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Daily Trading Forecast

Euro Weakest as Dollar Moves Up

Wed, Oct 1 2008, 10:01 GMT
by Swiss e Trade Strategy Team

Swiss e Trade AG

The Greenback continued its now, technically-speaking, confirmed uptrend and is just consolidating the gained territory in these European morning hours. In the recent upmove, the euro was the weakest among the majors, with the market expecting the ECB to reduce interest rates by a wider margin tomorrow.

In today’s trading, we prefer to buy the USD on weakness at the specific points in the major pairs as outlined below. Note the 16:00 CET scheduled anouncment of the U.S. ISM Manufacturing Index for September, expected to be unchanged or only slightly lower (the widely-watched index continously showed lower readings since March this year).

by George Clement

Intraday Market Outlook for Day Traders

EUR / USD
Trading as low as 1.4009 in Asian trading, the pair recovered and then consolidated in early European hours and is now at 1.4147. We are sellers at the 1.4190 level in today’s trading and expect the recent lows slightly above the 1.4000 level to be tested again.

GBP / USD
Cable tested yesterday’s lows at 1.7701 again in early European trading and is now at 1.7830. We see further upmoves limited at 1.7890 and expect another drop, testing the 1.7700 level again.

USD / CHF
The dollar consolidated its gains in early European trading and is currently at 1.1175. We expect another attack on the 1.1250 resistance level in today’s trading, eventually breaking it on the upside.

USD / JPY
With very low volatility, the dollar is currently trading at 106.10 against the yen, consolidating its massive gains of yesterday in this European morning. We see that consolidation going on for some time in today’s trading and expect another upmove in later hours to the recent highs at 106.50 and beyond, testing the 107.00 resistance level.

Published on  Wed, Oct 1 2008, 10:02 GMT