin towards 1.1420 or even 1.1350 remains to be seen and hinges on the risk aversion in the market. As soon as risk aversion gives way to a greater risk appetite, the euro may find the strength to recover some of its losses.

The same applied to the British pound, which fell victim to increased risk aversion in the market and dropped towards $1.32. As long as the cable remains below 1.33 we focus on a lower target at 1.3180/70. On the topside, we see a current resistance at 1.3350. For sterling bears, Tuesday has been a very profitable trading day with our short signal providing twice a good profit.

The focus now turns to U.S. data such as the GDP report, scheduled for release today at 12:30 UTC. Greater attention, however, will be paid to the U.S. NFP report Friday. Today’s ADP Employment Change (12:15 UTC) could provide a foretaste of what to expect on Friday.

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 2018 Maimar-FX.

www.maimar.co

Lackluster Price Development While Focus Remains On Syria

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Dear Traders,

Geopolitical tensions have been on the lighter side yesterday but the situation remains fragile.

As long as the risk of military conflict between Russia and the U.S. in Syria remains high, we may see a lackluster price development in the market which provides little profitable trading opportunities. Traders should therefore maintain a cautious approach.

The euro traded with a downward tilt following relatively dovish ECB minutes. The minutes highlighted the appreciating euro as a cause of concern for the economic outlook in the Eurozone, as well as the risk of trade conflicts. While we anticipated short-term bullish sets after a test of either 1.23 or 1.2250, the price action in the EUR/USD remains more or less range bound despite the primary bullish trend.

Technically speaking, we now expect the euro to trade between 1.2380 and 1.2250. If the euro drops below 1.2280 it could be headed for a test of 1.2250/20. Whether we will see some more volatile (and hopefully more profitable) market movements in the Forex market will depend on the market’s risk appetite for currencies.

The pound sterling caught a bid and rose back above 1.42 following a test of the potential support level at 1.4145. We now expect the GBP/USD to trade within an upward trend channel between 1.43 and 1.4190.

The only piece of economic data today will be the release of the University of Michigan Sentiment at 14:00 UTC.

With the focus being on news on Syria, traders should stay alert to possible changes in sentiment but as long as the risk appetite among investors is low, trading might be quiet.

We wish you a nice and peaceful 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/

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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.

www.maimar.co

 

 

 

 

Geopolitical Tensions Lead To Risk-Aversion In The Market

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Dear Traders,

Yesterday’s U.S. inflation data and March FOMC minutes took a backseat to geopolitical tensions between the U.S. and Syria. U.S. President Trump warned Russia of incoming airstrikes on Syria for the Assad regime’s suspected use of chemical weapons. The prospect of U.S. military action against Syria have led to broad-based risk aversion in the market with Gold benefiting from its reputation as a safe-haven investment.

From a technical perspective there was nothing to gain for day traders in the Forex market with the U.S. CPI data and FOMC having only a limited impact on yesterday’s price action amidst the risk-off mode in the market.

As long as the risk of military conflict between Russia and the U.S. in Syria remains very high, we may see a lackluster price development in the market which provides little profitable trading opportunities.

Looking at the technical daily chart in both major currency pairs we see that near-term momentum is deep in overbought territory which is why we are looking for upcoming pullbacks.

EUR/USD: A drop below 1.2330 could open the door for accelerated bearish momentum towards 1.23 and 1.2250. However, given the overall uptrend buyers may swoop in at lower levels following a potential pullback. On the topside, the euro would need to take out the 1.24-hurdle to spark fresh bullish momentum towards 1.2430 and 1.2470.

Euro traders should keep an eye on the ECB minutes which are due for release today at 11:30 UTC.

GBP/USD: The pound refrained from stabilizing above 1.42 and dropped back towards 1.4160. We now expect a lower support zone to come in between 1.4120-1.4080. A current resistance is however seen at 1.4270.

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

 

Sluggish Market Conditions Persist Amid Geopolitical Tensions

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Dear Traders,

Risk aversion and the liquidity drain ahead of the Easter holiday are hobbling the market. Tuesday’s best performer, however, was the British pound which soared to a high of 1.2494. The pound sterling benefited from a weakening U.S. dollar, which suffered some losses amid geopolitical tensions. The U.S.’s recent tougher stance created a new round of risk aversion in the market. However, the longer-term outlook for the dollar is still positive, including higher interest rates from the Fed while dollar bulls are likely to return to the market after the Easter break.

GBP/USD

The bullish movement has stalled near 1.25, a level that is considered a short-term resistance for the currency pair. The pound could possibly extend its gains to 1.2510/15 before we see a stronger correction. A break above 1.2525 however, could open the door for further bullish momentum, driving the cable towards the higher resistance zone around 1.2550/85. A current support is seen around 1.2430.

The U.K. Labor Market report is scheduled for release at 8:30 UTC and could have an impact on the price action. At the same time, Bank of England Governor Carney will speak at an event in London.

EUR/USD

The euro rose to a weekly high of 1.0630 but the currency pair’s price action is still confined to a narrow trading range. For breakout traders there was nothing to gain amid this subdued price development. The situation could persist until the French presidential election on April 23 as investors remain cautious ahead of that trend-setting event. For the time being we expect the euro’s price development to be limited to a range of 1.0650 and 1.0575.

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 2017 Maimar-FX.

www.maimar.co

 

 

 

Risk-Off Mode Before Trump’s Inauguration

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Dear Traders,

Yesterday’s trading was not to our liking and euro traders in particular, had to struggle with loss-making price swings. A trading idea’s success often depends on the details and so we finally had to record losses with our short entry in the EUR/USD mainly because we have set our profit target 5 pips too low. However, although such days are challenging they are part of trading.

