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Prepare For Corrections Around U.S. CPI And FOMC Minutes

Dear Traders,

The U.S. dollar continued its recent weakness ahead of today’s U.S. CPI numbers. Subsequently, the EUR/USD was accompanied by a bullish tilt and rose towards 1.2380. Long traders in the euro were thus able to book a good profit by trading our long entry.

It will now be interesting for traders of the EUR/USD as the currency pair could be primed for a technical breakout. If the euro rises above 1.2370/80 we see chances of an extended upward move towards 1.2430. A significant break below 1.2350, however, could shift the short-term bias in favor of the bears with lower targets at 1.2330 and 1.2310. A break below 1.23/1.2290 could even alter the current sentiment from bullish to bearish.

The British pound stabilized above 1.4150 against the dollar and now faces the 1.42-barrier. A break above 1.4225 could lead to further strength towards 1.4270. Bears in the GBP/USD should, however, pay attention to a significant break below 1.4080, which could drive the pair towards 1.4025.

Today, the focus will return to economic data and the outlook for U.S. consumer prices (due for release at 12:30 UTC). Later in the day we have the FOMC minutes scheduled for release, so there could be some volatile movements around these releases. Bear in mind that the Federal Reserve is optimistic concerning further rate hikes this year, so the minutes could underline that positive outlook which would be dollar-positive. In other words, prepare for corrective movements around the CPI and FOMC release.

Apart from U.S. data, sterling traders will watch the U.K.’s Industrial Production numbers due for release at 8:30 UTC, while euro traders will listen to a speech of ECB President Mario Draghi at 11:00 UTC.

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We wish you good trades and many pips!

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No Love For The U.S. Dollar On Valentine’s Day

Dear Traders,

There was no love for the U.S. dollar on Valentine’s day, so the greenback ended up losing ground against the euro and pound despite better-than-expected U.S. inflation data. As expected, the U.S. CPI report had a major impact on the dollar, driving it sharply higher right after the report came out above expectations. The dollar rally did not last long, however, as stocks began to trade higher and that better atmosphere resulted in a sell-off of the dollar.

In general, even if yesterday’s CPI did beat estimates, the inflation data seems unlikely to change the pace of Fed tightening. Therefore, we may see continued dollar weakness in medium-term time frames.

Both EUR/USD and GBP/USD launched sharp recoveries after marking fresh supports.

EUR/USD: The euro dropped to a low of 1.2275 before bears were handing over control to the bulls. That shift in sentiment has sent the euro sharply higher and we now see the single currency trading around 1.2480 following yesterday’s 2-percent-surge. For traders it will now be interesting whether the euro is able to take out the next hurdle at 1.2485 before it faces the resistance zone between 1.2515- 1.2540. A break of these barriers might be possible but given the absence of fresh catalysts bullish momentum might be running out of steam. A current support is still seen at 1.23.

GBP/USD: The pound broke above 1.40 after finding support at the round number of 1.38. For bullish momentum to accelerate the pound will need to break above 1.4070. A higher target could then be at 1.4150. As long as 1.38 holds, chances are in favor of the bulls.

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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.

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U.S. Inflation Print To Impact The Dollar’s Price Action

Dear Traders,

We got what we were looking for in the GBP/USD: A breakout of the cable’s narrow trading range even though that breakout has proved not as strong as we had hoped for. Sterling bulls attempted to push the pound above 1.39 but bullish momentum was somewhat muted following the U.K. January inflation print which came in at 3 percent, better than the 2.9 percent forecast ahead of the release. Overall, rising prices and economic fundamentals create conditions for a stronger currency even if Brexit risks are the main concern for investors.

Technically speaking, we now expect the GBP/USD to trade with a slight upward tilt heading towards 1.3970/80. If the pound is able to take out the 1.40-hurdle again, we will focus on higher targets around 1.4160. A current support is seen around 1.3740.

The EUR/USD broke above 1.2340 and is currently heading towards 1.24. If it breaks significantly above 1.2410, we may see another leg up towards 1.2470. As long as 1.23 holds, chances are in favor of the bulls. Euro bears should better wait for prices below 1.2280.

Today’s focus turns to the U.S. inflation figures due at 13:30 UTC. The U.S. Consumer price index probably increased at a moderate pace in January. Investors will pay particular attention to that report, which is why potential surprises in the inflation print could have a significant impact on the dollar.

