With the nervous stock markets calming down during yesterday’s hours and the financial shares showing signs of life, the euro began to recover against the dollar again. So far it is only a repetition of what we have had the last two months: A pickup of the sideways trend when there is hope that the financial system has finally finished with its long slump, and then a test of the old lows against the dollar when new trouble rises on the horizon. Since the Eurozone is overshadowed by considerable risk with its Eastern European banking partners, we are reckoning with more bad news, which will immediately put repeated pressure on the European single currency.
In today’s trading, we are faced with the fact that the USD is longer-term overbought against the pound, and oversold in the euro. There is recovery potential for the GBP / USD, while the EUR / USD probably will lose its upward steam today. See the details in the major pairs below. Note today’s speech by Fed chairman Ben Bernanke at 13:30 CET.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair is on a bid tone in European morning trading and is currently at 1.2690. We expect the upside potential to be exhausted at resistance at 1.2750, from where some downward correction can set in today.
GBP / USD
Cable is on a recovery move in early European trading, priced right now at 1.3880. Due to the still clearly oversold situation, we expect more of that recovery to come in today’s trading, at least towards the resistance point at 1.3990.
USD / CHF
After having lost its stamina against the Swiss franc, the dollar is currently trading at 1.1540 in European morning hours, near support at 1.1510. We expect some more territory to be lost in today’s trading, eventually testing the major support at 1.1480.
USD / JPY
In Asian trading, the dollar developed a new intermediate downtrend against the yen, which continued in European morning trading, and is right now at 98.30. We expect the downtrend to remain intact in today’s trading, with only minor upward corrections, reaching eventually the 97.70 level.
In today’s trading, we are faced with the fact that the USD is longer-term overbought against the pound, and oversold in the euro. There is recovery potential for the GBP / USD, while the EUR / USD probably will lose its upward steam today. See the details in the major pairs below. Note today’s speech by Fed chairman Ben Bernanke at 13:30 CET.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair is on a bid tone in European morning trading and is currently at 1.2690. We expect the upside potential to be exhausted at resistance at 1.2750, from where some downward correction can set in today.
GBP / USD
Cable is on a recovery move in early European trading, priced right now at 1.3880. Due to the still clearly oversold situation, we expect more of that recovery to come in today’s trading, at least towards the resistance point at 1.3990.
USD / CHF
After having lost its stamina against the Swiss franc, the dollar is currently trading at 1.1540 in European morning hours, near support at 1.1510. We expect some more territory to be lost in today’s trading, eventually testing the major support at 1.1480.
USD / JPY
In Asian trading, the dollar developed a new intermediate downtrend against the yen, which continued in European morning trading, and is right now at 98.30. We expect the downtrend to remain intact in today’s trading, with only minor upward corrections, reaching eventually the 97.70 level.
