Daily Trading Forecast

USD: Consolidation on (very) low levels

Thu, Jul 17 2008, 10:59 GMT
by Swiss e Trade Strategy Team

Swiss e Trade AG


Falling oil prices and recoveries in stock markets supported the Greenback a little,but actually causing only a consolidation on levels above historic lows, allowing just a narrow trading band in asian and early european trading.

Barring sharp movements in oil or equity markets, we expect this trading range to continue in the majors for today as outlined below, since there are no significant economic data releases scheduled in today`s trading hours.

Intraday Market Outlook for Day Traders 

EUR/USD

Currently trading at 1.5868 the pair recovered somewhat from its yesterday lows at 1.5800. We see good support between the 1.5790 and 1.5800 due to buy orders located at these levels. Upside movements though are limited by the reistance zone at 1.5900.

GBP/USD

After traders took profit after the sharp rise of Tuesday to 2.0150, cable currently trades lower at 2.0030. We see a first support at 1.9960 which may be tested in today`s trading. Whether or not this level is broken will depend more on oil prices and the equity market.

USD/CHF

The dollar currently trades at 1.0160 CHF, and is holding at higher levels after a second attempt yesterday to break through parity was unsuccessful. Despite holding at these higher levels we feel prices will be capped at resistance point around 1.0185.

USD/JPY

$/Yen rose overnight in asian trading above the important 105.00 level and is currently trading at 105.15. We see a first support at 105.15 and a resistance at 1.0590 which should contain prices in today`s trading, barring any abrupt move in crude oil and equity markets.

Published on  Thu, Jul 17 2008, 11:13 GMT

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