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 2018 Maimar-FX.

www.maimar.co

British Pound Experiences Roller Coaster Ride On Soft Brexit Speculation

Dear Traders,

The biggest story in the market on Thursday was the British pound which experienced a roller coaster ride. The GBP/USD initially dropped to a low of 1.3121 from where a sharp reversal started, quickly pushing the pound towards 1.33. The reason for the sharp price rise was a report, saying that Europe’s top negotiator may offer the U.K. a two-year Brexit transition period to stay in the single market. Any signs in favor of a soft Brexit are generally positive for the pound, while a hard Brexit is seen as the worst scenario for the U.K. economy. Until only recently the official line had been that there was no major progress in the Brexit discussions.

While Brexit remains the main driver of the pound, traders should keep an eye on the technical picture. GBP/USD is still below 1.33 and once that hurdle is significantly taken out, we could see the pound further rising towards 1.3350 and 1.3450. Sterling bears should however wait for prices below 1.3150.

 

The euro traded range-bound between 1.1870 and 1.1825. ECB President Draghi’s speech failed to have an impact on the euro’s price action. We now expect the EUR/USD to trade between 1.1930 and 1.1830. Sellers should keep an eye on prices below 1.1780 that could lead to further losses towards 1.1730.

Most attention will be paid to the U.S. Consumer Price Report scheduled for release at 12:30 UTC today. Around the release time of this report we expect higher volatility in all USD crosses.

We wish you good trades and a wonderful weekend.

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

View our daily signal alerts http://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: 1.19 Could Be A Make-It Or Break-It Level

Dear Traders,

Yesterday was dominated by a weakening U.S. dollar, which extended its slide against the euro and British pound after the market interpreted the FOMC minutes as slightly dovish. While Fed policy makers see another rate hike this year, many issued concern that low inflation was not a temporary phenomenon. The priced-in probability of a December rate hike is still unchanged around 75 percent but if Fed officials believe that inflation could stay low for longer, then they might be less inclined to stay committed to a steep rate hike path in the future. The minutes were neither more dovish nor more hawkish but market participants interpreted the increasing concern about inflation as dollar-negative.

The focus now shifts to tomorrow’s U.S. Consumer price report, which, if positive, could boost the dollar.

EUR/USD

The euro rose steadily up to a high of 1.1878 and the linear movement seems quite an atypical performance of the market. The 1.19-level could now serve as a ‘make-it’ or ‘break-it’ barrier. If the euro is able to break significantly above 1.1910, we expect further gains towards 1.20 and possibly even the September high of 1.2092. If the price, however, remains below the 1.19-barrier, the euro could start giving up some gains and may fall back towards 1.1780. Moreover, we bear I mind that the RSI index approaches overbought territory, a situation that could limit near-term gains in the euro.

ECB President Mario Draghi will hold a speech today at 14:30 UTC in Washington and if he touches on monetary policy the euro could respond to his comments with volatile swings.

The GBP/USD traded range-bound between our entry levels at 1.3235 on the upper and 1.3175 on the lower side. During the Asian trading session, the pound sterling was finally able to break above 1.3235 and rose to a high of 1.3265. As mentioned in previous analysis, we expect a next resistance near 1.33 and this level could be crucial for the future price development in the cable.

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

 

Profitable Trading Month June

Dear Traders,

The euro and British pound extended their rallies and further strengthened against the struggling U.S. dollar. With the European Central Bank and the Bank of England gradually shifting the tone toward a more hawkish stance, the euro and pound benefited against the greenback.

The EUR/USD approaches 1.15 and if U.S. key inflation data due at 12:30 UTC misses, we could see at least a test of the crucial 1.15-level. The PCE deflator is considered the Federal Reserve’s favorite inflation gauge and analysts expect the annual rate slowed to 1.4 percent.

The EUR/USD trades currently at 1.1445 and if the pair passes 1.1470, we could see the euro heading for a test of 1.15 and possibly even 1.1550. Sellers of the EUR/USD should either enter at higher resistance levels, taking advantage of potential pullbacks or wait for a decline below 1.1370.

Euro traders should keep an eye on the Eurozone Consumer Prices scheduled for release at 9:00 UTC.

The GBP/USD was able to hold above 1.30, at least for the time being. If the price breaks above 1.3060 we expect the cable to head for 1.3120. A crucial resistance is however seen at 1.3240/50. As long as the pair remains above 1.29, there is no cause for concern for sterling bulls.

The U.K. GDP is scheduled for release at 8:30 UTC.

Having gained a very good profit this month by our daily signals we will sit back today and secure our monthly profits. Have a good weekend.

Daily Forex signals:

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

View our daily signal alerts http://www.maimar.co/category/daily-signals/

Subscribe to our daily signal service http://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