When the economists of the World Bank predict a global recession like they recently did, one can be almost sure that it is already well in progress, and smart people should look for signs of recovery. This week America awaits us with a bunch of economic data for February, the important month before Spring, which usually gives early signs of where we are heading. Expectations in the market for these data releases are perhaps too bleak, considering that the economic contraction has lost its speed as illustrated already by some numbers for January. For today, though, the outlook remains very clouded, with the Asian stock markets starting the week pessimistic. That would support the dollar, still gobbling up money attracted by the U.S. government bond market.
Therefore, we are looking for buying opportunities in the USD in today’s trading, anticipating first signs of a breakthrough of the long-term resistance lines, which would end the now-dominant see-saw market. See below the detailed description in the major pairs. For this Monday, chart-technical considerations would have the lead since there are no market-moving fundamental data on the day’s menu.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair lost territory in early European trading, and is currently approaching the support zone at 1.2600, priced right now at 1.2625. We see this support zone being broken in today’s trading, and eventually testing the 1.2550 level.
GBP / USD
After a long sideways movement, cable experienced a bout of weakness in Asian and early European trading. Currently at 1.3905, some recovery moves are likely, but not exceeding the 1.3990 level. We see further weakness from there, leading to a test of the support zone at 1.3850.
USD / CHF
The dollar is slowly gaining ground against the Swiss franc in European morning trading and is currently at 1.1580. We expect further strength to develop in today’s trading, which will later test the 1.1650 resistance level.
USD / JPY
Asian trading began the week with a stronger dollar against the yen, and the strength continued in European trading. Currently priced at 98.80, we expect more of an upmove today, most probably testing the 99.20 level.
Therefore, we are looking for buying opportunities in the USD in today’s trading, anticipating first signs of a breakthrough of the long-term resistance lines, which would end the now-dominant see-saw market. See below the detailed description in the major pairs. For this Monday, chart-technical considerations would have the lead since there are no market-moving fundamental data on the day’s menu.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair lost territory in early European trading, and is currently approaching the support zone at 1.2600, priced right now at 1.2625. We see this support zone being broken in today’s trading, and eventually testing the 1.2550 level.
GBP / USD
After a long sideways movement, cable experienced a bout of weakness in Asian and early European trading. Currently at 1.3905, some recovery moves are likely, but not exceeding the 1.3990 level. We see further weakness from there, leading to a test of the support zone at 1.3850.
USD / CHF
The dollar is slowly gaining ground against the Swiss franc in European morning trading and is currently at 1.1580. We expect further strength to develop in today’s trading, which will later test the 1.1650 resistance level.
USD / JPY
Asian trading began the week with a stronger dollar against the yen, and the strength continued in European trading. Currently priced at 98.80, we expect more of an upmove today, most probably testing the 99.20 level.