The euro tested the 1.06-support which proved able to withstand yesterday’s downward pressure. For the euro to ignite fresh bearish momentum traders should now wait for prices below 1.0580. On the upside, the 1.0750-level remains interesting and may limit potential gains in the EUR/USD. A break above 1.0760 however, could prompt bulls to buy euros towards 1.08 and 1.0850.

Meanwhile, the ECB announcement proved to be a non-event for traders as Mario Draghi refrained from commenting on interesting topics such as tapering, Trump or Brexit. With no changes to the ECB’s monetary policy course and the lack of new statements the meeting was of minor importance.

The pound sterling traded firmly above 1.2280 while gains have been capped at 1.2340. Only during the Asian session the pound was finally able to overcome the 1.2350-level. We will now focus on a break above 1.2370 which may drive the pound towards 1.2440. Above 1.2460 we see a next hurdle at 1.25. Sterling bears shall however focus on important support levels at 1.22 and 1.2150. If the pound drops below these levels we expect accelerated bearish momentum.

Traders should keep an eye on the U.K. Retail Sales report due at 9:30 UTC which could have a short-term impact on the pound.

Risk-off mode in the market before Trump’s inauguration 

Investors stayed on the sidelines in view of the market uncertainties. The dollar rally faded as market participants remember that there is a high degree of uncertainty surrounding the unpredictable Trump administration. Only time will tell what the new U.S. president has to offer.

Traders will look to Trump’s inauguration speech for further details that may shape the dollar’s outlook over the coming months. We expect high volatility in the markets when the speech is due at around 17:00 UTC. Let’s be surprised.

We wish you good trades and 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 2017 Maimar-FX.

www.maimar.co

 

 

Risk-Aversion Dominates The Market Ahead Of Major Risk Events

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Dear Traders,

The U.S. dollar received less attention as investors turned risk-averse in the light of the latest twist in the U.S. election, causing uncertainty about the outcome of the looming vote. The euro still remained within a narrow trading range and none of our entries was triggered Monday. In order to expect an increase in momentum we now wait for an upside break above 1.0980 or, on the other side, a downside break below 1.0935.

Unlike the non-moving euro, the British pound rose to a high of 1.2249 as Bank of England Governor Mark Carney announced that he will remain in the role until 2019. Carney’s decision to stay at the BoE was seen as a positive for the U.K. even though the pound remains vulnerable to further losses in the medium term. The GBP/USD trades sideways between 1.2275 and 1.21 ans as long as there is no breakout of this range we will have to wait.

The U.K. PMI Manufacturing is scheduled for release at 9:30 UTC but this report is unlikely to have a dramatic impact on the pound.

More important will be the ISM Manufacturing index, due for release at 14:00 UTC which should affect the performance of the U.S. dollar provided that the report surprises to the upside.

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

 

 

 

Listless Price Development On Growing Risk-Aversion

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Dear Traders,

The current market environment leaves much to be desired and given the listless price development it remains difficult for traders to take advantage of the muted market conditions. Even though the market should be repricing the prospects for higher interest rates in the USA, investors became far more risk-averse and showed reluctance to invest. So we will have to wait for an increase in risk appetite among investors in order to benefit from larger market movements and new trends.

Market participants await U.S. data on housing today for clues on the health of the economy. In the meantime, Fed policy makers continue to reinforce the likelihood of imminent rate increases with Fed President Bullard saying that he doesn’t see the U.K.’s vote on EU membership influencing the FOMC meeting that will be held the week before the referendum. Traders are currently pricing in a 30 percent chance of a rate hike in June and a 48 percent chance for a July hike. The focus could thus be on strong economic data, such as U.S. New Home Sales, scheduled for release at 14:00 UTC.If data fails to impress the dollar could weaken.

Before the U.S. data, U.K. Public Finances (8:30 UTC) and the German ZEW Survey (9:00 UTC) are scheduled for release.

Technically, the EUR/USD remains confined to a narrow trading range between 1.1250 and 1.1180. Let’s wait and see whether momentum accelerates after a break above or below this range.

The British pound ended the day unchanged against the U.S. dollar. We see a current resistance at 1.45 whereas a lower bound could currently be at 1.44.

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 2016 Maimar-FX.

www.maimar.co

 

 

Risk-Aversion Leads To Sideways Trends

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Dear Traders,

There is not much news to report on the currency market. The performance of both major currency pairs showed only little consistency Thursday, although we saw a slight shift towards the U.S. dollar. However, any attempts to sell both euro and cable have not been paid off. The unsteady fluctuations can be attributed to risk-averse investors who stayed at the sideline as market-moving data is lacking.

The gathering of  the four Federal Reserve chiefs Janet Yellen, Ben S. Bernanke, Alan Greenspan and Paul Volcker did not deliver any new insights into the Fed’s guidance. Yellen said “We are coming close to our assigned congressional goal of maximum employment”, even though she still sees some slack remaining in the U.S. labor market.

With no market-moving news we expect both currency pairs to trade sideways within the frequently discussed price levels. The only piece of economic data scheduled for release today will be U.K. Industrial and Manufacturing Production numbers (8:30 GMT). If data comes in weaker than forecast, the pound could drop below its current support at 1.4045. The focus will then shift to the 1.40-barrier and in case of a break below 1.3985 GBP could make a move towards 1.3920. Any pullbacks, however, could be limited until 1.4110 and 1.4150.

Have a nice weekend.

Daily Forex signals:

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