This week has much focus on the central bankers’ stance in store, with the according impact on Forex. It started yesterday with the press conference at the Bank of International Settlements in Basel about the G10-meeting of central bank governors. Further and even better coordinated monetary policy is one of the promises of that meeting. There is more to come. Today M. Trichet of the ECB is presiding over the euro`s 10-year jubilee celebration, with him and several colleagues speaking. And Mr. Bernanke of the U.S. Fed will have his say, too. Then Thursday, the ECB will decide on their interest policy, a 50 basis points rate cut is expected. The overall focus is now on the euro, under pressure right now, and giving perhaps new signals for a reconfirmed longer-term downtrend against the USD. (For that, it has to fall below $1.28).
With so many top speakers and a full agenda of economic news from both sides of the Atlantic, we see possibly increased volatility. The dollar is overbought again in the short-term view, especially in today’s trading, so down correction moves are in the cards. We look therefore for opportunities to buy only below the present market. See the detailed outlook in the major pairs’ discussion. Note the speech of the Fed’s head at 14:00 CET, and the U.S. trade balance at 14:30 CET.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Trading currently at 1.3290, the pair recovered slightly within its downtrend. We expect this recovery to continue for a while in today’s trading, testing the resistance level at 1.3380, a point which we consider another selling opportunity.
GBP / USD
Cable lost further ground in the early European hours, currently trading at 1.4670 near its support at 1.4620. We expect recovery moves to mount up in today’s trading, but not breaking the resistance level at 1.4790. From there, further weakness will set in.
USD / CHF
The dollar is struggling hard to overcome the 1.1250 resistance level against the Swiss franc. Once again it fell back to current prices at 1.1170 in a correction-like move that could lead to the 1.1130 level. From there, we see another attack on the 1.1250 resistance line.
USD / JPY
With further weakness in late Asian and early European trading hours, the dollar broke the 90.00 support level which now becomes a resistance in further upmoves. Currently trading at 89.05, some recovery moves can set in now, to levels around 89.80, from where we expect the downtrend to be resumed.
With so many top speakers and a full agenda of economic news from both sides of the Atlantic, we see possibly increased volatility. The dollar is overbought again in the short-term view, especially in today’s trading, so down correction moves are in the cards. We look therefore for opportunities to buy only below the present market. See the detailed outlook in the major pairs’ discussion. Note the speech of the Fed’s head at 14:00 CET, and the U.S. trade balance at 14:30 CET.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Trading currently at 1.3290, the pair recovered slightly within its downtrend. We expect this recovery to continue for a while in today’s trading, testing the resistance level at 1.3380, a point which we consider another selling opportunity.
GBP / USD
Cable lost further ground in the early European hours, currently trading at 1.4670 near its support at 1.4620. We expect recovery moves to mount up in today’s trading, but not breaking the resistance level at 1.4790. From there, further weakness will set in.
USD / CHF
The dollar is struggling hard to overcome the 1.1250 resistance level against the Swiss franc. Once again it fell back to current prices at 1.1170 in a correction-like move that could lead to the 1.1130 level. From there, we see another attack on the 1.1250 resistance line.
USD / JPY
With further weakness in late Asian and early European trading hours, the dollar broke the 90.00 support level which now becomes a resistance in further upmoves. Currently trading at 89.05, some recovery moves can set in now, to levels around 89.80, from where we expect the downtrend to be resumed.
