After sticking to its strength yesterday, the Greenback finally gave in and corrected downwards in all of Asian and early European trading. Whether or not this represents another attempt at a meaningful down correction in the USD, soon to be stifled again like many other such moves in the past weeks, depends on the strength of the move in development this European morning. So far it is not at all characterized by high volatility, rather by low momentum. This, and the fact that oversold and support levels are near, leads to the conclusion that at least today we will not see much more down movement in the USD.
For today’s trading, we envisage therefore a pivot point where the Greenback will turn up again, as outlined in the major pairs’ discussion below. Yesterday, the U.S. currency was supported by the oil price, falling below $60.00/barrel, so today’s EIA oil market report for the week could have an influence, published at 16:35 CET. There are no other meaningful data releases for the remainder of the day.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair started an upmove during Asian and European morning trading after having tested the 1.2480 support level on the downside. Currently trading at 1.2538, we expect the EUR / USD to move up only a little more today, finding resistance at 1.2580, where we see another downturn to the old support level at 1.2480.
GBP / USD
After another attempt to recover, cable fell back again and is currently trading at 1.5260. In narrow trading ranges, we see an upmove first to levels around 1.5420 before renewed weakness leads to a new day’s low near the 1.5250 level.
USD / CHF
Having reached another high in Asian trading at 1.1895 against the Swiss franc, the dollar is trading in a narrow range in early European hours and is currently at 1.1876. A renewed test near the highs of the day so far is possible, before the downside at 1.1760 for today is envisaged.
USD / JPY
Trading of the dollar against the yen has become very quiet, with the dollar just hovering above the long-term support above 97.00 and is currently priced at 97.16. We do not see much more downside risk in this pair, rather a renewed upmove to 97.60.
For today’s trading, we envisage therefore a pivot point where the Greenback will turn up again, as outlined in the major pairs’ discussion below. Yesterday, the U.S. currency was supported by the oil price, falling below $60.00/barrel, so today’s EIA oil market report for the week could have an influence, published at 16:35 CET. There are no other meaningful data releases for the remainder of the day.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair started an upmove during Asian and European morning trading after having tested the 1.2480 support level on the downside. Currently trading at 1.2538, we expect the EUR / USD to move up only a little more today, finding resistance at 1.2580, where we see another downturn to the old support level at 1.2480.
GBP / USD
After another attempt to recover, cable fell back again and is currently trading at 1.5260. In narrow trading ranges, we see an upmove first to levels around 1.5420 before renewed weakness leads to a new day’s low near the 1.5250 level.
USD / CHF
Having reached another high in Asian trading at 1.1895 against the Swiss franc, the dollar is trading in a narrow range in early European hours and is currently at 1.1876. A renewed test near the highs of the day so far is possible, before the downside at 1.1760 for today is envisaged.
USD / JPY
Trading of the dollar against the yen has become very quiet, with the dollar just hovering above the long-term support above 97.00 and is currently priced at 97.16. We do not see much more downside risk in this pair, rather a renewed upmove to 97.60.
