The results on the Irish EU treaty vote, the U.S. CPI report and the G8 meeting are the main events that traders are awaiting which will hopefully give a clear picture as to the dollar's direction. Already though, most traders are expecting dollar-positive news from these events and as a consequence have been buying the U.S. currency during early European trading.
We too feel that the Greenback has the potential to rally sharply in the coming days as sentiment has clearly turned in its favor and we are positioning ourselves to profit from this intended rally.
Intraday Market Outlook for Day Traders
EUR / USD
The EUR / USD is currently trading below 1.5400 at 1.5390, which is also right above support at 1.5365. A renewed dollar bullishness has forced prices lower and we feel a test of said support in today’s trading is imminent. However, today the results of the Irish EU treaty vote will be an important factor and caution traders about going short before this report is announced. We advise anyone taking positions in the EUR / USD today to do so from the short side.
GBP / USD
The GBP / USD, currently trading at 1.9470, is also weaker today due to stronger dollar sentiment. A test of support at 1.9435 has already occurred today but prices have recovered. However, we feel a renewed and possible break of support will be seen in today’s trading. We want to see this break of support before establishing a position.
USD / CHF
The USD / CHF is currently trading right at 1.0500 and has made impressive gains from its lows yesterday at 1.0303. At these levels, the USD / CHF is in overbought territory and we feel that resistance at 1.0527 will be tested but not before some consolidation and recovery to relieve the overbought situation. Stay tuned.
USD / JPY
The USD / JPY has climbed in early Europen trading to 108.27 currently. Like the USD / CHF, the USD / JPY has entered into overbought territory and we feel some consolidation is necessary before further gains are made. Longer term, we feel the pair will break the resistance level at 108.60 and possibly reach 112.00, which is next resistance, but not in today’s trading.
We too feel that the Greenback has the potential to rally sharply in the coming days as sentiment has clearly turned in its favor and we are positioning ourselves to profit from this intended rally.
Intraday Market Outlook for Day Traders
EUR / USD
The EUR / USD is currently trading below 1.5400 at 1.5390, which is also right above support at 1.5365. A renewed dollar bullishness has forced prices lower and we feel a test of said support in today’s trading is imminent. However, today the results of the Irish EU treaty vote will be an important factor and caution traders about going short before this report is announced. We advise anyone taking positions in the EUR / USD today to do so from the short side.
GBP / USD
The GBP / USD, currently trading at 1.9470, is also weaker today due to stronger dollar sentiment. A test of support at 1.9435 has already occurred today but prices have recovered. However, we feel a renewed and possible break of support will be seen in today’s trading. We want to see this break of support before establishing a position.
USD / CHF
The USD / CHF is currently trading right at 1.0500 and has made impressive gains from its lows yesterday at 1.0303. At these levels, the USD / CHF is in overbought territory and we feel that resistance at 1.0527 will be tested but not before some consolidation and recovery to relieve the overbought situation. Stay tuned.
USD / JPY
The USD / JPY has climbed in early Europen trading to 108.27 currently. Like the USD / CHF, the USD / JPY has entered into overbought territory and we feel some consolidation is necessary before further gains are made. Longer term, we feel the pair will break the resistance level at 108.60 and possibly reach 112.00, which is next resistance, but not in today’s trading.
