With the global stockmarkets in a kind of a "Crash in Installments" the euro and the British pound have been pummeled most of yesterday and in late Asian trading against their dollar, yen and Swiss franc pairs. The European morning hours saw some recovery in these two weaklings so far. With its renewed downmove, the euro has only broadened its trading range though, which is still sidewards against the dollar, so the conclusion for a consolidation/correction phase of the Greenback`s recent two week upmove is still valid.
Ahead of an important weekend with a G-7/8 or 12 meeting with this time an electrifying main theme, we advise entering Forex markets only with extreme shortly timed in and out trades or completely staying away today. Note the 14:30 CET release of the U.S. trade balance for August, where an improvement is expected.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair expanded its sideways trading range overnight, with the lower end now slightly above 1.3520, and recovered in early European trading, currently at 1.3610. We see further upmoves to near the upper end at around 1.3750.
GBP / USD
Cable resumed its characteristic weakness in Asian trading when it touched a low at 1.6803. Recovering in early European trading, it is now priced at 1.6930, a move will eventually go beyond this level, up to 1.7060.
USD / CHF
The dollar quickly tested the 1.1180 support level against the Swiss franc in late Asian hours, currently recovering in early European trading to now 1.1205. We see the recovery move continuing, but being limited at 1.1235, and the support level 1.1180 eventually broken on the downside to next support at 1.1145.
USD / JPY
The dollar found support at 98.00 against the yen in Asian trading and recovered in early European hours to currently 99.25. We see some further recovery but not beyond the 99.60 level in today’s trading and, in later hours, the 98.00 level tested again.
Ahead of an important weekend with a G-7/8 or 12 meeting with this time an electrifying main theme, we advise entering Forex markets only with extreme shortly timed in and out trades or completely staying away today. Note the 14:30 CET release of the U.S. trade balance for August, where an improvement is expected.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair expanded its sideways trading range overnight, with the lower end now slightly above 1.3520, and recovered in early European trading, currently at 1.3610. We see further upmoves to near the upper end at around 1.3750.
GBP / USD
Cable resumed its characteristic weakness in Asian trading when it touched a low at 1.6803. Recovering in early European trading, it is now priced at 1.6930, a move will eventually go beyond this level, up to 1.7060.
USD / CHF
The dollar quickly tested the 1.1180 support level against the Swiss franc in late Asian hours, currently recovering in early European trading to now 1.1205. We see the recovery move continuing, but being limited at 1.1235, and the support level 1.1180 eventually broken on the downside to next support at 1.1145.
USD / JPY
The dollar found support at 98.00 against the yen in Asian trading and recovered in early European hours to currently 99.25. We see some further recovery but not beyond the 99.60 level in today’s trading and, in later hours, the 98.00 level tested again.
