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Daily Trading Forecast

USD Sideways − Testing Long−Term Resistance

Fri, Oct 3 2008, 10:02 GMT
by Swiss e Trade Strategy Team

Swiss e Trade AG

The new highs the Greenback reached yesterday in the majors are at long-term resistance levels now. We expect these levels to hold in the days to come, giving the USD time to digest its new surge. The major pairs showed some of the correction moves in early European trading already, reflecting the overbought condition of the U.S. currency.

We expect the sideways market to continue today, with trading ranges offering enough room for further downward corrections for the USD, as described in detail below. Note the U.S. Non-Farm Payrolls and the unemployment rate, both for September, to be released at 14:30 CET.

by George Clement

Intraday Market Outlook for Day Traders

EUR / USD
Having reached a low of 1.3747 yesterday, the pair started to recover in Asian trading and continued that move in this European morning, now trading at 1.3865. We expect that trend to continue in today’s trading, up to around prices of 1.3940. Downward moves will find support at 1.3810.

GBP / USD
Currently trading at 1.7705, cable continued yesterday’s recovery in today’s Asian and early European trading. We see the upside for today limited at 1.7780 and the downside at 1.7640.

USD / CHF
The dollar is in a downward correction against the Swiss franc, currently trading at 1.1305, and soon testing the support level at 1.1290. We see this level being broken in today’s trading and the testing of the next support at 1.1250, which we expect to hold. Upside moves are limited at the 1.1350 resistance.

USD / JPY
The downward correction of the dollar against the yen is in its third day now, with a current price of 105.30. We see a further sloping trading range for today, between 105.45 on the upside and 104.70 on the downside.

Published on  Fri, Oct 3 2008, 10:03 GMT