FXstreet.com

Daily Trading Forecast

11

0

Dollar Stable in Lower Volatility

Wed, Nov 19 2008, 10:58 GMT
by Swiss e Trade Strategy Team

Swiss e Trade AG


Viewed from a seasonal aspect, the stability of the Greenback is astonishing. This time of the year it usually tends to weakness as year-end approaches. But market and technical factors speak a quite different language now, leading to the opposite conclusion. Although the present consolidation phase might go on for a while, it looks like the USD is preparing itself for another leap soon. But it needs a trigger for that, which we expect to be found soon in the fundamental data either from the U.S. or Europe. There is a quite a lot of market moving data scheduled for today in the U.S. as noted below - the last for this week, which will be otherwise quiet.

For today, we advocate a buy-on-weakness approach for the USD in the major pairs, with the favorable points described in the outlook for day traders below. Avoid having positions when today’s important triple data is released at 14:30 CET: U.S. housing starts, building permits and consumer prices.

by George Clement

Intraday Market Outlook for Day Traders

EUR / USD
We expect the slight selling tone for the pair to remain in today’s trading. With the EUR / USD currently priced at 1.2610, we prefer to sell above the present market, at 1.2650, while envisaging a low for today at 1.2550.

GBP / USD
With unusual stability, cable continues to trade in a very narrow trading range this European morning and is currently priced at 1.4955. We expect the higher end of the trading range at 1.4990 to be tested again today but not broken and the lower end at 1.4900 to eventually be broken on the downside later.

USD / CHF
Topping at 1.2084 in early European trading, the dollar is currently priced at 1.2074 against the Swiss franc. We expect the bid tone of yesterday and today to continue but prefer not to buy above 1.2050.

USD / JPY
The dollar stabilized further in Asian and early European trading and is currently in a slight upmove against the yen, now priced at 96.80. We see that upmove continuing today, eventually testing the 97.40 resistance zone.


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!


FOREX.com
Contact the broker/FDM
Open a demo account
ACM Advanced Currency Markets SA
Contact the broker/FDM
Open a demo account
CitiFX Pro
Contact the broker/FDM
Open a demo account
FXDD
Contact the broker/FDM
Open a demo account
MIG INVESTMENTS SA
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.