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U.S. Dollar weak, Pound Jumps to Fresh Highs – Next Targets in Focus

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The biggest story in the Forex market was the rise of the British pound which jumped to the highest level since April 2018. Falling coronavirus cases, the U.K.’s successful vaccination drive and a neutral stance of the Bank of England could bolster the pound’s uptrend in the short-term. However, traders who are betting on the pound’s long-term strength should be careful since the pound is behaving like a risk-on currency, making it vulnerable to a reversal.

Some strategists are already becoming more bearish on the pound, saying that trade disruptions, a widening current account deficit and under-priced political risk around another Scottish independence referendum are providing a headwind for the pound.

In short-term time-frames we saw GBP/USD testing the 1.39-level, bringing a higher target of 1.3970 in focus. However, the currency pair remains in overbought territory, making a correction more likely than a linear continuation of the pair’s uptrend. A current support is seen at around 1.3750.

The anti-risk U.S. dollar depreciated Friday. With the pace of coronavirus outbreaks slowing further, investors are banking on U.S. government spending and the vaccine rollout to boost the economic recovery, even though new variants of the virus are threatening to temper the outlook.

The EUR/USD was able to stabilize above 1.21 after Friday’s decline below 1.21 has proved short-lived as bearish momentum faded. As long as the currency pair trades above 1.2080, we will focus on a test of 1.2170-80.

The DAX seems to be on its way towards a test of 14200. If the index breaks above that level, we may see a continuation of the upward movement towards 14400. A current support is however seen at 14000.

U.S. markets are shut for President’s Day today, so we might have a quiet start to the new week.

Upcoming key events this week:

  • EU finance ministers will discuss the bloc’s current economic situation and outlook on Tuesday.
  • FOMC minutes from the January meeting are due Wednesday.

We wish you good trades!

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The British pound dropped below 1.36 and slid to an intraday low of 1.3541 after England entered its third lockdown. U.K. Prime Minister Boris Johnson ordered a national lockdown starting from Monday night until mid-February.

Elsewhere, Germany is set to extend its lockdown.

GBP/USD gave up some of its recent gains after bulls failed to push the pair above 1.3705. A next important support area will be around the 1.35-level and if that area proves to hold, chances are in favor of another leg up with a next target at 1.3740. However, bulls will first need to overcome the 1.3650-level in short-term time frames.

EUR/USD reversed shy of 1.2310 and finally ended the trading day virtually unchanged. Bulls in this pair will continue to focus on a break above 1.2310 while bears may wait for a break below 1.22.

The DAX experienced a roller-coaster ride Monday and finally gave up on 13900 and dipped slightly below 13600. We continue to focus on a trading range between 14000 and 13400.

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EUR/USD

Long @ 1.2280

Short @ 1.2225

GBP/USD

Long @ 1.3615

Short @ 1.3535

DAX® (GER30)

Long @ 13760

Short @ 13640

 

Results 2020:

December 2020: +318 pips

November 2020: +75 pips

October 2020: +432 pips

 

We wish you good trades!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2021 MaiMarFX.

www.maimar.co

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EUR/USD And GBP/USD Trade Lower In Thin Trading

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Dear Traders,

Market conditions on Monday were quiet with U.S. markets being closed for President’s Day holiday.

EUR/USD: The euro dropped to a low of 1.2369 in thin trading. We currently see the possibility of further losses towards 1.2345, provided that the euro remains below 1.24. A break above 1.2415 could, however, spur some bullish momentum towards 1.2435 and 1.2460.

The German ZEW Survey Expectations are scheduled for release at 10:00 UTC but this report is not expected to have a major impact on the euro’s price action.

GBP/USD: The pound sterling traded with a downward tilt Monday but bearish momentum came to a halt slightly below 1.3960. As long as the pound remains unable to stabilize above the 1.40-level, we prepare for further losses towards 1.3920 and 1.3895. If sterling bulls are able to push the pair above 1.4020 we could possibly see a run for 1.4050 and 1.4070.

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 2018 Maimar-FX.

www.maimar.co

 

USD Weakness Sends EUR And GBP Soaring

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Dear Traders,

While the House passed its version of tax bill Thursday, the U.S. dollar was little impressed and plunged during the Asian session amid low trading volumes.

