After the financial turbulence, the USD traded throughout the Asian and early European session in a sideways movement against the majors, stabilizing after its down correction. There was no reaction to the all-important IFO business climate index for Germany this morning, showing further decline. It is possible that the market awaits today’s U.S. developments, especially the testifying of Messrs. Paulson and Bernanke before the House (20:30 CET).
For today’s trading, we expect a continuing sideways market with some increased volatility in the U.S. morning and afternoon hours, when U.S. existing house sales for August are released (16:00 CET). The USD still is marked by a downward correction tone, as we describe in the discussion of the major pairs below.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The EUR / USD is currently working on a support buildup between 1.4650 and 1.4700 and is currently trading at 1.4658. We expect this to continue for some time in today’s trading, before an upmove to the 1.4740 level later in the day might set in.
GBP / USD
The GBP / USD showed a bid tone this European morning trying to break resistance at 1.8610 and is currently trading slightly below that level. We expect that resistance to fall during the day, opening more upside potential to the 1.8700 level.
USD / CHF
The dollar constantly gained ground against the low-yielding Swiss franc (as against the low-yielding yen) in early European trading and is now at 1.0880 from yesterday’s low at 1.0700. To confirm this countermove compared to other major pairs, the USD has to break the 1.0900 resistance level first and then 1.0940, which we expect to hold in today’s trading. A downmove would be limited at 1.0780.
USD / JPY
The dollar traded higher against the low-yielding yen in late Asian and early European trading and is now at 106.25, today’s high so far. We see the resistance level at 106.50 tested today, but not broken, then downward trading to prices around 105.50.of this publication
For today’s trading, we expect a continuing sideways market with some increased volatility in the U.S. morning and afternoon hours, when U.S. existing house sales for August are released (16:00 CET). The USD still is marked by a downward correction tone, as we describe in the discussion of the major pairs below.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The EUR / USD is currently working on a support buildup between 1.4650 and 1.4700 and is currently trading at 1.4658. We expect this to continue for some time in today’s trading, before an upmove to the 1.4740 level later in the day might set in.
GBP / USD
The GBP / USD showed a bid tone this European morning trying to break resistance at 1.8610 and is currently trading slightly below that level. We expect that resistance to fall during the day, opening more upside potential to the 1.8700 level.
USD / CHF
The dollar constantly gained ground against the low-yielding Swiss franc (as against the low-yielding yen) in early European trading and is now at 1.0880 from yesterday’s low at 1.0700. To confirm this countermove compared to other major pairs, the USD has to break the 1.0900 resistance level first and then 1.0940, which we expect to hold in today’s trading. A downmove would be limited at 1.0780.
USD / JPY
The dollar traded higher against the low-yielding yen in late Asian and early European trading and is now at 106.25, today’s high so far. We see the resistance level at 106.50 tested today, but not broken, then downward trading to prices around 105.50.of this publication
