Daily Trading Forecast

Tight Ranges Dominate the Majors

Mon, Jul 21 2008, 10:43 GMT
by Swiss e Trade Strategy Team

Swiss e Trade AG


Late asian and early european trading brought no new direction in the markets, rather a continuation of last weeks low volatility. What disturbes us is that the recovery of the Greenback versus the cable was rather wimpish, and hardly noticed in the EUR/USD pair. The sharply lower oil prices and a not so bad as expected performance of US financial stocks should have helped the USD a lot more.

For today`s trading we expect the listless summer mood of the market to continue, with the ranges specified below. Note the 16.00 CET release of US June 2008 early indicators for June, where only a slight deterioration is expected.

Intraday Market Outlook for Day Traders

EUR/USD

Currently trading at 1.5892, right below the 1.5900 resistance point. We continue to see support at 1.5790 which is creating a very tight trading range for the pair.

GBP/USD

Cable has failed in all its attempts to trade above the important 2.0000 level and is currently trading at 1.9966. As for market action we have seen more offers than bids of this pair in early european trading. We expect the 2.0000 level to hold in today`s trading with a slight downward bias but no real trend is evident.

USD/CHF

The USD is currently priced at 1.0202 against the Swiss Franc, amidst listless trading. We locate support at 1.0015 which we expect to hold and see resistance at 1.0350. In today`s trading we only expect sideways movement in a quiet market.

USD/JPY

With Japan closed for a holiday there was not much interest in the USD/JPY pair, which currently trades at 1.0659. It has come off its high of 1.0700 seen in asian trading today and has shown so far this morning a slight downward bias. We caution traders to wait for clearer trends to develop.








Published on  Mon, Jul 21 2008, 10:47 GMT

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