China's proposal to establish special drawing rights (SDR) seems to take the initiative of installing a new world currency order. Interesting that the proposal, which is not at all against the interests of the U.S. right now because it makes the USD more competitive (weaker), came just before the G20 meeting next week, which will be focusing on a new financial world order. But whenever people talk of a new world order, we should recall history related to this fine phrase. First, it is not new, (remember Bretton-Woods) and second, it will not bring order. Before the conclusion of the G20 meeting next week, do not expect the dollar to move decisively, but see the current selling mood to remain more or less intact.
For today’s trading and in the major pairs, the USD most probably will test further support levels, some of them may even be broken, as explained in the detailed outlook below. Note the 13:30 CET publication of the third and final U.S. GDP estimate for the 4th quarter, where a -6.6% is expected, after -6.2% in last month’s estimate.
Intraday Market Outlook for Day Traders
EUR / USD
After gains in Asian trading, the pair is currently hovering on a support zone just above 1.3540, right now priced at 1.3560. We see that support holding in today’s trading and a further upleg developing to levels around 1.3650.
GBP / USD
Cable traded lower in early European trading to 1.4560 in the current market. Soon testing support zones, now around the 1.4560 level, we expect an upmove in today’s trading hours, giving the market the chance to test the 1.4650 mark.
USD / CHF
The dollar is trying again to lift off from its support level at 1.1200 in this European morning and is currently trading at 1.1260 against the Swiss franc. We see another failure to break the 1.1300 resistance level, bringing the pair back to near 1.1200 today.
USD / JPY
The bid tone of the dollar against the yen that developed in Asian trading continues in European morning trading, with the market reaching current prices around 98.15. We project a maximum up limit for this movement at 98.50, from where down corrections would set in to prices around 97.80.
For today’s trading and in the major pairs, the USD most probably will test further support levels, some of them may even be broken, as explained in the detailed outlook below. Note the 13:30 CET publication of the third and final U.S. GDP estimate for the 4th quarter, where a -6.6% is expected, after -6.2% in last month’s estimate.
Intraday Market Outlook for Day Traders
EUR / USD
After gains in Asian trading, the pair is currently hovering on a support zone just above 1.3540, right now priced at 1.3560. We see that support holding in today’s trading and a further upleg developing to levels around 1.3650.
GBP / USD
Cable traded lower in early European trading to 1.4560 in the current market. Soon testing support zones, now around the 1.4560 level, we expect an upmove in today’s trading hours, giving the market the chance to test the 1.4650 mark.
USD / CHF
The dollar is trying again to lift off from its support level at 1.1200 in this European morning and is currently trading at 1.1260 against the Swiss franc. We see another failure to break the 1.1300 resistance level, bringing the pair back to near 1.1200 today.
USD / JPY
The bid tone of the dollar against the yen that developed in Asian trading continues in European morning trading, with the market reaching current prices around 98.15. We project a maximum up limit for this movement at 98.50, from where down corrections would set in to prices around 97.80.
