With oil prices on a $6 / barrel upmove yesterday, the Greenback traded markedly lower, which brought especially the euro near its upper resistance zone against the dollar in its now almost 4-week long consolidation phase, which began Oct. 28th. Chart buffs are watching that zone closely, because a break on the upside would call for a more pronounced move. That would then mean the USD has at last entered its long awaited down correction against the major pairs. So far it has been considered only a consolidation of the Greenback’s previous strength - since last July it has regained over a fifth of its value in many pairs. The pause in that move has so far been limited by three touch downs around 1.2400 in the EUR / USD and three hasty jumps towards 1.3000 plus, still a very stiff resistance zone.
For today’s trading, we are looking for countermoves in the major pairs to correct the now short-term extreme oversold situation in the USD. Such a move has already materialized in late Asian trading, changing its character to a sideways one in early European trading hours. See our detailed outlook for today in the major pairs below. Note today’s release of U.S. preliminary GDP 3rd quarter at 14:30 CET, where the first decline this year is expected.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair is digesting yesterday’s rally with a downmove in early European trading and is currently priced at 1.2870. We see further down momentum in today’s trading, first to support at 1.2820, then to lower levels at 1.2750.
GBP / USD
The resistance zone at 1.5190 for the pair has been tested but not broken in late Asian trading and the pair is currently trading at 1.5105. We expect resistance to hold in today’s trading and see rather a down momentum developing to 1.5020 support.
USD / CHF
After its steep fall yesterday, the dollar recovered against the Swiss franc from a low near support at 1.1930. Currently trading at 1.2050, we see this recovery move continuing in today’s trading and expect a test of the 1.2150 resistance level.
USD / JPY
The dollar traded back against the yen only in late Asian trading. After a high near resistance at 97.50, it is now down to 95.85 and near good long-term support at 95.50. We expect this level to hold and see upmoves from there, but not breaking the 97.50 resistance.
For today’s trading, we are looking for countermoves in the major pairs to correct the now short-term extreme oversold situation in the USD. Such a move has already materialized in late Asian trading, changing its character to a sideways one in early European trading hours. See our detailed outlook for today in the major pairs below. Note today’s release of U.S. preliminary GDP 3rd quarter at 14:30 CET, where the first decline this year is expected.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair is digesting yesterday’s rally with a downmove in early European trading and is currently priced at 1.2870. We see further down momentum in today’s trading, first to support at 1.2820, then to lower levels at 1.2750.
GBP / USD
The resistance zone at 1.5190 for the pair has been tested but not broken in late Asian trading and the pair is currently trading at 1.5105. We expect resistance to hold in today’s trading and see rather a down momentum developing to 1.5020 support.
USD / CHF
After its steep fall yesterday, the dollar recovered against the Swiss franc from a low near support at 1.1930. Currently trading at 1.2050, we see this recovery move continuing in today’s trading and expect a test of the 1.2150 resistance level.
USD / JPY
The dollar traded back against the yen only in late Asian trading. After a high near resistance at 97.50, it is now down to 95.85 and near good long-term support at 95.50. We expect this level to hold and see upmoves from there, but not breaking the 97.50 resistance.
