Another bout of weakness amidst renewed sorrows about the stability of world trade brought the euro back to its last year’s lows against the dollar. Signs of further weakness against other currencies, such as the CHF and JPY, emerged as well, reflecting aspects of a dramatically deepening economic slump in the Eurozone. Meanwhile, the USD gained strength in other pairs as well as that the major money flow into U.S. bonds increased in face of the weak Monday start of the stock markets. With the EUR / USD pair showing the weakest performance, it seems to be only a question of time until a bulk of stop loss selling below the 1.2500 mark in the pair triggers another downmove.
Considering the longer-term overbought condition of the USD, we are inclined to reckon with a sideways trend in today’s trading for the major pairs as outlined in detail below. There are no major fundamental data scheduled for today, after the German ZEW index this European morning showed a clear improvement of the economic mood in Germany and the Eurozone.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Consolidating its lower levels, the pair is now at 1.2650 in early European trading. Right now there is a slight bid tone in the market, which we see first developing into a test of the 1.2690 resistance line. Afterwards, we expect a see-saw market in today’s trading, ranging between the 1.2690 and 1.2590 marks.
GBP / USD
Cable found solid support at the 1.4150 level in late Asian trading and is currently gaining ground in European morning trading, now at 1.4270. We do not expect this recovery move to continue in today’s trading and project a sideways movement between 1.4290 on the upside and 1.4160 on the downside.
USD / CHF
Currently priced at 1.1700 against the Swiss franc, the dollar lost some ground in early European hours. Offering a chance to enter positions both ways, we see a range trading mood for today’s market between the 1.1740 and 1.1620 levels. Right now the market is heading towards the 1.1620 level.
USD / JPY
Stronger in Asian trading, the dollar sold off again in European morning trading and is currently at 91.80. A trading range for today between 91.60 and 92.50 is in the cards.
Considering the longer-term overbought condition of the USD, we are inclined to reckon with a sideways trend in today’s trading for the major pairs as outlined in detail below. There are no major fundamental data scheduled for today, after the German ZEW index this European morning showed a clear improvement of the economic mood in Germany and the Eurozone.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Consolidating its lower levels, the pair is now at 1.2650 in early European trading. Right now there is a slight bid tone in the market, which we see first developing into a test of the 1.2690 resistance line. Afterwards, we expect a see-saw market in today’s trading, ranging between the 1.2690 and 1.2590 marks.
GBP / USD
Cable found solid support at the 1.4150 level in late Asian trading and is currently gaining ground in European morning trading, now at 1.4270. We do not expect this recovery move to continue in today’s trading and project a sideways movement between 1.4290 on the upside and 1.4160 on the downside.
USD / CHF
Currently priced at 1.1700 against the Swiss franc, the dollar lost some ground in early European hours. Offering a chance to enter positions both ways, we see a range trading mood for today’s market between the 1.1740 and 1.1620 levels. Right now the market is heading towards the 1.1620 level.
USD / JPY
Stronger in Asian trading, the dollar sold off again in European morning trading and is currently at 91.80. A trading range for today between 91.60 and 92.50 is in the cards.
