This time, even the ECB joined the crowd again and cut euro interest rates by 50 basis points. Above that, the bank’s governors went a step further, contemplating further cuts. This is quite in contrast to earlier this year, when the European Central Bank insisted on its main mandate, price stability, and kept interest rates too high for too long. The euro fell against several currencies after the announcement, not only versus the USD. A well-known scenario is again emerging: America was much earlier and more decisive in lowering interest rates than Europe. Since interest rate cuts take about a year to show their effect on the economy, the U.S. engine will start humming first, and this expectation is having a negative effect on the euro for now.
After rising again yesterday, the dollar has been undergoing some downward correction this European morning, which could last for a while. We would trade both sides again today, within the ranges as projected below. There are two market moving data releases scheduled today, the non-farm payrolls and the unemployment rate, both for October, at 14:30 CET.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair started an upmove this European morning, which will soon meet heavy resistance around the 1.2900 level. Currently trading at 1.2830, we see the upmove continuing at a slower pace but not breaking the 1.2900 level. From there, downmoves are expected to support at 1.2760.
GBP / USD
Cable is soon entering a resistance zone between 1.5850 and 1.5890, having recovered in early European trading, and is currently priced at 1.5790. We expect this resistance zone to be tested but not broken in today’s trading. In later hours, another downmove to the 1.5650 area is likely.
USD / CHF
Testing good support about now, the dollar is currently trading at 1.1700 against the Swiss franc. We don’t see much downside risk below this support line, rather another attack on the 1.1790 resistance line in today’s trading.
USD / JPY
Still caught in a now 7-day-old trading range and at its lower limit, the dollar is currently priced at 97.30 against the yen. We do not project any more substantial downside risk for the pair now, which is now more or less finding support. The potential upside moves from these levels could lead into the 98.50 area in today’s trading.
After rising again yesterday, the dollar has been undergoing some downward correction this European morning, which could last for a while. We would trade both sides again today, within the ranges as projected below. There are two market moving data releases scheduled today, the non-farm payrolls and the unemployment rate, both for October, at 14:30 CET.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair started an upmove this European morning, which will soon meet heavy resistance around the 1.2900 level. Currently trading at 1.2830, we see the upmove continuing at a slower pace but not breaking the 1.2900 level. From there, downmoves are expected to support at 1.2760.
GBP / USD
Cable is soon entering a resistance zone between 1.5850 and 1.5890, having recovered in early European trading, and is currently priced at 1.5790. We expect this resistance zone to be tested but not broken in today’s trading. In later hours, another downmove to the 1.5650 area is likely.
USD / CHF
Testing good support about now, the dollar is currently trading at 1.1700 against the Swiss franc. We don’t see much downside risk below this support line, rather another attack on the 1.1790 resistance line in today’s trading.
USD / JPY
Still caught in a now 7-day-old trading range and at its lower limit, the dollar is currently priced at 97.30 against the yen. We do not project any more substantial downside risk for the pair now, which is now more or less finding support. The potential upside moves from these levels could lead into the 98.50 area in today’s trading.
