For the time being, Forex seems like a new hidden world currency agreement. Whether it is the EUR, GBP, JPY, CHF, AUD or CAD against the dollar, and in its individual crosses, the market is moving in well defined trading ranges, formed since last November. Not that there is a lack of volatility in the currency markets which still offer a lot of opportunities short term. But the present economic situation makes China’s proposal at the G20 to introduce a new IMF-SDR-based world reserve currency seem timely. Also the proposal of Mr. Sarkozy suggesting new worldwide financial and tax regulations bears merit. But the chances of such proposals to be accepted at the G20 in London are small, given the American and British resistance to such ideas. The current longer-term sideways market might well linger on in the near future.
In today’s European morning trading, the USD gains some lost territory in Asian trading, a development we expect to continue for today. See our detailed projections in the major pairs below. The ECB will publish the monetary policy at 13:45 CET; a further interest rate cut by 50 basis points is already discounted in the market.
Intraday Market Outlook for Day Traders
EUR / USD
The pair, after correcting its gains in Asian trading a little, is bumping into resistance around 1.3300 in early European trading. Currently priced at 1.3290, we do not expect that 1.3300 level to be broken substantially in today’s trading, and project rather a new down movement from there to slightly above 1.3200.
GBP / USD
Cable continued its uptrend in European morning trading, approaching the 1.4700 resistance level with current prices around 1.4620. We see that bid tone reversing today near that level, giving room for a more substantial downward correction as far as 1.4490.
USD / CHF
The dollar is moving quietly in a slight bid tone against the Swiss franc in early European trading, currently at 1.1450. We see the present upmove gaining some more momentum today, leading to levels around 1.1550.
USD / JPY
The dollar is about to meet an important long-term resistance zone at the 99.50 to100.00 level against the yen. Currently trading at 99.45, we expect the upward momentum to run out of steam in today’s market and see a downward correction to the 98.50 mark.
In today’s European morning trading, the USD gains some lost territory in Asian trading, a development we expect to continue for today. See our detailed projections in the major pairs below. The ECB will publish the monetary policy at 13:45 CET; a further interest rate cut by 50 basis points is already discounted in the market.
Intraday Market Outlook for Day Traders
EUR / USD
The pair, after correcting its gains in Asian trading a little, is bumping into resistance around 1.3300 in early European trading. Currently priced at 1.3290, we do not expect that 1.3300 level to be broken substantially in today’s trading, and project rather a new down movement from there to slightly above 1.3200.
GBP / USD
Cable continued its uptrend in European morning trading, approaching the 1.4700 resistance level with current prices around 1.4620. We see that bid tone reversing today near that level, giving room for a more substantial downward correction as far as 1.4490.
USD / CHF
The dollar is moving quietly in a slight bid tone against the Swiss franc in early European trading, currently at 1.1450. We see the present upmove gaining some more momentum today, leading to levels around 1.1550.
USD / JPY
The dollar is about to meet an important long-term resistance zone at the 99.50 to100.00 level against the yen. Currently trading at 99.45, we expect the upward momentum to run out of steam in today’s market and see a downward correction to the 98.50 mark.
