Yesterday’s rather drowsy Forex trading activity is in stark contrast to the stock markets’ extreme volatility, best described as crash in installments. Here, expressions used by Mr. Bernanke like "long recession" are certainly not helpful and should be avoided by the head of a central bank overseeing the world’s reserve currency.
With the current renewed turmoil in financial markets, syphoning liquidity and attention off Forex, we do not see much volatility returning today. In our outlook below, we therefore reduce the expected trading ranges in the major pairs. U.S. Leading Indicators for October are due for release today at 16:00 CET. This indicator could probably shift back into the focus of Forex traders - expected is a further decline.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
A buying mood for the pair emerged in early European trading, which we see continuing for today, eventually testing the 1.2590 resistance level. Currently trading at 1.2515, the downside is now protected by the 1.2480 support level.
GBP / USD
Cable broke the 1.4900 handle support yesterday, leading to lower trading in this European morning. Currently trading at 1.4860 near another, more solid support, we expect higher prices today, leading to the 1.4900 level again.
USD / CHF
The dollar has been consolidating its fresh gains against the Swiss franc in early European trading and is currently priced near the highs at 1.2120. We do not expect the 1.2145 resistance level to be broken today and rather see a test on the downside at 1.2060 support.
USD / JPY
The selling mood of the dollar against the yen, emerging yesterday and continuing in all of Asian trading, came to a short halt in early European trading, with current prices of 95.45. We see the established downtrend remaining for today, eventually testing the 94.50 support level.
With the current renewed turmoil in financial markets, syphoning liquidity and attention off Forex, we do not see much volatility returning today. In our outlook below, we therefore reduce the expected trading ranges in the major pairs. U.S. Leading Indicators for October are due for release today at 16:00 CET. This indicator could probably shift back into the focus of Forex traders - expected is a further decline.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
A buying mood for the pair emerged in early European trading, which we see continuing for today, eventually testing the 1.2590 resistance level. Currently trading at 1.2515, the downside is now protected by the 1.2480 support level.
GBP / USD
Cable broke the 1.4900 handle support yesterday, leading to lower trading in this European morning. Currently trading at 1.4860 near another, more solid support, we expect higher prices today, leading to the 1.4900 level again.
USD / CHF
The dollar has been consolidating its fresh gains against the Swiss franc in early European trading and is currently priced near the highs at 1.2120. We do not expect the 1.2145 resistance level to be broken today and rather see a test on the downside at 1.2060 support.
USD / JPY
The selling mood of the dollar against the yen, emerging yesterday and continuing in all of Asian trading, came to a short halt in early European trading, with current prices of 95.45. We see the established downtrend remaining for today, eventually testing the 94.50 support level.
