With virtually no fresh fundamental news, the major pairs’ attack on resistance/support zones continued in Asian and early European trading in very narrow ranges. These levels represent important points in assessing the U.S. dollar’s further recovery which we believe will continue, albeit slowly in the less volatile summer sessions.
Market movers among fundamental data releases are not scheduled until Thursday/Friday and, with the present absence of fresh news from the interest rate side, there is only the oil price which could rock the boat again. The price of oil is in an upward correction phase now but, barring a substantial rise, we see the solid support zones of the USD being successfully defended in today’s trading. Even some upside move for the dollar in the major pairs is possible, as outlined in detail below.
Intraday Market Outlook for Day Traders
EUR / USD
The EUR / USD, currently trading at 1.5730, has fought (and so far failed) to overcome resistance at 1.5750 in late Asian and early European trading. We expect the 1.5750 resistance to hold in today’s trading and see rather a slight downward bias in a thin market, finding support at 1.5700.
GBP / USD
Currently trading at 1.9940, cable fell back from the 1.9970 resistance level reached in early European trading, which we believe will not be broken today. On the downside, there is little room to trade as well, with first supports at 1.9920 and 1.9890.
USD / CHF
The U.S. dollar against the Swiss franc is still caught in the tight trading range between 1.0400 and 1.0320 and is now trading at 1.0350. We do not expect this range to be broken on either side today, but see from present levels a mild bid tone emerging, leading to the 1.0400 level again.
USD / JPY
Currently trading at 107.70 and still on a good support level, the USD / JPY might undertake another attack towards the 108.00 resistance level. In the present thin market, we do not see a move beyond that point.
Market movers among fundamental data releases are not scheduled until Thursday/Friday and, with the present absence of fresh news from the interest rate side, there is only the oil price which could rock the boat again. The price of oil is in an upward correction phase now but, barring a substantial rise, we see the solid support zones of the USD being successfully defended in today’s trading. Even some upside move for the dollar in the major pairs is possible, as outlined in detail below.
Intraday Market Outlook for Day Traders
EUR / USD
The EUR / USD, currently trading at 1.5730, has fought (and so far failed) to overcome resistance at 1.5750 in late Asian and early European trading. We expect the 1.5750 resistance to hold in today’s trading and see rather a slight downward bias in a thin market, finding support at 1.5700.
GBP / USD
Currently trading at 1.9940, cable fell back from the 1.9970 resistance level reached in early European trading, which we believe will not be broken today. On the downside, there is little room to trade as well, with first supports at 1.9920 and 1.9890.
USD / CHF
The U.S. dollar against the Swiss franc is still caught in the tight trading range between 1.0400 and 1.0320 and is now trading at 1.0350. We do not expect this range to be broken on either side today, but see from present levels a mild bid tone emerging, leading to the 1.0400 level again.
USD / JPY
Currently trading at 107.70 and still on a good support level, the USD / JPY might undertake another attack towards the 108.00 resistance level. In the present thin market, we do not see a move beyond that point.
