Sometimes the better alternative is to concentrate on pure chart-technical factors, especially in these wild times. Based on fundamental observations, the majority of market participants reckon with further weakness of the euro, not only against the dollar. Granted, longer term we are sharing this opinion. The present capital gain attraction of U.S. long-term bonds is overwhelming, considering the Fed is evidently buying up this market to bring longer-term interest rates down. But when seven out of ten technical indicators in four different time frames speak for an intermediate upward correction in the EUR / USD, you have to listen to this sometimes only whispering voice of the market, too.
Accordingly, and speaking short term only for today’s market, we do not see an immediate further strengthening of the dollar and rather expect countermoves in the major pairs. See our detailed outlook below. Note today’s U.S. producer price index release for January, scheduled for 14:30 CET. An increase is expected, but a contrary outcome, pointing to deflation, could lend the USD further stimulus.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Currently on a recovery path and trading at 1.2660, the pair is now meeting intermediate resistance. We see this level being broken on the upside later again, leading to a further upmove to the 1.2750 level. From there setbacks are likely.
GBP / USD
Cable recovered further in early European trading and is right now consolidating its gains at 1.4350. We expect another upward attempt, to prices around the 1.4440 level.
USD / CHF
After the dollar achieved a new 8-month high of 1.1826 against the Swiss franc, the market went into a downturn in Asian trading and is currently slightly upward and priced at 1.1780 in European morning trading. We expect a longer consolidation / correction period in today’s trading, finding support at 1.1720 and resistance at 1.1790.
USD / JPY
The dollar went into a mild selling mood against the yen in Asian trading, which continued in early European hours, priced right now near an intermediate support zone at 93.50. We see this level being broken in today‘s trading, with the market testing the next support at 92.90
Accordingly, and speaking short term only for today’s market, we do not see an immediate further strengthening of the dollar and rather expect countermoves in the major pairs. See our detailed outlook below. Note today’s U.S. producer price index release for January, scheduled for 14:30 CET. An increase is expected, but a contrary outcome, pointing to deflation, could lend the USD further stimulus.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Currently on a recovery path and trading at 1.2660, the pair is now meeting intermediate resistance. We see this level being broken on the upside later again, leading to a further upmove to the 1.2750 level. From there setbacks are likely.
GBP / USD
Cable recovered further in early European trading and is right now consolidating its gains at 1.4350. We expect another upward attempt, to prices around the 1.4440 level.
USD / CHF
After the dollar achieved a new 8-month high of 1.1826 against the Swiss franc, the market went into a downturn in Asian trading and is currently slightly upward and priced at 1.1780 in European morning trading. We expect a longer consolidation / correction period in today’s trading, finding support at 1.1720 and resistance at 1.1790.
USD / JPY
The dollar went into a mild selling mood against the yen in Asian trading, which continued in early European hours, priced right now near an intermediate support zone at 93.50. We see this level being broken in today‘s trading, with the market testing the next support at 92.90
