Euro And Cable Correct Amid Low Volatility

Welcome to a new trading week.
EUR/USD: As indicated last week, there was a bullish breakout pattern and bulls took advantage of this opportunity against the backdrop of a weakening U.S. dollar, driving the euro above the 1.08 threshold. We were able to pocket some good gains in the euro last week. Where could the euro be headed now? The euro has rallied strongly since September with little correction. However, since the markets never tend straight-lined in a particular direction, we expect a (necessary) correction soon. A current support could come in at around 1.06. However, if 1.08 holds, bulls would have to focus on a short-term target area at around 1.1180.

GBP/USD: Last week's oscillations left much to be desired and unfortunately, there were more loss-making false breakouts than profitable price breakouts. But these phases are also part of day trading. Let's see how it continues this week. Meanwhile, the upward trend is intact. Above 1.2350, we could see a retest of the 1.24 area which could result in an upward movement to 1.26. An important support is currently seen at 1.20.

DAX: The index showed its strength and took off the 15000-hurdle. A few good weekly gains were achieved last week. If the DAX remains above 14500, we are looking towards the 16000 threshold.
We do not expect high volatility at the beginning of the week. It is the Martin Luther King Day in the U.S. and the markets remain closed for the holiday. Traders should therefore focus on smaller profits.    
 
Our trading ideas for today 16/1/23:
EUR/USD
Long @ 1.0875
Short @ 1.0815
GBP/USD
Long @ 1.2260
Short @ 1.2210
DAX® (GER40)
Long @ 15160
Short @ 15090

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.