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Euro And Cable Trend Higher And Higher And Now…Maybe Lower?

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Dear Traders,

There was nothing stopping the British pound from further rising against the U.S. dollar. While we still anticipate near-term corrections in the strong performance of the GBP/USD, we need to pay attention to the solid uptrend. The pound was able to stabilize above 1.40 and if it extends its gains above 1.4060 we could possibly see a run for 1.4170. On the bottom side, we expect some fresh support coming in at 1.3950. However, traders should bear in mind that corrections are inevitable following the strong performance of the recent days and weeks. One look at the weekly chart below is enough to realize that the cable approaches overbought territory and thus faces the risk of pullbacks.

Meanwhile, the U.S. dollar suffered another setback against its major counterparts. U.S. President Trump’s decision to put tariffs on imported solar panels and washing machines may stoke protectionism and fears of trade wars.

The euro trended upwards, contrary to expectations, ahead of tomorrow’s ECB meeting. We still see the risk of profit-taking in the EUR/USD given the possibility of dovish comments from ECB President Draghi at tomorrow’s ECB’s press conference. For now, we expect the EUR/USD to trade between 1.2380 and 1.2250.

Important economic data that could have an impact on today’s price action:

8:30 EUR German PMI Report

9:30 UK Labor Market Report

15:00 USA Existing Home Sales

(Time Zone UTC)

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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.

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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.

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EUR/USD Forecast Met; Focus Now On Further Upside Momentum

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Dear Traders,

We got what we were looking for in yesterday’s analysis: A breakout in the EUR/USD. The euro broke out of its narrow trading range and surpassed the 1.1445-barrier. Our long entry has thus proved a success. We are now looking for additional upside in this pair and look at higher targets at 1.15, 1.1530 and 1.1580. With the EUR/USD gradually approaching overbought territory we also anticipate pullbacks which may drive the euro back toward 1.1415. With the euro remaining above 1.1460 however, there is no cause for concern for euro bulls, at least for a while.

Federal Reserve Chair Janet Yellen gives testimony today and tomorrow with market participants looking for guidance on when the Fed could start shrinking its balance sheet. Ms. Yellen is due to start her prepared remarks at 12:30 UTC followed by Q&A at 14:00 UTC. Yellen’s testimony is the prime monetary policy event for dollar traders and so we expect higher volatility in all USD crosses.

The British pound depreciated against the U.S. dollar Tuesday and fell toward a low of 1.2830. The catalyst for the decline was a speech by Bank of England Deputy Governor Broadbent who refrained from commenting on interest rates. Broadbent instead warned of Brexit risks and hence the pound weakened as the market has hoped that there would be anything hawkish in his speech.

From a technical perspective, we now expect the GBP/USD to trade with a tailwind since the pair refrained from a break of its recent downtrend channel. Based on that channel, it could be time for a pullback and hence upcoming bullish momentum toward 1.2920. Let us be surprised.

The U.K. Labor Market report is scheduled for release at 8:30 UTC and could have an impact on the pound. Signs of stronger job growth may encourage the BoE to start normalizing monetary policy. Stronger job/wage growth figures would thus have a positive impact on the pound sterling.

We wish you profitable trades for today!

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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.

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Sluggish Market Conditions Persist Amid Geopolitical Tensions

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Dear Traders,

Risk aversion and the liquidity drain ahead of the Easter holiday are hobbling the market. Tuesday’s best performer, however, was the British pound which soared to a high of 1.2494. The pound sterling benefited from a weakening U.S. dollar, which suffered some losses amid geopolitical tensions. The U.S.’s recent tougher stance created a new round of risk aversion in the market. However, the longer-term outlook for the dollar is still positive, including higher interest rates from the Fed while dollar bulls are likely to return to the market after the Easter break.

