Good morning traders. As noted last night in the Asian FX Update (FX Insight & FX Alerts clients) we saw some decent short-term moves that reflected the overall forecast laid out here yesterday: mainly a firmer Dollar Index (DXC).
The moves have been modest but for clients with a short-term view, some pips were on offer.
Note: the Intra-Day FX Forecast highlights price direction and likely price targets/stops designed for traders looking at trading opportunities over the next several hours. These are not official trade recommendations, merely guidelines and forecasts
The moves have been modest but for clients with a short-term view, some pips were on offer.
Note: the Intra-Day FX Forecast highlights price direction and likely price targets/stops designed for traders looking at trading opportunities over the next several hours. These are not official trade recommendations, merely guidelines and forecasts
North American Short-Term Outlook:
- Dollar Index (DXC): Cautiously Bullish no change from yesterday: while I believe the August 8th low marks the end of Wave ii, the price action higher has been pretty tame and not too convincing. However, give the move the benefit of the doubt. Above 81.60-81.75 suggests a new leg higher is getting underway.
- EUR/USD: Cautiously Bearish no change from yesterday: with overnight prices creating overlap below 1.3390 it suggests that prices are beginning to get some traction lower. 1.3331, the August 5th low seems like the next target. Taking it one step at a time. Prices may not quite get to the 1.3331 level on this move, but should be tagged soon. allow for a modest correction higher as prices are short-term oversold.
- USD/CHF: Neutral from yesterday: Above .9065/70 should allow for higher levels. Prices did move nicely higher overnight for about 20-30 pips, certainly enough for short-term oriented clients to cash in. However, at this point I am not clear on the wave count (yes, still bullish overall) in the short-term but favor a modest move lower.
- GBP/USD: Neutral last week's target at 1.6754 was largely achieved last week. Now I see a modest correction higher towards 1.6806-1.6837
- EUR/GBP: Neutral to Bearish getting stopped out last week was annoying, but the fact is, the move higher off the July lows is corrective - it is now a matter of isolating the completion of the correction higher. No easy task. Looking for a move below .7935 to suggest a new leg lower is getting underway.
- EUR/NOK: Bearish Monday's push lower seems to be the catalyst we needed to see for sustained lower prices. Near-term target seen at 8.2112 but I like the idea of getting short for a longer-term trade into a correction towards 8.2750'ish
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