So far, the slow uptrend that started 10 days ago remains unbroken, supported by now more optimistic equity markets. The pair seems prepared for another attack on the important 1.3050 resistance line, with even more solid resistance levels above that, between 1.3050 and 1.3300. We doubt the EUR / USD will make that move soon, not only because it is in longer-term overbought condition, but also considering its still tight correlation with stockmarkets. The optimism there that started last week deserves a pause as well, being perhaps distracted again by troubled news from the financial segment, this time from Europe.
For today’s trading, we expect a consolidation of the USD at lower levels reached in the major pairs, but with good bandwidth in the ranges as described below. Note that there is enough U.S. economic data waiting in the pipeline for possible additional volatility. Tomorrow the Fed will explain the results of the last FOMC meeting, and today housing starts and housing permits data for February will be released at 13.30 CET, as well as the producer price index for February.
Intraday Market Outlook for Day Traders
EUR / USD
The pair is caught in narrow ranges in early European trading between 1.2980 and 1.3030, with the current price positioned at the higher end of this range. We expect the level at 1.3030 to be broken first on the upside, then moving towards the 1.3070 level. Afterwards, then a downside move to test the 1.2950 major support level is expected.
GBP / USD
Cable has broken its upward trend in Asia after reaching highs around the 1.4200 handle level. Currently, cable is trading at 1.4060 in European morning hours. We see recovery moves setting in today, not exceeding the 1.4150 resistance, and later we see range trading between 1.4150 and the 1.4020 level.
CHF / USD
The dollar continued its now 3-day-old sideways trend in early European hours, currently trading at 1.1830. We expect the 1.1800 support to hold in today’s hours, giving way to another upmove towards 1.1920.
USD / JPY
Against the yen, the USD continued its slight bid tone in Asian trading and is currently priced at 98.60. We expect resistance at 99.20 to be broken in today’s trading, but with the move limited to 99.80.
For today’s trading, we expect a consolidation of the USD at lower levels reached in the major pairs, but with good bandwidth in the ranges as described below. Note that there is enough U.S. economic data waiting in the pipeline for possible additional volatility. Tomorrow the Fed will explain the results of the last FOMC meeting, and today housing starts and housing permits data for February will be released at 13.30 CET, as well as the producer price index for February.
Intraday Market Outlook for Day Traders
EUR / USD
The pair is caught in narrow ranges in early European trading between 1.2980 and 1.3030, with the current price positioned at the higher end of this range. We expect the level at 1.3030 to be broken first on the upside, then moving towards the 1.3070 level. Afterwards, then a downside move to test the 1.2950 major support level is expected.
GBP / USD
Cable has broken its upward trend in Asia after reaching highs around the 1.4200 handle level. Currently, cable is trading at 1.4060 in European morning hours. We see recovery moves setting in today, not exceeding the 1.4150 resistance, and later we see range trading between 1.4150 and the 1.4020 level.
CHF / USD
The dollar continued its now 3-day-old sideways trend in early European hours, currently trading at 1.1830. We expect the 1.1800 support to hold in today’s hours, giving way to another upmove towards 1.1920.
USD / JPY
Against the yen, the USD continued its slight bid tone in Asian trading and is currently priced at 98.60. We expect resistance at 99.20 to be broken in today’s trading, but with the move limited to 99.80.