GBP/USD

The bullish movement has stalled near 1.25, a level that is considered a short-term resistance for the currency pair. The pound could possibly extend its gains to 1.2510/15 before we see a stronger correction. A break above 1.2525 however, could open the door for further bullish momentum, driving the cable towards the higher resistance zone around 1.2550/85. A current support is seen around 1.2430.

The U.K. Labor Market report is scheduled for release at 8:30 UTC and could have an impact on the price action. At the same time, Bank of England Governor Carney will speak at an event in London.

EUR/USD

The euro rose to a weekly high of 1.0630 but the currency pair’s price action is still confined to a narrow trading range. For breakout traders there was nothing to gain amid this subdued price development. The situation could persist until the French presidential election on April 23 as investors remain cautious ahead of that trend-setting event. For the time being we expect the euro’s price development to be limited to a range of 1.0650 and 1.0575.

Daily Forex signals:

Additional daily and long-term entries are available for subscribers.

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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 In A Politically Driven Market

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Dear Traders,

In summary, we can say that it has been a very profitable trading day in a politically driven market. While the Brexit and Trump themes are market-dominating there is only one thing that matters to traders: The profit at the end of the trading day and yesterday’s profit was quite good. Sterling traders were able to generate a profit of 100 pips by our long entry and also euro traders did not go home empty-handed, pocketing a good gain by trading twice yesterday’s long entry.

What happened in the market? Two things came together. Firstly, the U.S. dollar has lost some of its strength after Donald Trump said that the dollar is already ‘too strong’, posing a challenge to the economy. This prompted investors to take profits on their long dollar positions.  Secondly, U.K. Prime Minister Theresa May has calmed the markets as a ‘hard’ Brexit may not be as hard as expected. While she said that the U.K. “cannot possibly” remain within the European single market, pursuing a hard Brexit, May confirmed that the final deal would be put to the vote in Parliament. The fact that the parliament will approve the final Brexit deal is positive for sterling due to hopes that the deal must be good in order for the parliament to approve it.

GBP/USD

The pound climbed to a high of 1.2415 following May’s speech. True to the motto “The trend is your friend”, there are chances that the pound may extend its recent gains to 1.25 provided that sterling is able to take the hurdle at 1.2430. However, after such a strong price movement we also anticipate corrections. A next support is now seen at 1.23. If the pound falls back below 1.2270 we expect a lower support to be at 1.22.

The U.K Labor Market report is scheduled for release today at 9:30 UTC and if wages confirm a steady growth, sterling bulls might push the cable to higher levels.

EUR/USD

The euro formatted a recent uptrend channel and based on that channel, further gains may be limited to the upper trend line at 1.0730. We expect a next resistance area to be at 1.0750 whereas a current support is seen at 1.06.

Eurozone Consumer Prices are scheduled for release at 10:00 UTC today but we do not expect this report to have a significant impact on the euro.

The most important piece of economic data will be the U.S. Consumer Price report due for release at 13:30 UTC. In case the report comes in with an upside surprise the dollar will regain some strength.

Daily Forex signals:

Additional daily and long-term entries are available for subscribers.

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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

 

 

 

Pound With A Tailwind While The Euro’s Downtrend Ran Out Of Steam

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Dear Traders,

Tuesday’s best performer was the British pound which rose towards its next resistance zone at 1.2320/50. The pound was supported by better than expected U.K. CPI data, limiting speculation that the Bank of England will need to ease monetary policy further. After bouncing off the 1.2330-resistance level we recommend sterling bulls to wait for a break above 1.2375 in order to buy GBP towards 1.2425. However, if the pound drops back below 1.2220, we expect increased bearish momentum towards 1.2170/50.

The U.K. Labor Market report is scheduled for release today at 8:30 UTC and any changes in the headline figures could have a significant impact on the GBP/USD.

The EUR/USD however, refrained from trading any lower than 1.0970. On the other hand, the pair was also not able to take the hurdle at 1.1030 which is why the euro remained confined to a narrow sideways trading range. If the euro falls below 1.0940 the bias could change in favor of the bears, driving the pair lower towards 1.0830.

