Sorrows about the state of the banking system in Eastern Europe and too close connections of banks in the Eurozone with it has put a lid on the euro. Austria came into focus with the biggest participation in Eastern Europe’s debt, which could default. Consequently, Austria’s bonds are now carrying the same risk premium as Italy’s and Greece’s paper. With one country of the Eurozone after another coming under a critical light, and with the European Central bank officially not a lender of last resort, it is astonishing how well the EUR still is performing against the USD since the beginning of this week. The move is not outright strength though, and should be considered as just a countermove from previously deeply oversold levels. We expect the weakness to return in the longer view, and the EUR / USD to one again test last November’s lows.
For today’s tradingm we see the bid tone for the euro remaining intact, especially against the yen and the pound and, to a lesser degree, against the USD and CHF. Below are our projections in the USD major pairs for today. Note the 16:00 CET publication of U.S. existing home sales for January.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Although the pair is currently moving into solid short-term resistance lines, we see the general bid tone for it remaining intact in today’s remaining hours. Currently at 1.2820 in European morning trading, we expect another upmove towards the 1.2890 intermediate resistance level and later an upward break to the 1.2950 mark.
GBP / USD
Caught in a sideways movement since the beginning of this week, cable is currently trading at 1.4515 in the middle of a trading range spreading between 1.4640 and 1.4430. We see that trading range remaining for today, offering chances to trade both ways. Right now, in early European trading, we are in a down move towards the 1.4430 support level.
USD / CHF
The dollar, presently trading at 1.1590 in low volatility against the Swiss franc, does not show a clear direction yet. A short-term triangle formation is in development, with an upper end of now 1.1610 and a lower one of 1.1560. We expect a downward break of the 1.1560 support level, which points towards prices of below 1.1490 today.
USD / JPY
Making another year’s high, the dollar is consolidating its new level against the yen and is currently trading at 96.90 in early European hours. Although the yen is particularily weak among the majors, we do not expect the dollar to gain much further strength against it today. 97.40 is a hard-to-break resistance area. Resulting downmoves from there are limited to 95.90.
For today’s tradingm we see the bid tone for the euro remaining intact, especially against the yen and the pound and, to a lesser degree, against the USD and CHF. Below are our projections in the USD major pairs for today. Note the 16:00 CET publication of U.S. existing home sales for January.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Although the pair is currently moving into solid short-term resistance lines, we see the general bid tone for it remaining intact in today’s remaining hours. Currently at 1.2820 in European morning trading, we expect another upmove towards the 1.2890 intermediate resistance level and later an upward break to the 1.2950 mark.
GBP / USD
Caught in a sideways movement since the beginning of this week, cable is currently trading at 1.4515 in the middle of a trading range spreading between 1.4640 and 1.4430. We see that trading range remaining for today, offering chances to trade both ways. Right now, in early European trading, we are in a down move towards the 1.4430 support level.
USD / CHF
The dollar, presently trading at 1.1590 in low volatility against the Swiss franc, does not show a clear direction yet. A short-term triangle formation is in development, with an upper end of now 1.1610 and a lower one of 1.1560. We expect a downward break of the 1.1560 support level, which points towards prices of below 1.1490 today.
USD / JPY
Making another year’s high, the dollar is consolidating its new level against the yen and is currently trading at 96.90 in early European hours. Although the yen is particularily weak among the majors, we do not expect the dollar to gain much further strength against it today. 97.40 is a hard-to-break resistance area. Resulting downmoves from there are limited to 95.90.