The EUR/USD traded higher in the early European trading hours and we now focus on the 1.1850-barrier, which could prove crucial in terms of further bullish momentum. If the euro is able to stabilize above 1.1850, the next target is 1.1905. Sellers should, however, wait for a break below 1.1720 in order to sell euros towards 1.1670 and 1.1580.

Most attention will be paid to a speech of ECB President Mario Draghi today at 8:30 UTC, which could affect the euro’s price action.

The British pound soared on new Brexit optimism. After the U.K. has shown a “willingness to conclude a positive outcome” according to German MEP Manfred Weber, the EU is growing more confident that the current Brexit impasse will be broken and that exit talks will progress. While there might be some room for further gains in the GBP/USD, we bear in mind that as long the pair remains range-bound between 1.3340 and 1.30 there is no directional bias.

We wish you a nice weekend.

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 2017 Maimar-FX.

www.maimar.co

EUR/USD And GBP/USD (Still) Favor Downtrend

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Dear Traders,

The pound fell after yesterday’s Bank of England testimony from Governor Mark Carney was less hawkish than hoped. While Carney sticks with his view that policy adjustments would likely be made in the coming months he said the central bank is making contingency plans for a “hard” Brexit. Despite the U.K. inflation print of 3 percent that is likely to force the BoE to hike rates in the near-term the pound is very sensitive to Brexit headlines. In the absence of progress, the pound remains vulnerable to losses but if negotiations between the UK and EU are proceeding constructively, the pound could gain some ground.

The U.K. Labor Market Report is scheduled for release at 8:30 UTC and could have an impact on the pound’s price action.

The euro depreciated against the U.S. dollar but found some halt at 1.1735.

European Central Bank President Mario Draghi is scheduled to speak at 8:10 UTC at the “Structural Reforms in the Euro Area” conference in Frankfurt. If he touches on monetary policy the euro could respond with volatile swings.

As for the greenback, there are no major driving forces at the moment. The priced-in probability of a Federal Reserve December rate hike increased to 80.2 percent while the focus will be on President Donald Trump’s choice for the next Fed chair, which will be unveiled before November 3. If Yellen stays in her post, it could be dollar-positive. If, however, Powell takes over the office from Yellen the dollar could fall since he favors gradual rate hikes.

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

British Pound Takes Breather On Carney Comments

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Dear Traders,

Monday has been a quite challenging trading day for traders of the EUR/USD and GBP/USD. While the British pound declined against the U.S. dollar after Bank of England Governor Carney’s comments were interpreted as more dovish following last week’s MPC statement, we have shot all our powder and finally missed out on the profitable bearish movement in the GBP/USD.

Carney reinforced the BoE’s view that the rate hike cycle in the U.K. will be “limited and gradual” and acknowledged that there was still clear concern over the health of the economy amid Brexit. His comments weakened the pound in the short term. GBP/USD traded consolidated and fell towards 1.3460. We now see a lower support at 1.34/1.3380 and if the pound drops below that level we may see a correction towards 1.33. On the topside, the 1.3620-level remains unbroken and sterling bulls may focus on a bullish break of that resistance level in order to buy pounds towards 1.38.

The euro traded sideways between 1.1970 and 1.1915. We now focus on price breakouts either above 1.1990 or below 1.1935. The German and Eurozone ZEW Survey are both scheduled for release at 9:00 UTC today and may have a slight impact on the euro.

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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

 

 

 

Profitable Trading Week: Secure Your Profits And Lean Back

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Dear Traders,

Things turned out differently than many market participants had hoped. Almost everyone was expecting a very dovish tone from European Central Bank President Draghi but what we got, was a neutral Draghi who talked up the EU economy, saying officials will reassess stimulus in autumn. His remarks that the economy is finally enjoying a robust recovery outweighed concerns about the rise in the common currency. The market fully ignored Draghi’s assertion of the need for continued accommodation and pushed the euro to its strongest level in 23 months.

Investors will have to get used to the prospects of less ECB stimulus even though no decision has been made on timing or form of any tapering yet. Draghi only signaled the ECB would discuss its bond purchase program in the autumn.