While there are no economic reports from the Euro-zone today the price action could be determined by dollar flows. However, U.S. Housing data (12:30 UTC) and the Fed’s Beige Book (18:00 UTC) might be of secondary importance for traders.

Daily Forex signals:

Additional daily and long-term entries are available for subscribers.

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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 2016 Maimar-FX.

www.maimar.co

 

 

 

Pound Drops On Gloomy Economic Prospects, Will Employment Data Brighten The Mood?

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Dear Traders,

While the euro still lacked a clear direction the British pound showed some larger moves on Tuesday after U.K. inflation data came in unchanged at 0.6 percent, disappointing analyst forecasts of a rise to 0.7 percent. Sterling fell more than 100 pips from our short-entry after consumer prices held steady in August. The question therefore arises whether the Bank of England believes that there is a need for a further rate cut to stimulate growth and push inflation nearer towards the central bank’s 2 percent target. The BoE is expected to keep interest rates unchanged at tomorrow’s meeting, but policymakers could still cut them further by year-end. The pound therefore remains a sell on rallies.

The U.K. Labor Market report is scheduled for release at 8:30 UTC today and may help paint a clearer picture of the situation of the U.K. economy in the aftermath of Brexit.

GBP/USD

Sterling traders should pay close attention to the next support area at 1.3160/50. A significant break below that level could send sterling towards the next support at 1.31 from where it could bounce back. With sterling trading above 1.3150 we anticipate a slight correction towards 1.3250 and possibly even a renewed test of 1.33.

chart_gbp_usd_4hours_snapshot14-9-16

The euro remained confined to its narrow 60-pip trading range and euro traders must exercise patience. The euro would now need to break below 1.1170 to reinvigorate fresh bearish momentum. With no major economic data scheduled for release from the Eurozone, we expect the pair to continue its sideways trend between 1.1250 and 1.1170. We recommend traders to take profits at smaller targets if there are any.

Daily Forex signals:

Additional daily and long-term entries are available for subscribers.

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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 2016 Maimar-FX.

www.maimar.co

 

 

 

U.S. Dollar Regains Strength, Pulling Euro And Sterling Down

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Dear Traders,

The U.S. dollar strengthened against most of its major peers Tuesday as economic data in the U.S. signal expansion. With the latest data showing that the U.S. economy is picking up steam overall, the greenback enjoys stronger demand among investors whereas other currencies are tumbling. This trend could continue as the Federal Reserve is the only central bank which is on track to raise interest rates while other central banks are ready to ease monetary policy to steer economic growth.

On the back of renewed dollar strength the euro was forced to test the 1.10-support, which still remains intact this morning. With no major economic reports scheduled for release today, the dollar might have difficulty pulling the euro below this important support level. In addition, we see a next lower barrier around the 1.0970-level which may lend an additional support to the euro. Today’s price action could thus be oriented towards the upper and lower bound of the current trend channel. Resistances are currently seen at 1.1080 and 1.1130, whereas a crucial support could be at 1.0970.

Chart_EUR_USD_4Hours_snapshot20.7.16

The British pound broke through 1.3120 and slid towards 1.3060. Unfortunately, we had two stop-losses with yesterday’s short-entry before the pound went down, which is why we missed out on the final downward move.We are now looking for a test of 1.30 before we expect major pullbacks to occur. A current resistance is seen at 1.3150 and if sterling is able to climb above that level it could head for a renewed test of 1.32. However, given the recent dollar strength, gains might be limited in the GBP/USD.

Sterling traders should keep an eye on the U.K. labor market report, scheduled for release at 8:30 UTC. The focus will be on Average Earnings and if wages exceed expectations, the pound could be vulnerable to some upswings within its downward trend.

Daily Forex signals:

Additional daily and long-term entries are available for subscribers.

