Will Quarter-end Flows Benefit The U.S. Dollar?
The U.S. dollar has gained some ground against other peers. Positioning ahead of the U.S. employment report on Friday is, however, not the only reason for the greenback’s latest advance. Covid-19 flareups are a reminder that the fight against the pandemic is still far from over which is why the dollar firms on safe haven demand.
Moreover, today is not only the last day of June but also the end of the second quarter which means that we could see quarter-end flows possibly benefiting the dollar trade. Investors seem cautious to add more risk at quarter-end and traders should expect profit taking.
From a fundamental perspective, we will keep an eye on the Eurozone’s core inflation rate scheduled for release today at 9:00 UTC which could impact the euro and in the afternoon the ADP employment change at 12:15 UTC for a potential effect on the dollar.
EUR/USD: Below 1.1870 we expect further losses towards 1.1810. A short-term resistance is seen at 1.1950.
GBP/USD: Below 1.3815 and further below 1.3785 we may see a fall towards 1.3720. A short-term resistance is however seen at around 1.3880.
DAX: We were able to profit on a larger upward move toward 15750. We see a next higher target at 15950 – provided that 15500 holds and 15810 breaks.
Daily Forex Signals:
If you are keen to know where we put Take-Profit and Stop-Loss, if we trade on a specific day or not and how we manage open positions, subscribe to our signals
EUR/USD
Long @ 1.1915
Short @ 1.1890 Open sell position…
GBP/USD
Long @ 1.3865
Short @ 1.3835 Open sell position…
DAX® (GER30)
Long @ 15690
Short @ 15640 Trade has hit profit target
- Subscribe to our daily signal service
We wish you good trades!
Any and all liability of the author is excluded.
Copyright © All Rights Reserved 2021 MaiMarFX.
Follow us on social media:
