With the financial markets sceptical about the outcome of the G20 summit this week, the focus turned again in favor of the world reserve currency. Too many politicians already talked too much ahead of this summit, like Mr. Sarkozy of France, who said he would walk away if the conference does not take up his proposal to form a tough international financial regulation body. Britain and the U.S. are likely to be opponents of such ideas, unsurprisingly, because the main objective of this summit is to create a real worldwide effort to revive the financial and economic activities (Europe is far behind in this respect) and to fight lurking ideas of protectionism. We expect a "see-saw" market for the dollar to be developing this week, with a more decisive direction forming only after the G20 meeting.
For today’s trading, we see little strength in the USD, which is already in a correction move this morning in Europe. The chance is high, though, to trade both sides today within the trading channels projected below in the major pair discussion. Note today’s U.S. consumer confidence indicator for March at 16:00 CET.
Intraday Market Outlook for Day Traders
EUR / USD
The pair is continuing its upward correction in European morning trading, currently bumping into a resistance zone and currently trading at 1.3300. Reaching levels of around 1.3320 seems to be realistic to assume in today’s trading before another downmove, which we see reaching the 1.3220 support.
GBP / USD
1.4150 proved to be the support level yesterday for cable, which continued its upward correction in early European trading, priced right now at 1.4280. We see that support level around 1.4150 being tested again in today’s trading, but not broken, and the sideways channel between 1.4260 and 1.4150 remaining intact.
USD / CHF
Hovering above support now, the dollar is currently trading at 1.1390 against the Swiss franc. We expect that support around the 1.1370 level to hold in today’s trading and see recovery moves up to the 1.1520 resistance setting in soon, which represents the upper limit of today`s trading band.
USD / JPY
The contrary up movements of the dollar against the yen compared with other majors continued in all of Asian trading. Priced currently at 98.30, the dollar is consolidating its gains with a bid tone. We expect the current upmove to meet resistance soon, at 98.85, and see then a setback to levels around 97.90.
For today’s trading, we see little strength in the USD, which is already in a correction move this morning in Europe. The chance is high, though, to trade both sides today within the trading channels projected below in the major pair discussion. Note today’s U.S. consumer confidence indicator for March at 16:00 CET.
Intraday Market Outlook for Day Traders
EUR / USD
The pair is continuing its upward correction in European morning trading, currently bumping into a resistance zone and currently trading at 1.3300. Reaching levels of around 1.3320 seems to be realistic to assume in today’s trading before another downmove, which we see reaching the 1.3220 support.
GBP / USD
1.4150 proved to be the support level yesterday for cable, which continued its upward correction in early European trading, priced right now at 1.4280. We see that support level around 1.4150 being tested again in today’s trading, but not broken, and the sideways channel between 1.4260 and 1.4150 remaining intact.
USD / CHF
Hovering above support now, the dollar is currently trading at 1.1390 against the Swiss franc. We expect that support around the 1.1370 level to hold in today’s trading and see recovery moves up to the 1.1520 resistance setting in soon, which represents the upper limit of today`s trading band.
USD / JPY
The contrary up movements of the dollar against the yen compared with other majors continued in all of Asian trading. Priced currently at 98.30, the dollar is consolidating its gains with a bid tone. We expect the current upmove to meet resistance soon, at 98.85, and see then a setback to levels around 97.90.
