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No Hope For Dollar Bulls?

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Dear Traders,

We welcome you to a new trading week. Last week ended with a spike high of 1.1212 in the EUR/USD while continuing U.S. dollar weakness remains the dominant market theme. The greenback still struggles to gain ground as political instability fears weigh on the Federal Reserve’s rate hike outlook. Investors fear that political chaos in the Trump administration may derail Trump’s plans for expansionary fiscal policy and thus deter the Fed from raising interest rates.

However, not all hope is lost for dollar bulls and if political uncertainties are abating, shifting the focus back to the administration’s fiscal program, the U.S. dollar could be poised for recovery. In the meantime we will mainly pay attention to the technical outlook in both major currency pairs.

The economic calendar this week is rather light in terms of market moving data. From the U.S., the most interesting pieces of data will be Friday’s GDP figures and Durable Goods Orders following Wednesday’s FOMC meeting minutes. Upbeat minutes may revive the dollar trade with market participants pricing in a more than 80 percent chance that the Fed will raise rates again in June.

The EUR/USD knew only one direction: upwards. From a technical perspective we now expect a next hurdle to come in around 1.13. Below 1.1070, however, the euro may drops towards a test of the 1.10-support.

The cable remained sideways whilst being accompanied by a slight upward tilt. We now expect the GBP/USD to trade between 1.3060 and 1.29.  A break above 1.3070 may send the pound towards 1.32.

Sterling traders should pay attention to any changes in the U.K. GDP figures, scheduled for release on Thursday.

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Euro Traders Profit From Weakening U.S. Dollar

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Dear Traders,

The U.S. dollar is taking its cue from political turmoil surrounding the Trump administration. In times of political uncertainty and unpredictability in the U.S., many investors got rid of their dollar positions which contribute to the recent dollar weakness. The euro, in return, benefited from the weakening greenback and rose towards 1.1175. There is no major resistance until 1.12, so euro bulls may tend to test that level before taking profits on euro long positions. Following the strong rally in the EUR/USD and four consecutive days of higher highs the pair finds itself in overbought territory, a fact that increases the likelihood of near-term corrections.

While we see a next hurdle at around 1.12, a break above 1.1220 could push the euro even higher towards 1.13. However, traders should now prepare for potential corrections. Current support levels are seen at 1.11, 1.1080 and 1.1020.

There are no major economic reports scheduled for release from the Eurozone but it might be worth watching ECB President Draghi‘s remarks on monetary policy when he speaks in Tel Aviv at 17:00 UTC.

The pound sterling was accompanied by a slight upward tilt, even if the 1.30-resistance level still remains unbroken. Once that level is breached to the upside, we could see sterling rising towards 1.3040 and possibly even 1.3120.

The U.K. Retail Sales report is due for release at 8:30 UTC and could have an impact on the price action in the cable. If the pound drops back below 1.2930 it could find a next halt at around 1.2870.

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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

 

 

 

Euro & Pound: Are We Finally Seeing The Long Overdue Correction?

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Dear Traders,

Trading has been quiet with the dollar-trade losing its attraction. Fed Chair Janet Yellen did not comment on monetary policy when she spoke at a conference in Washington yesterday and market participants are skeptical about whether President Trump’s pro-growth policies will pass through Congress when Republicans did not even agree on a health-care bill.

U.S. Durable Goods Orders are scheduled for release today at 12:30 UTC but given the uncertain situation in the greenback, we doubt that we will see larger market movements today.

Gains in the EUR/USD were capped at 1.08 and given the fact that the euro was unable to overcome the 1.0820-boundary significantly, we expect further losses towards 1.0730/10. Euro bears should however wait for a renewed break below 1.07, which could send the currency pair tumbling towards 1.0620. On the upside we will focus on a break above 1.0805 which could lead to a subsequent test of the euro’s resistance level at 1.0850.

From the Eurozone we have the Manufacturing PMI reports scheduled for release at 8:30 and 9:00 UTC, but these reports could be of minor importance.

The pound sterling was on a roller-coaster ride after U.K. economic data came in better than expected. The GBP/USD surged from a low at 1.2463 to a high of 1.2531 but sterling bulls were unable to hold onto that high level. A correction was in any case long overdue and so we saw the pound falling back below 1.25. We will now focus on the 1.2430-level. A break below that short-term support could send the pound lower towards 1.2390 and 1.2340. On the topside, a short-term resistance is now seen at 1.25.

We wish you good trades for today 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