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More To Lose Than To Gain Amid Liquidity Drain

Dear Traders,

With many U.S. market participants being on holiday for a long weekend, there was not much consistency in the performance of the U.S. dollar and given the unsteady fluctuation there was more to lose than to gain. With liquidity running short we recommend traders not investing much or doing a trading break until market liquidity stabilizes next week.

The euro was little changed and refrained from trading any higher than 1.0585. On the downside, it marked a fresh low at 1.0518 which was much to the displeasure of short traders as our short entry was triggered and quickly stopped out. We expect the euro to trade between 1.0610 and 1.0540 today whereas a break above 1.0615 may drive the euro higher towards 1.0640 or even 1.0660. Below 1.0540 we see chances of accelerated bearish momentum towards 1.05 and 1.0480.

The trading range in the GBP/USD narrowed and breakouts are becoming more likely in the near-term. Sterling traders should keep an eye on the U.K. GDP report scheduled for release at 9:30 UTC. Any surprises may boost the price action in the cable.

As the US rests we do not expect big market movements but nonetheless the U.S. Advance Goods Trade Balance due at 13:30 UTC might be worth watching.

Have a beautiful and relaxing weekend.

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After The ECB Is Before The ECB

Dear Traders,

As expected, the European Central Bank kept rates unchanged but it also refrained from making any changes to its asset-purchasing program for now. ECB President Mario Draghi merely reiterated that the ECB has the ‘full mandate’ to redesign QE, leaving the door open for additional stimulus. The market’s reaction to the announcement was thus rather subdued. The euro peaked at a high of 1.1327 but was not able to hold onto its gains. We see a resistance zone between 1.1350 and 1.14 and as long as the euro remains below that zone we maintain a neutral stance in the EUR/USD. If the euro drops below 1.1220 we see a higher likelihood of falling prices towards 1.1150.

The British pound tumbled below 1.33 but ended the day virtually unchanged against the U.S. dollar. In a nutshell, there was not much to be gained for daytraders. U.K. Trade Balance is scheduled for release at 8:30 UTC but we do not expect the report to have a major impact on the pound.

The market still lacks momentum and within that low-volatility environment we advise traders to take profits at smaller targets and secure weekly profits.

Have a wonderful 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