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Daily Trading Forecast

Forex: Not Much Direction, But Still Fairly Tradeable

Thu, Nov 5 2009, 11:01 GMT
by Swiss e Trade Strategy Team

Swiss e Trade AG

The last few weeks brought nothing more than oversold / overbought situations in a sort of a sideways movement for all the majors. It might be that December, usually the most volatile month for the Greenback, will bring a change; most probably, in our view, it will be a change to the downside for the USD until year-end. But so far, only the sideways market will dominate, athough there is volatility enough to enter favorable trades intraday. What is interesting is that the incoming fundamental data does not influence the movements much anymore - the technical analysis side is clearly more important now.

For today's trading, we expect a somewhat stronger USD, having reached support levels and an oversold situation. Such a movement set in already in early European trading. See the major pairs' list below for the details. Note today's BOE rate decision at 13:00 CET and the ECB decision published at 13:45 CET with Trichet's comments at 14:30 CET. Also at 14:30 CET, the U.S. will announce the weekly Jobless Claims.

by George Clement

Intraday Market Outlook for Day Traders

EUR / USD
Currently trading at 1.4840, the pair corrected downwards this European morning after reaching highs of over 1.4881. We see more of this downward correction developing today, down around levels of 1.4760.

GBP / USD
After nearly testing the 1.6600 resistance level, the pound fell back again to now 1.6530 in early European trading. We do not see another test of the resistance level, rather further down correction moves to the support zone at 1.6470.

USD / CHF
The dollar recovered a little this European morning against the Swiss franc, priced right now at 1.0175. We expect more of this recovery to come in today's trading, leading to levels around 1.0230.

USD / JPY
The dollar lost territory in Asian and early European trading against the yen, right now down to 90.15 after highs of 90.85. The level 90.00 represents an important support zone, which we think will not be broken today. We rather see upmoves setting in, towards the 91.30 mark again.

Published on  Thu, Nov 5 2009, 11:02 GMT