With Germany as the main economic engine in the Eurozone now officially in recession, the euro came under renewed pressure against the dollar, sending the currency near its year-low at 1.2330 yesterday. Though heavily oversold now, it looks as if the EUR / USD will break that low as well today. Adding to that outlook is the overall strength of the dollar, supported by further decreasing oil prices, now below $53/barrel and still falling, in view of more and more dark clouds hanging over the global economy.
Some recovery in the EUR / USD and GBP / USD and accordingly a slight retreat in the USD / CHF and USD / JPY is underway right now, a movement which we see don’t think will last for long in today’s trading. See the details in the outlook for the major pairs below. Note the releases of the U.S. Trade Balance (14:30 CET) and U.S. Treasury Budget (20:00 CET).
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair is recovering in early European trading hours and is currently at 1.2485, having reached a low of 1.2389. We expect the euro rally to come to an end soon today, at 1.2540, and expect renewed selling from this level.
GBP / USD
Cable’s steep fall yesterday, ignited by the BOE’s announcement of possible lower interest rates in the near future. Currently priced at 1.4924, cable is in a recovery move, after hitting 6-year lows at 1.4805. We see, though, continued downward momentum.
USD / CHF
The dollar reached a new high at 1.1946 against the Swiss franc in late Asian trading and is currently trading at 1.1911 in a slight correction mood. It may test the 1.1890 support level soon, from where we expect strength to pick up again towards highs of 1.1945.
USD / JPY
The dollar recovered from lows at 94.50 against the yen in Asian and early European trading and is currently priced at 96.12. We see that trend continuing today, leading to a test of the 97.50 resistance level.
Some recovery in the EUR / USD and GBP / USD and accordingly a slight retreat in the USD / CHF and USD / JPY is underway right now, a movement which we see don’t think will last for long in today’s trading. See the details in the outlook for the major pairs below. Note the releases of the U.S. Trade Balance (14:30 CET) and U.S. Treasury Budget (20:00 CET).
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair is recovering in early European trading hours and is currently at 1.2485, having reached a low of 1.2389. We expect the euro rally to come to an end soon today, at 1.2540, and expect renewed selling from this level.
GBP / USD
Cable’s steep fall yesterday, ignited by the BOE’s announcement of possible lower interest rates in the near future. Currently priced at 1.4924, cable is in a recovery move, after hitting 6-year lows at 1.4805. We see, though, continued downward momentum.
USD / CHF
The dollar reached a new high at 1.1946 against the Swiss franc in late Asian trading and is currently trading at 1.1911 in a slight correction mood. It may test the 1.1890 support level soon, from where we expect strength to pick up again towards highs of 1.1945.
USD / JPY
The dollar recovered from lows at 94.50 against the yen in Asian and early European trading and is currently priced at 96.12. We see that trend continuing today, leading to a test of the 97.50 resistance level.
