Daily Trading Forecast
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Dollar Strength after Yesterday's U.S. Retail Sales Report
Wed, May 14 2008, 10:43 GMT
by Swiss e Trade Strategy Team
After yesterday’s unexpectedly positive U.S. retail sales reports, the dollar gained strength in Asian and early morning European trading. We think, however, that the upward potential of the USD is more or less exhausted for today, with the exception of the EUR/USD pair where we see still some further downwards risk in today’s trading. For details, see our analyses for the major currencies below.
Intraday Market Outlook for Day Traders
EUR / USD
After a sharp drop to 1.5395 in early morning European trading, the EUR / USD pair is now recovering somewhat. Currently trading at 1.5435, a further recovery could lead to the next resistance point at 1.5470, where we would enter short positions. We see a first target at 1.5360 with a stop at 1.5510. See chart below.
GBP / USD
The GBP / USD has broken a major support at 1.9500 and has fallen to 1.9385, where it is currently trading, leaving the market in an oversold situation right now. Any recovery would likely be stopped at 1.9500. A new downward movement could emerge again; however, we don’t expect this to happen today and have no specific forecast for today.
USD / CHF
The USD / CHF is about to test its resistance level at 1.0620 for the third time within two weeks and is currently trading at 1.0583. However, we doubt this level will be broken today, because the market is in an overbought situation already. We have no specific forecast for today.
USD / JPY
The USD / JPY is also about to test its major resistance level, at 105.60, for the third time and is currently trading at 105.20. The market is ready to move into higher ground as well, but we don’t expect this to happen today. We have therefore no specific forecast today.
EUR / USD Chart
Published on Wed, May 14 2008, 10:47 GMT
Archive
- Still No Change in Tight Forex Ranges after ECB's Rate Decision
Published On Fri, Jul 3 2009, 10:01 GMT - Do Not Expect Too Much of Today's ECB Rate Decision
Published On Thu, Jul 2 2009, 09:40 GMT - Forex Remains Sideways
Published On Wed, Jul 1 2009, 10:06 GMT - Major Pairs: Oversold / Overbought Does it for the Moment
Published On Tue, Jun 30 2009, 10:06 GMT - Death of the Dinosaurs
Published On Mon, Jun 29 2009, 10:05 GMT
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