Daily Trading Forecast
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USD Buoyed by Returning Risk Appetite
Thu, Jul 24 2008, 10:54 GMT
by Swiss e Trade Strategy Team
The steady performance of US financial stocks and falling oil prices have put some more confidence into the US Dollar. Is the risk appetite really coming back? Not consistently yet, we would argue. So far the recovery in the stock markets could only be described as short covering, more vigour has to set in to deny the bear market. And the oil price has only receded from recently quite overheated levels.
In late asian and early european trading, amidst revived bearish talk especially for the EURO,
the USD gained upward momentum versus the majors, even in the GBP/USD pair, where yesterday`s BoE statement for a tightening of its monetary policy came as a surprise to the markets. For today`s trading, with the overall market sentiment in favour of the USD, we
project new trading ranges in the majors as described below.
Intraday Market Analysis for Day Traders
EUR/USD
The fall of the pair in late asian trading continued in the early europen session, bringing the EUR/USD to its first support point at 1.5660, where it is currently trading. We expect the new, lower trading range for today to be within 1.5700 and 1.5600 , the next lower support point.
GBP/USD
After clinging to its handle 2.0000 level in late asian trading cable broke in early european trading and is currently at 1.9970. The next support we see at 1.9840, which has to be broken first, before further downward momentum can emerge. Due to the already heavily oversold siutation we forecast a recovery first, to the 1.9900 level.
USD/CHF
The USD is fighting hard to overcome the important 1.0400 hurdle against the Swiss Franc. Currently back at 1.0378 it so far failed to do so. We expect further attacks on this landmark which we see finally broken in today`s trading, alowing the USD/CHF to enter a higher trading band between 1.0400 and 1.0450. Expect the development to be slow though due to lack of interest in this pair because of the swiss holiday season.
USD/JPY
Unimpressed by the USD`s strength against other majors, the pair remains in its narrow trading zone reached yesterday, between 107.60 and 108.00, currently at 107.63. With the obvious lack of volatility and volume we only see some upward movement from current levels and do not expect the resistance at 108.00 being broken in today`s trading.
Published on Thu, Jul 24 2008, 11:00 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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Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.
Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
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