After some minor downward correction yesterday, the dollar traded more strongly versus the major pairs during all of Asian trading, especially against the Swiss franc where a 100 basis points cut in interest rates weakened the CHF against the euro as well. The Greenback was given additional support by oil prices dropping below $50 / barrel.

Short term in overbought condition now, the USD started a downward correction in early European trading, which might well continue in today’s trading although the fundamental expectations and the technical factors still support a stronger dollar. See the details in the outlook below for the major pairs. There are no important scheduled data releases today.

by George Clement

Intraday Market Outlook for Day Traders

EUR / USD
The recovery of the EUR / USD from a low of 1.2424 in Asian trading was enforced this European morning and the pair is currently trading at 1.2620, near a broader resistance zone. We expect trading to move into this zone, eventually meeting the upper limit at 1.2690 for today.

GBP / USD
The previously so unstable cable seems to have found more solid footing – having been in a broad trading range for 7 days and currently in an upswing therein. Trading now at 1.4975, it will soon bump into today’s resistance at 1.5050, where another downswing is expected.

USD / CHF
After another solid upmove yesterday and in Asian trading, the dollar started a downward correction against the Swiss franc and is currently trading at 1.2205. The support zone 1.2150 might be tested today but not broken.

USD / JPY
The dollar was in an upthrust in all of Asian and early European trading and is currently priced at 95.15 against the yen. We see this mood changing