FXstreet.com

Daily Trading Forecast

24

0

Dollar Unimpressd by Wall Street's Post−Election Blues

Thu, Nov 6 2008, 11:05 GMT
by Swiss e Trade Strategy Team

Swiss e Trade AG


At least here the financial world was in order in this otherwise cock-eyed year, with Wall Street dropping typically the day after a Democratic victory. The dollar reacted at the same time with some gains, but only during the European morning showing some weakness. So whatever happens in stock markets, the basic outlook for the Greenback remains intact: currently in a correction/consolidation phase and, once this so far young phase has ended, the U.S. currency will begin another rally, based on interest rate expectations, when the U.S. economy is on better footing than it is now. In early afternoon, the BOE and ECB will decide whether or not to lower interest rates (13:00 and 13:45 CET). The markets expect both banks to lower rates by 0.50%.

For today’s trading, we see the slight selling tone for the USD continuing in the major pairs, as explained in detail below. There are no real market movers among the economic data scheduled today, which allows the concentration on pure market- and chart-technical factors.

by George Clement

Intraday Market Outlook for Day Traders

EUR / USD

The renewed weakness of the pair yesterday found its turnaround in early European trading, now in an upmove towards resistance at 1.2980 and currently trading at 1.2916. We see this upmove testing the 1.2980 level, where again a downswing can set in bringing the pair down to support at 1.2830.

GBP / USD
Cable continues to trade within the range of 1.6150 on the upside and 1.5800 on the downside. Currently priced at 1.5935, there is a bid tone for the pair which could well continue in today’s trading until resistance at 1.6150 is again reached. The selling mood we see setting in from there could be established not sooner than in late trading hours today.

USD / CHF
The dollar is still trading within the range of 1.1560 / 1.1740 against the Swiss franc and is currently in an upmove and priced at 1.1665. We see this bid tone for the dollar continuing, after a downward correction to the 1.1630 level, soon to set in. In later trading, the 1.1740 resistance level might be tested again.

USD / JPY
Still trading near a solid support zone between 97.50 and 97.00, we do see much more downside risk for the dollar against the yen. Currently priced at 97.75, a test of the 97.50 support is possible before the upper end of today’s projected trading range at 99.20 is tested.


Archive

Swiss e Trade AG  | Alfred-Escher-Strasse 26 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.

Related reports

FX View - Headline unemployment rate creates dollar shocker by Interactive Brokers LLC
Fri, Nov 6 2009, 18:41 GMT

Forex Daily Overview - USD mixed, unemployment rises to 10.2% by Easy Forex
Fri, Nov 6 2009, 18:31 GMT

Forex Daily Analysis - USDJPY is moving towards support level at 89.55 by Investija.com
Fri, Nov 6 2009, 14:35 GMT

Forex Technical Report - U.S. Markets Brace for Jobs Data by ForexHound.com
Fri, Nov 6 2009, 13:29 GMT

Forex Technical Report - Dollar Trading Lower Ahead of U.S. Jobs Data by ForexHound.com
Fri, Nov 6 2009, 13:19 GMT

eurusd, gbpusd, usdchf, usdjpy

View All

Related content

Forex: EUR/USD: Euro post weekly gains
FXstreet.com | Fri, Nov 6 2009, 22:49 GMT

CURRENCIES: Dollar Dips Vs. Yen As Jobs Data Have Fed On Hold
Dow Jones | Fri, Nov 6 2009, 22:14 GMT

U.S. markets ended with small gains, up for the week; Dollar mixed
FXstreet.com | Fri, Nov 6 2009, 21:32 GMT

Forex: GBP/USD: Cable hovering around 1.6600
FXstreet.com | Fri, Nov 6 2009, 20:34 GMT

CURRENCIES: Dollar Dips Vs Yen As Jobs Data Has Fed On Hold
Dow Jones | Fri, Nov 6 2009, 20:25 GMT

eurusd, gbpusd, usdchf, usdjpy

View All

Interested in forex trading? forex brokerage firms!


MG Financial Group
Contact the broker/FDM
Open a demo account
FOREX.com
Contact the broker/FDM
Open a demo account
CitiFX Pro
Contact the broker/FDM
Open a demo account
Capital Market Services, L.L.C.
Contact the broker/FDM
Open a demo account
Alpari (US), LLC
Contact the broker/FDM
Open a demo account

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.