The anti-risk US dollar appreciated against other currencies amid warnings of a broad-based repricing in the market. Following the dramatic price swings in cryptocurrency assets, central bankers warned that speculation in stocks and cryptocurrencies could pose a threat to financial stability, derailing the global recovery. Investors fled into safe haven assets and the greenback benefited. From an objective point of view, however, it is no surprise that policymakers intervene as they do not want to give up their monetary monopolies while cryptocurrencies begin to compete with regular currencies.
The overall performance of cryptocurrency could serve as a compass for changes in market sentiment and moves in risk trends.
The economic docket this week thins out with potential catalysts lacking. While we do not expect big movements, we will keep tabs on the technical picture and important price barriers.
EUR/USD
As long as the euro is unable to overcome the 1.2250-barrier, chances are in favor of the bears with the focus being on a sustained break below 1.2150. Lower supports are seen at 1.2050 followed by 1.20. Above 1.2250, the focus shifts to 1.2290 and further 1.2350.
GBP/USD
GBP/USD's February-high at 1.4243 remains an obstacle and as long as we do not see prices above 1.4270, we brace for a correction towards 1.40.
DAX
The DAX is heading towards 15500 again. We see a next target at 15580 before a potential bullish breakout happens. A current support is however seen at 15100.
We went long this morning at 15490 and took profit at 15530.
Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.