Forex markets might envy the vigorous volatility the stock markets showed Thursday, with the USD’s simultaneously-shrinking trading ranges in the majors. But these are market phases that are hard to judge, because they are usually followed by a quick breakout in a yet unknown direction. Since the Greenback has still some downward correction work to do, we assume the said breakout will point that way.
In any case, when the boiling point has been reached, perhaps today, the following breakout will govern the market’s direction for 2 or 3 days to come. We therefore prefer a wait and see stance in today’s market and just project wider trading ranges for both sides, as described below. Note the 14:30 CET release of U.S. housing starts and building permits for September.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair traded back a little in early European trading, currently priced at 1.3454 in low volatility. A breakout from the limits at 1.3490 on the upside or at the lower front at 1.3410 would expand the upper and lower levels to 1.3540 and 1.3340.
GBP / USD
Cable continues to trade in a narrow sideward channel this European morning and is currently trading at 1.7303. A breakout from this channel would lead to a broadened trading range between 1.7230 on the downside and 1.7440 on the upside.
USD / CHF
Caught in a narrow trading range, the dollar is currently priced at 1.1370 against the Swiss franc. An expansion of this range is possible today, with the upper and lower limits extended to 1.1440 and 1.1290.
USD / JPY
The dollar lost some ground against the yen in late Asian and early European trading, trading currently at 100.92 near a support level, after reaching today’s high of 101.81. We do not have a forecast for today’s trading in this pair..
In any case, when the boiling point has been reached, perhaps today, the following breakout will govern the market’s direction for 2 or 3 days to come. We therefore prefer a wait and see stance in today’s market and just project wider trading ranges for both sides, as described below. Note the 14:30 CET release of U.S. housing starts and building permits for September.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair traded back a little in early European trading, currently priced at 1.3454 in low volatility. A breakout from the limits at 1.3490 on the upside or at the lower front at 1.3410 would expand the upper and lower levels to 1.3540 and 1.3340.
GBP / USD
Cable continues to trade in a narrow sideward channel this European morning and is currently trading at 1.7303. A breakout from this channel would lead to a broadened trading range between 1.7230 on the downside and 1.7440 on the upside.
USD / CHF
Caught in a narrow trading range, the dollar is currently priced at 1.1370 against the Swiss franc. An expansion of this range is possible today, with the upper and lower limits extended to 1.1440 and 1.1290.
USD / JPY
The dollar lost some ground against the yen in late Asian and early European trading, trading currently at 100.92 near a support level, after reaching today’s high of 101.81. We do not have a forecast for today’s trading in this pair..
