With the world’s leaders now willing to act on a global basis to resurrect the financial system, the confidence at least in banks is coming back. Confidence in the economy, of course, is entirely another thing, where the global slowdown already took place and is expected to continue. For Forex markets, at least the scarce liquidity in dollars seems to be improving now, giving the Greenback room to correct its long-term overbought situation.

For today’s trading, we expect this downward correction in the dollar to continue, with the euro benefitting from the fact that the Eurozone leaders are now acting decisively together in their fight to quell their financial fires. There are no scheduled data releases today known as market movers.

by George Clement

Intraday Market Outlook for Day Traders

EUR / USD
The pair recovered further in early European trading, currently at 1.3620, consolidating its higher levels. We would be buyers at 1.3580, with a target of 1.3750.

GBP / USD
Having already recovered last Friday, cable kept that path in Asian and early European trading and is currently trading at 1.7205. Some downward correction is now possible, to the 1.7100 level. We see the upside potential for today limited at 1.7240.

USD / CHF
The dollar is in a downward correction move against the Swiss franc right now, having reached a high of 1.1402 in late Asian trading. Currently trading at 1.1290, we expect the upside to be limited at 1.1350 for today and see more weakness testing the 1.1200 level.

USD / JPY
The dollar is still in recovery mood against the yen, currently trading at 100.40. We see a downward correction to come in today’s trading, leading to a low of 99.10 for today.