This financial summit was not designed to defuse the current financial crisis, it was intended to prevent such ugly events in the future. Consequently, the markets feared that this weekend’s congregation could end with an overdone regulative or protectionist tone. It did not, and that is a relief for the financial community, which has nothing against new clearing houses or new bank accounting standards, as proposed in the summit. The plan now has to be drafted by the member countries, leading to the (hopefully) concluding summit in Washington in April.
So it will be business as usual for Forex as well in today’s trading, where we detect a selling tone for the USD this European morning. We expect that mood to continue for a while today, to a point where we see a turn in the later trading hours once joined by the U.S. See the details below. Note the data release for U.S. industrial production and capacity utilization, both for October and scheduled at 15:15 CET.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The upward mood of the pair increased in early European trading, with the EUR / USD currently priced at 1.2670. We see this bid tone continuing for awhile today but not exceeding the resistance level at 1.2750. Afterwards, we are reckoning with downmoves leading to a level at 1.2590, which we expect to be today’s support later.
GBP / USD
Cable picked up remarkable strength this European morning, currently trading around the important resistance zone at 1.4950. We doubt this resistance will be markedly broken today and rather expect downmoves later to levels around 1.4720.
USD / CHF
So far, the dollar hasn’t broken the important handle resistance level at 1.2000 and fell back this European morning to current prices at 1.1900 against the Swiss franc. We see the selling tone drying out in today’s trading, at levels of 1.1880, where we expect another attack move towards the old highs.
USD / JPY
The dollar is again caught in a narrow trading range against the yen and is currently trading at 96.69. We do not expect moves today out of this range, defined at 97.60 on the upside and 96.00 on the downside.
So it will be business as usual for Forex as well in today’s trading, where we detect a selling tone for the USD this European morning. We expect that mood to continue for a while today, to a point where we see a turn in the later trading hours once joined by the U.S. See the details below. Note the data release for U.S. industrial production and capacity utilization, both for October and scheduled at 15:15 CET.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The upward mood of the pair increased in early European trading, with the EUR / USD currently priced at 1.2670. We see this bid tone continuing for awhile today but not exceeding the resistance level at 1.2750. Afterwards, we are reckoning with downmoves leading to a level at 1.2590, which we expect to be today’s support later.
GBP / USD
Cable picked up remarkable strength this European morning, currently trading around the important resistance zone at 1.4950. We doubt this resistance will be markedly broken today and rather expect downmoves later to levels around 1.4720.
USD / CHF
So far, the dollar hasn’t broken the important handle resistance level at 1.2000 and fell back this European morning to current prices at 1.1900 against the Swiss franc. We see the selling tone drying out in today’s trading, at levels of 1.1880, where we expect another attack move towards the old highs.
USD / JPY
The dollar is again caught in a narrow trading range against the yen and is currently trading at 96.69. We do not expect moves today out of this range, defined at 97.60 on the upside and 96.00 on the downside.
