Posts

Risk-Off Mode In The Market

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Dear Traders,

It seems that market participants are shying away from any risk right now.This risk aversion leads to unsteady and trendless markets with limited swings. Also, we have a U.S. market holiday on Wednesday which is why market participants may prefer to stay on the sidelines until Thursday. Thus, we didn’t see larger swings Monday with both EUR/USD and GBP/USD remaining confined to relatively tight trading ranges.

EUR/USD: Looking for short-term price breakouts, we are keeping tabs on a break either above 1.1680 on the upside or a break below 1.1570 on the downside.

GBP/USD: Looking for short-term price breakouts, we are keeping tabs on an upside break either above 1.32 or a downside break below 1.3090.

The only piece of economic data today will be the U.K. Construction PMI due at 8:30 UTC. From the U.S., we have Durable Goods Orders at 14:00 UTC but none of these reports is expected to trigger larger fluctuations in the market.

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

 

Trendless And Volatile Price Swings Are A Torment For Traders

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Dear Traders,

We can say that yesterday was a black day for day traders with both major currency pairs fluctuating directionless sideways, wiping out monthly profits. The worst performer was the cable, which was on a roller coaster after the highest U.K. court ruled the government needs parliamentary vote to trigger the countdown to Brexit. While that decision soften the government’s Brexit plans, it was not enough to push the pound toward higher price levels. In contrast, the pound responded with a slide towards 1.24 due to the fact that Scotland, Wales and Northern Ireland did not need to have a say before talks are triggered. This should be some comfort to Prime Minister Theresa May. For traders however, yesterday’s price action proved to be anything but profitable and amidst a high volatile trading environment we had to struggle with false breakouts and choppy price swings.

The GBP/USD still faces a hurdle at 1.2545 and once that barrier is breached on the upside we may see further gains towards 1.2590/1.26. If the pound falls however back below 1.2490 we anticipate further losses towards 1.2415 and possibly even 1.2380.

There are no major important economic reports scheduled for release today. Sterling traders may pay attention to a speech of Bank of England Governor Carney which is scheduled for 16:00 UTC.

The EUR/USD traded sideways between 1.0775 and 1.0720. In an already challenging market environment, characterized by uncertainty and volatility we had a bit of bad luck as our long entry was exactly triggered before the price reversed.

Is the euro formatting a head-shoulders pattern? In short-term time frames we see a higher likelihood of an upcoming bearish breakout provided that the euro falls below 1.0720 while it refrains to trade above the resistance area around 1.0765. Below 1.0720 it may fall towards 1.0680. Above 1.0765 the euro may extend its gains towards 1.0785/1.08.

The German Ifo Index is scheduled for release at 9:00 UTC and could have a short-term 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

 

 

 

How To Trade The Current Market? Not At All!

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Dear Traders,

How one can trade in a market where even central bankers are unable to assess the economic situation and the need for further measures? The answer is simple: It is best to not trade at all. At least, this might be the motto of the financial markets at the moment. Traders who had hoped for some profitable fluctuations following the ECB announcement have been disappointed, once again.

The new trend among policy makers is to just admit that they are uncertain about how the big themes including Brexit and other political turmoil will affect the global economy. European Central Bank president Draghi refrained from providing new insights as the central bank has no clear picture of the impact of Brexit. He admitted on Thursday that nobody can see what the consequences might be as policy makers have not enough data to evaluate the situation right now. The mood therefore remains skeptical. The next ECB meeting is on September 8 and it remains to be seen whether the central bank has a clearer picture until then.

Looking at the technical chart we would actually assume that the euro might be primed for an upside correction but given the uncertain market sentiment all predictions of further movements could be useless. We are therefore not going to refer to the technical picture today, as there is no clear trend within a low volatile market environment.

German and Eurozone PMI reports are scheduled for release at 7:30 and 8:00 UTC but these reports are not expected to have a significant impact on the euro.

The cable’s price development ended in a narrow trading range, formatting a symmetrical triangle in the hourly chart which may predict upcoming price breakouts. With prices above 1.3245 bullish engagements could be rewarding whereas a break below 1.32 could reinvigorate bearish momentum in the short-term. Market participants will focus on the U.K.PMI report due for release at 8:30 UTC.

Although the market doesn’t offer profit opportunities at the moment, we will stay on the ball and try to make the best out of the current market conditions.

Have 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 2016 Maimar-FX.

www.maimar.co