Posts

British Pound Takes Breather On Carney Comments

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.

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

 

 

 

Profitable Trading Week: Secure Your Profits And Lean Back

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/

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

 

 

 

All Eyes On U.S. CPI Data

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/

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

 

 

 

Forex Market Is Fairly Quiet In The Absence Of Market Movers

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/

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

 

 

 

Can The Euro Hold Onto Its High Price Level?

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

 

Market Returned To Risk-Off Mode

Dear Traders,

Risk appetite among market participants has subsided following the risk-on rally in the wake of French elections. While we had hoped for some further momentum in the markets, traders were disappointed by the poor market situation and consequently none of our daily signal entries was triggered. We may see some increase in volatility as soon as tomorrow as investors are turning their attention to U.S. President Trump who will unveil his tax plan on Wednesday. According to a White House official, he will call for cutting taxes for individuals and lowering the corporate rate to 15 percent. Trump’s announcement could strengthen the U.S. dollar.

The euro traded sideways within a tight trading range between 1.0880 and 1.0835. We are now looking for small breakouts either above 1.0880 or below 1.0845. However, with market participants pulling back on EUR/USD positioning we have no other choice than waiting for the market sentiment to improve.

The British pound refrained from showing any larger price fluctuations and remained steady above 1.2770, at least for the time being. A current support level is seen at 1.2745 whereas a short-term resistance remains intact at 1.2830/40.

U.S. Consumer Confidence is scheduled for release at 14:00 UTC and is the only noteworthy report 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 2017 Maimar-FX.

www.maimar.co

 

 

 

Euro Steady Ahead Of French Elections – The Calm Before The Storm?

Dear Traders,

Both euro and British pound ended yesterday’s trading day virtually unchanged against the U.S. dollar after the euro had risen to a high of 1.0777 whereas the cable had rejected the 1.2850-resistance. The limited upward movement was due to a slight increase in the dollar after U.S. Treasury Secretary Steven Mnuchin spread optimism that the Trump administration is close to bringing forward major tax reform. He said the White House will unveil a tax plan “very soon”.

Meanwhile, the euro held steady above 1.07 after a police officer was killed in Paris just days before France’s presidential election starts. The incident could have an impact on the outcome of the first round of the election on Sunday since the Islamic State is claiming responsibility for the attack.

Polling is suggesting it will be a close call between independent Emmanuel Macron and the National Front’s Marine Le Pen. The two leading candidates will run off in a winner-takes-all contest on May 7.

EUR/USD- The calm before the storm?

The euro performed quite resiliently ahead of the most tightly contested elections in France.

On a technical basis, we will focus on a current trading range between 1.0740 and 1.0680. A renewed break above 1.0740 may boost bullish momentum until a fresh high at 1.08. We would speak of a bullish breakout in case the euro climbs above 1.0820. A higher target could be at 1.0950. However, below 1.0680/70 we could see the euro tumbling towards 1.0640 and 1.06. A break below 1.0590 could reinvigorate fresh bearish momentum.

The British pound was unable to take the hurdle at 1.2850 and dropped back below 1.28. As long as the GBP/USD remains trading between 1.2860 and 1.2770 we do not pay much attention to the cable’s price action. A break below 1.2770 would shift the focus to lower targets near 1.27 and 1.26 whereas it would need a sustained break above 1.2860 to spark bullish momentum towards 1.2950.

The U.K. Retail Sales report is scheduled for release at 8:30 UTC and will draw traders’ attention.

We wish you good trades and 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 2017 Maimar-FX.

www.maimar.co

 

 

 

Euro And Cable Consolidate Following Strong Moves

Dear Traders,

The British pound gave up some of the gains it had made on Tuesday and fell back below 1.28. As long as the pound remains above the 1.26-mark, the recent drop could be considered a correction within the recent uptrend. We will now focus on a break above the short-term resistance at 1.2860. Once that level has been breached to the upside, sterling could make a run for 1.2950. A short-term support could however be at 1.2750 and 1.2720.

Bank of England Governor Mark Carney is scheduled to speak at an event in Washington today at 17:30 UTC and his comments could have an impact on the pound, provided that he refers to the BoE’s monetary policy.

The euro held above the 1.07-level and market participants seem to be shying away from taking any positions in the EUR/USD ahead of France’s presidential election this weekend. From a technical perspective, we see a symmetrical triangle in the 4-hour chart which could predict small breakouts.

Above 1.0720 the euro could rise towards 1.0760, whereas a break below 1.07 may send the euro towards 1.0675. However, given the risk aversion in the market we do not expect larger fluctuations within the next 48 hours.

 

From the U.S., we have the Philadelphia Fed Index due for release at 12:30 UTC but we doubt that this report will have a major impact on the greenback.

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

 

 

 

Sluggish Market Environment Continues

Dear Traders,

Euro and sterling traders had no reason for rejoicing, even though we saw a slight increase in volatility on Wednesday. Yet there were no breakouts in both major currency pairs and while the cable rose to a high of 1.25, the currency pair was unable to overcome that hurdle, at least until now. The euro – how could it be different – remained sideways between 1.07 and 1.0630. With elections looming in France, investors are risk-averse and refrain from making any new investments in the euro until the political situation becomes more stable. This explains the moderate price development.

The FOMC minutes did little to alter the market’s view on the Fed’s 3-hike total policy outlook in 2017. While minutes restated an optimistic outlook for the U.S. economy, the discussion on shrinking the U.S. central bank’s balance sheet later this year drew most attention. There is speculation that the balance-sheet reduction could damp the need for further tightening from the Fed. The U.S. dollar weakened in response to the Fed’s comments on its balance sheet policy.

From a technical view, there is nothing new to report. We are still waiting for sustained breakouts in both EUR/USD and GBP/USD. With no fresh impetus to the market we expect the cable to remain between 1.2520 and 1.2430, whereas trading the euro only becomes interesting if the pair breaks above 1.07 or below 1.06.

Apart from a speech of ECB president Mario Draghi in the morning at 7:00 UTC, the U.S.-China summit will be of high importance.

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

 

 

 

Will Payrolls Inject Momentum To The Sluggish Market?

Dear Traders,

Overall, yesterday’s trading was not to our liking with the euro remaining confined to its three-week range between 1.0640 – 1.05 and the cable trading choppily in between our daily entry levels. In a nutshell, there was more to lose than to win from an unsteady market environment.

The euro benefited from a positive assessment of the euro-area economy while the ECB’s monetary policy stance has not fundamentally changed. The ECB statement came in as expected while Mario Draghi said downside risks to the euro zone economy were less pronounced. Even if the next change from the ECB will be towards removing accommodation and not adding stimulus, it is still too early for a shift in monetary policy.

The EUR/USD rose to a high of 1.0615 and that was it. The price development remained relatively moderate and major market moves are still lacking. The short-term bias has slightly changed in favor of the bulls but it is the appetite for U.S. dollars that will dictate the price action and thus, traders are eagerly waiting for the March Non-farm Payrolls to determine direction.

The GBP/USD was moving sideways between 1.2195 and 1.2135. Unfortunately, our entries were placed on top and below that sideways trading range. Therefore we have been struggling with false breakouts. U.K. Industrial production is due for release at 9:30 UTC but this report will take a backseat to the highly anticipated NFP report.

Today’s U.S. jobs report is the last top event risk before the Fed meeting next week. A healthy report is widely expected but the expectations are very high. Hence, there is a risk of disappointment, which would carry a higher impact than an upbeat report.

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