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Daily Trading Forecast

Major Pairs: Oversold / Overbought Does it for the Moment

Tue, Jun 30 2009, 10:06 GMT
by Swiss e Trade Strategy Team

Swiss e Trade AG

Much of the fundamental observations in the last months did not bring home the bacon. It was quite enough to follow pure technical considerations, like overbought / oversold and resistance / support constellations in the majors against the dollar, longer or shorter term. We do not expect this market behavior to change soon in today’s difficult times when central banks are forced to follow a near zero policy to save their economies.

In our daily trade outlook, the dollar seems to be oversold again and testing support zones. Below are our detailed projections for it - we also note that the majority of the selling stops in the market for the Greenback are triggered already. Note the U.S. consumer confidence index for June today at 16:00 CET. Expected is a further slight improvement, which, if more substantial, could temporarily put a lid on the dollar.

by George Clement

Intraday Market Outlook for Day Traders

EUR / USD
The pair is defending its higher levels in early European trading, priced right now at 1.4100, trading above a support level. We expect this level to fall in today’s trading, bringing the market to around 1.3990 again.

GBP / USD
After being a high flyer yesterday, cable is moderating its uptrend this European morning, currently trading around 1.6610. We see downward corrections today in this market, testing the 1.6550 support level.

USD / CHF
The dollar dropped further against the Swiss franc in early European trading, and is currently trading at 1.0815. We expect the support around 1.0790 to be defended in today’s trading, giving way to recovery moves up to a maximum of 1.0890.

USD / JPY
In late Asian and early European trading hours, the dollar fell markedly against the yen, from highs around 96.30 to now 95.50, which represents a temporary support. We expect the market to fall further, down to levels around 95.10.

Published on  Tue, Jun 30 2009, 10:07 GMT