Daily Trading Forecast
0
0
Dollar Recovery Pauses
Wed, Aug 6 2008, 10:30 GMT
by Swiss e Trade Strategy Team
The summer recovery of the Greenback came to a halt yesterday after the release of the Fed’s current monetary policy. It was not that the latter revealed anything new - the Fed intends to keep current interest rates at 2% - it was what the market has read into the wording, i.e. some concerns that the monetary policy could be too lax. Anyway, the dollar was ready to take a breather in its recovery move, considering the now overbought situation.
In late Asian and early European trading, the majors more or less reflected the consolidation/correction in the upward movement. See details below for today’s trading. The markets are awaiting tomorrow’s BoE and ECB statements on monetary policy and, with no important data releases today, we expect a fairly quiet market.
Intraday Market Outlook for Day Traders
EUR / USD
The EUR / USD, currently at 1.5476 and back from its recovery in Asian and European trading, is on the move to test the 1.5450 level again. We doubt that this level will be decisively broken today and rather see a range of approximately 1.5450 to 1.5500.
GBP / USD
Consolidation is moving on for the GBP / USD, now trading at 1.9540 and entering the major support zone between current prices and 1.9450. Due to the still oversold position, we see a higher trading range, though, between 1.9530 and 1.9570 for today.
USD / CHF
The U.S. dollar tried hard again to break the important 1.0550 level against the Swiss franc but so far failed to do so and is currently trading at 1.0521. The trading range we see for today is narrow, with support at 1.0500 and resistance at 1.0540.
USD / JPY
After another fierce attack on the resistance line at 108.50 in early European trading, the dollar was successful this time, overriding this important level against the yen. This level is now support, which we expect to hold in today’s trading. The pair is currently trading at 108.56.
Published on Wed, Aug 6 2008, 10:32 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
Swiss e Trade AG
| Genferstrasse 21, CH-8002 Zurich
http://www.swissetrade.com/ | info@swissetrade.com
Legal disclaimer and risk disclosure
Swiss e Trade AG shall not be responsible for any loss arising from any investment based on any recommendation, forecast or other information herein contained. The contents of this publication should not be construed as an express or implied promise, guarantee or implication by Swiss e Trade that clients will profit from the strategies herein or that losses in connection therewith can or will be limited. Trades in accordance with the recommendations in an analysis, especially leveraged investments such as foreign exchange trading and investment in derivatives, can be very speculative and may result in losses as well as profits, in particular if the conditions mentioned in the analysis do not occur as anticipated.Interested in forex trading? forex brokerage firms!
GET CASH BACK FOR YOUR TRADES! Learn more about the Pip Rebate Program
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.
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.
©2009 "FXstreet.com. The Forex Market" All Rights Reserved.
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.
©2009 "FXstreet.com. The Forex Market" All Rights Reserved.