The dollar is still in a swing market mood, right now hovering again just below its resistance lines, the upper limit of the trading range. The indecisive stance is understandable, considering the main theme of the upcoming G8 plus 12 meeting, namely a new financial world order, whatever that should mean. Hawkish members of the meeting would even advocate a new currency system, though it is highly unlikely that a repetition of a new Bretton Woods will be even considered, given the failure of the old one. It will be interesting to see if the Greenback moves to a more decisive stance after the upcoming weekend’s meeting, i.e. picking up its strength again after the consolidation / correction period we have been in for a while now.
Again, today there are no scheduled data releases known as market movers. We are therefore concentrating on pure market- and chart-technical factors. These are calling for upmoves in the EUR / USD and GBP / USD today. See the details below.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair started an upmove during European morning trading, after having tested the 1.2700 support level on the downside. Currently trading at 1.2752, we expect the EUR / USD to move further on the upside today with an objective of 1.2870.
GBP / USD
Trading near good support now, cable is currently priced at 1.5599. We do not see much more downside risk in today’s trading, perhaps only the 1.5560 level being tested. An upside move could emerge soon, bringing cable to 1.5750 resistance.
USD / CHF
Meeting stiff resistance around the 1.1800 level, the dollar began to trade back against the Swiss franc in early European trading. Currently priced at 1.1737, the USD will soon be probing the support zone near 1.1700. We see that support being broken in today’s trading, with the USD trading as low as 1.1660.
USD / JPY
Still caught in a now 7-day-old trading range and at its lower limit, the dollar is currently priced at 97.70 against the yen. We see further downside potential today, to the level of slightly below 97.00.
Again, today there are no scheduled data releases known as market movers. We are therefore concentrating on pure market- and chart-technical factors. These are calling for upmoves in the EUR / USD and GBP / USD today. See the details below.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair started an upmove during European morning trading, after having tested the 1.2700 support level on the downside. Currently trading at 1.2752, we expect the EUR / USD to move further on the upside today with an objective of 1.2870.
GBP / USD
Trading near good support now, cable is currently priced at 1.5599. We do not see much more downside risk in today’s trading, perhaps only the 1.5560 level being tested. An upside move could emerge soon, bringing cable to 1.5750 resistance.
USD / CHF
Meeting stiff resistance around the 1.1800 level, the dollar began to trade back against the Swiss franc in early European trading. Currently priced at 1.1737, the USD will soon be probing the support zone near 1.1700. We see that support being broken in today’s trading, with the USD trading as low as 1.1660.
USD / JPY
Still caught in a now 7-day-old trading range and at its lower limit, the dollar is currently priced at 97.70 against the yen. We see further downside potential today, to the level of slightly below 97.00.