The euro rallied to a fresh high of 1.1658 and many analysts already expect the euro rising toward higher targets at 1.17 and even 1.20. Time will tell.

The cable tumbled back below the 1.30 level as initial Brexit talks did not produce a breakthrough on any of the key issues between the UK and EU. Our short entry at 1.3015 has proved highly profitable and gave us a nice profit while using it twice.

For our part, since we have gained a good profit this week we will not reinvest our weekly profits and will thus do a trading break today. Have a good 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 2017 Maimar-FX.

www.maimar.co

 

 

 

All Eyes On U.S. CPI Data

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Dear Traders,

The FX market on Thursday can be described as rather muted. As expected, GBP/USD traded higher but the bullish momentum was limited to a high of 1.2955. The cable now needs to overcome the 1.30-barrier in order to encourage sterling bulls for a test of 1.3020/45 . EUR/USD traders however, sold euros below 1.1420 but yesterday’s downward movement was limited to a low of 1.1370. A break below 1.1380 has thus failed to ignite bearish momentum toward 1.13.

Today might be more interesting for traders as U.S. Consumer Inflation due at 12:30 UTC will be closely scrutinized. Yellen believes that the current downtrend in inflation will be temporary and if she is right and we see upbeat inflation figures, the greenback will rise. However, there is a risk that inflation could slow again in June and this would increase the pressure on the U.S. dollar. If the forecast is correct and inflation slowed to 1.7 percent, it is the fourth consecutive month of deceleration and the weakest reading since November 2016.

Let’s be surprised while we prepare for higher volatility around the release of CPI data.

We wish you good trades and a beautiful weekend.

If you want to know how to exactly trade EUR/USD and GBP/USD including an appropriate money management per trade and day, sign up for our daily signal service here.

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 2017 Maimar-FX.

www.maimar.co

 

 

 

Forex Market Is Fairly Quiet In The Absence Of Market Movers

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Dear Traders,

While concerns over French elections have disappeared after the market-favorable Macron victory, the euro’s response was anything but enthusiastic. Rather, the single currency favored lower price targets near 1.0915 after having rejected the 1.10-resistance. Euro traders should now pay attention to the 1.0890-support level which may prove to be the new lower bound of the euro’s current upward trend channel. If the 1.0890-support gives way to bearish pressure, the focus shifts to a break of 1.0850 and further 1.0820. On the topside we will pay attention to a potential re-test of 1.10 which could result in a sustained bullish breakout. In the absence of catalyst to spur further momentum we expect the EUR/USD to trade between 1.10 and 1.0895.

The GBP/USD did not move much and traded within a narrow 55-pips trading range. Ahead of the BoE’s quarterly inflation report on Thursday sterling traders may refrain from taking any risks, which is why we anticipate sideways movements between 1.30 and 1.2860. In short-term time frames we expect a next support at around 1.29, whereas a lower resistance could be at 1.2975.

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 2017 Maimar-FX.

www.maimar.co

 

 

 

Can The Euro Hold Onto Its High Price Level?

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Dear Traders,

The euro broke above Monday’s spike high at 1.0923 but gains were capped at 1.0950, at least for the time being. The question now is whether there is still room for further gains. Looking at the 4-hour and daily chart we see that the EUR/USD is in overbought territory, a situation that increases the likelihood of upcoming corrections. We see a next hurdle at around 1.0970 followed by a stronger resistance at 1.10. As long as the euro remains firmly below 1.10 we prepare for corrective movements towards 1.09, 1.0840 and possibly even 1.0750.

The British pound rose towards the upper bound of its recent sideways trading range but still refrained from an upside break above 1.2850. As noted in previous analysis, sterling bulls better wait for a significant break above 1.2860 in order to buy pounds towards 1.30. A break below 1.2730 however, could send the pound tumbling towards 1.2650.

There are no major economic reports scheduled for release today, so the price action could hinge on U.S. President Trump’s tax-reform speech. Trump is expected to unveil a tax plan that includes a cut of the corporate rate to 15 percent from 35 percent. If he delivers we could see some renewed strength in the U.S. dollar.

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