With economic data from both sides of the Atlantic now showing a slight improvement of economic conditions, the Forex market has come to a kind of standstill. Traders are undecided whether the euro will take the lead and continue its uptrend against the dollar which began March 4th. No wonder, it is too early to tell just from a few leading indicators like the ZEW index yesterday of Germany (which was better than expected) that the economy of this important country for the Eurozone is about to improve. America in contrast shows more reliable signs of such an improvement. Under these circumstances, we expect the EUR / USD to stay in a sideways movement for some time. Technical factors support this view: The pair is longer-term overbought and bumping now into heavy resistance zones, which we do not expect to be broken for weeks, if at all.
For todays trading, we see the USD’s emerging bid tone in early European trading hours to remain overall intact, but only just testing resistance levels as explained below in the major pairs. U.S. consumer prices for February are being released at 13:30 CET. Later in the day, at 19:15 CET, the FOMC release will most probably trigger more volatility.
Intraday Market Outlook for Day Traders
EUR / USD
After reaching a high around 1.3060 in early European trading, the pair first lost 80 pips and is now again on a short-term upmove, currently trading at 1.3030. We see today’s trading limited to 1.3100 on the upside, then giving way to weakness, which will take the pair to support at 1.2970.
GBP / USD
Cable is on the losing track in early European trading, with a downmove from 1.4050 to presently at 1.3890. We expect some upward correction for today, not exceeding 1.3960, and then renewed weakness will set in , bringing the pair to the 1.3820 level.
USD / CHF
The dollar maintained its downward correction against the Swiss franc in early European trading. Currently priced at 1.1760, we expect the weakness to end soon, finding support at 1.1740. From there, upmoves are expected, towards resistance at 1.1850.
USD / JPY
Still caught in its narrow trading range, the dollar recovered slightly in Asian trading against the yen and is currently at 98.60 in European trading. We expect the low volatility trading range to remain intact for today, limiting the downside to 98.40 and 98.80 on the upside.
For todays trading, we see the USD’s emerging bid tone in early European trading hours to remain overall intact, but only just testing resistance levels as explained below in the major pairs. U.S. consumer prices for February are being released at 13:30 CET. Later in the day, at 19:15 CET, the FOMC release will most probably trigger more volatility.
Intraday Market Outlook for Day Traders
EUR / USD
After reaching a high around 1.3060 in early European trading, the pair first lost 80 pips and is now again on a short-term upmove, currently trading at 1.3030. We see today’s trading limited to 1.3100 on the upside, then giving way to weakness, which will take the pair to support at 1.2970.
GBP / USD
Cable is on the losing track in early European trading, with a downmove from 1.4050 to presently at 1.3890. We expect some upward correction for today, not exceeding 1.3960, and then renewed weakness will set in , bringing the pair to the 1.3820 level.
USD / CHF
The dollar maintained its downward correction against the Swiss franc in early European trading. Currently priced at 1.1760, we expect the weakness to end soon, finding support at 1.1740. From there, upmoves are expected, towards resistance at 1.1850.
USD / JPY
Still caught in its narrow trading range, the dollar recovered slightly in Asian trading against the yen and is currently at 98.60 in European trading. We expect the low volatility trading range to remain intact for today, limiting the downside to 98.40 and 98.80 on the upside.