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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 2016 Maimar-FX.

www.maimar.co

 

 

Euro And Cable Benefited From Weakening U.S. Dollar

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Dear Traders,

The euro and British pound benefited from the weakening U.S. dollar, which fell sharply after U.S. Housing data slumped more than projected in March. Moreover, the euro is currently supported by speculation European Central Bank President Mario Draghi is unlikely to announce further monetary easing at the ECB meeting tomorrow. While the central bank’s easing measures start to take effect, the danger for the ECB is the currency strength of the euro, undermining the economic improvements. Draghi could therefore try to talk down the currency but since the central bank rhetoric has somewhat ceased to have effect, the euro could even extend its recent uptrend instead of being vulnerable to losses.

Ahead of tomorrow’s ECB meeting we expect the euro to range-trade between 1.1410/30 and 1.1335. Above 1.1430, upside extensions are possible until 1.15, whereas below 1.1330, the euro may fall back towards 1.1250/20.

GBP/USD

The British pound climbed above 1.44 but found a current resistance around the 1.4420-level. The U.K. Labor Market report is scheduled for release today at 8:30 UTC and should have an impact on the pound. If data surprise to the upside, sterling could extend its gains towards 1.4450 and 1.4490. However, traders should bear in mind that the currency pair trades near crucial resistance levels and reversals are becoming more likely.

Looking at the 4-hour chart we see an overall downtrend and a current consolidation phase. Prices recently fluctuated within 1.4450 and 1.4050. If GBP is able to break significantly above 1.4430/50, we could see a test of 1.45. However, if the pair refrains from trading above 1.44, we favor the downtrend and focus on lower targets at 1.4310, 1.4260 and 1.42.

Chart_GBP_USD_4Hours_snapshot20.4.16

From the U.S. we have Existing Home Sales and Crude Oil Inventories scheduled for release at 14:00 and 14:30 UTC.

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 2016 Maimar-FX.

www.maimar.co

 

 

 

FOMC Minutes Could Fail To Be A Big Market Mover

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Dear Traders,

Break-out traders who had hoped for larger fluctuations in the EUR/USD have been disappointed by yesterday’s inconsistent performance. In addition, we had a bit bad luck with our short-entry and had to give up some of our previous gains. Sterling traders, however, were able to take advantage of high volatility in the GBP/USD and gain profits in both directions.

All eyes will be on the FOMC minutes today, but it is doubtful whether the Fed meeting minutes will be a big market mover. Given the last monetary policy statement and Yellen’s latest remarks on the economy, the Fed’s stance is anticipated to be neutral to slightly dovish, which would be dollar-negative in the near-term. Looking back on the trading day of the last Federal Reserve meeting, we saw the EUR/USD trending upwards, while the GBP/USD was trending downwards. While we do not expect today’s FOMC minutes to have a major impact on the currencies, we expect the euro trade higher against the greenback ahead of the minutes, whereas the cable could be vulnerable to further losses.

For the British pound, the most important piece of data will be today’s U.K. labor market report scheduled for release at 9:30 GMT. While the unemployment rate is forecast to show a decline, the focus will be on wage growth, which is expected to expand at a slower pace. If Weekly Earnings fall short of expectations, we could see sterling tumbling towards 1.42 and 1.4150.

GBP/USD

The cable broke below its recent trading range and currently tests the lower trend line of its secondary uptrend channel. If the pair breaks below 1.4265 and further 1.4240 next lower targets are seen at 1.4208, 1.4150 and 1.4130. On the upside, the currency pair would need to break significantly above 1.4370 and further 1.4410 in order to rally towards 1.4475 and 1.4550.

Chart_GBP_USD_4Hours_snapshot17.2.16

 

Important economic data for today:

9:30 UK Labor Market Report

13:30 USA Housing Data & PPI

19:00 USA Fed Minutes

(Time zone GMT)

Daily Forex signals:

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