The fact that there is no clear direction short term for the USD is no surprise in present times. Still nervous financial markets, gobbling up every word of the new U.S. administration, can send the currency one day up, the next day down. Add to that the uncertainty of where the economy is heading, a financial system virtually on sick leave and the slumping world trade, and the confusion is perfect. In such times, the charts, the market’s telling pictures, come as a boon. And here we see the light: There is nothing other than a clear sideways trend short term, which has to be considered as a consolidation of the longer-term uptrend of the dollar, which began in Summer last year.
For today’s trading, we expect that see-saw game to continue. Right now in European morning trading, the USD shows a selling tone again, which we see remaining until the pivot points in the major pairs projected below are reached. At 14:30 CET, the U.S. trade balance is due, where a smaller deficit is expected.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair is on a recovery course in early European morning trading and is currently at 1.2950. We see the up movement continuing in today’s trading, eventually testing the 1.3090 resistance level. Afterwards, a correction can set in, leading back to 1.2950.
GBP / USD
Cable, in a further sell-off in late Asian and early European trading, is in a consolidation move right now with current prices around 1.4480. This is a support zone which we believe will hold in today’s trading, leaving room on the upside for a target of 1.4569.
USD / CHF
The dollar lost some further ground in early European trading against the Swiss franc, with the market now back to the current 1.1550. This is a support level we see breaking in today’s market, leading to prices around 1.1450.
USD / JPY
The increasing downside volatility brought the dollar back to the 89.80 level in late Asian and European morning trading. Currently priced at 89.90 and in a very slight recovery move, we see the 89.80 intermediate support being broken on the downside today, eventually testing the 89.10 major support.
For today’s trading, we expect that see-saw game to continue. Right now in European morning trading, the USD shows a selling tone again, which we see remaining until the pivot points in the major pairs projected below are reached. At 14:30 CET, the U.S. trade balance is due, where a smaller deficit is expected.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair is on a recovery course in early European morning trading and is currently at 1.2950. We see the up movement continuing in today’s trading, eventually testing the 1.3090 resistance level. Afterwards, a correction can set in, leading back to 1.2950.
GBP / USD
Cable, in a further sell-off in late Asian and early European trading, is in a consolidation move right now with current prices around 1.4480. This is a support zone which we believe will hold in today’s trading, leaving room on the upside for a target of 1.4569.
USD / CHF
The dollar lost some further ground in early European trading against the Swiss franc, with the market now back to the current 1.1550. This is a support level we see breaking in today’s market, leading to prices around 1.1450.
USD / JPY
The increasing downside volatility brought the dollar back to the 89.80 level in late Asian and European morning trading. Currently priced at 89.90 and in a very slight recovery move, we see the 89.80 intermediate support being broken on the downside today, eventually testing the 89.10 major support.
