In early European trading, the major pairs were shaken by Germany`s Business Climate Survey (IFO) release, pointing to a gloomy economic outlook again for the entire Eurozone. The dollar strengthened quickly, moving through major resistance zones and bringing many indicators to even more overbought levels.
This confirms the already-established uptrend for the U.S. currency. In today’s trading, though, we prefer to wait for downward corrections before entering new long positions in the dollar, as outlined in the majors’ details below. Note today’s data release of U.S. consumer confidence for August at 16:00 CET, where a slight improvement is expected, and the FOMC report at 20:00 CET.
Intraday Market Outlook for Day Traders
EUR / USD
The EUR / USD broke a major support level at 1.4650 in European morning trading in reaction to again-disappointing German IFO numbers and is currently trading at a low of 1.4587. We see some upward correction in the making, up to 1.4630, where the downtrend is likely to set in again.
GBP / USD
Cable, currently trading at a low of 1.8347, was hit badly as well. For this more volatile pair, we expect a recovery up to near 1.8400, where we expect another selling phase.
USD / CHF
The important resistance 1.1000 handle is now decisively broken, with the dollar now trading at 1.1075. Expect downward corrections to set in soon, testing the 1.1040 level, where we expect the bid tone for the dollar to be resumed.
USD / JPY
In contrast to the other pairs, the dollar gained little against the yen this European morning and is bumping right now, at 109.85, into major resistance levels. We see little trading aspects in today's hours, only some gradual further upmove
This confirms the already-established uptrend for the U.S. currency. In today’s trading, though, we prefer to wait for downward corrections before entering new long positions in the dollar, as outlined in the majors’ details below. Note today’s data release of U.S. consumer confidence for August at 16:00 CET, where a slight improvement is expected, and the FOMC report at 20:00 CET.
Intraday Market Outlook for Day Traders
EUR / USD
The EUR / USD broke a major support level at 1.4650 in European morning trading in reaction to again-disappointing German IFO numbers and is currently trading at a low of 1.4587. We see some upward correction in the making, up to 1.4630, where the downtrend is likely to set in again.
GBP / USD
Cable, currently trading at a low of 1.8347, was hit badly as well. For this more volatile pair, we expect a recovery up to near 1.8400, where we expect another selling phase.
USD / CHF
The important resistance 1.1000 handle is now decisively broken, with the dollar now trading at 1.1075. Expect downward corrections to set in soon, testing the 1.1040 level, where we expect the bid tone for the dollar to be resumed.
USD / JPY
In contrast to the other pairs, the dollar gained little against the yen this European morning and is bumping right now, at 109.85, into major resistance levels. We see little trading aspects in today's hours, only some gradual further upmove
