For a long time, a decisive movement for the dollar market has been missed, with the reserve currency moving back and forth against the majors for last five months. That is not surprising in times like these, when there is still the big question of whether the U.S. economy will show real signs of true life soon, after pumping gazillions into the paralyzed financial system to reanimate it. But the sideways movment in the major pairs do not show the same picture at all as in movements of the trade-weighted Dollar Index. Here, a clear bid tone over the last 3 months has emerged, resulting in a confirmed, but moderate, uptrend, well visible in the daily charts, and lately in the shorter term as well.
For today‘s trading, following the data yesterday showing a still-contracting economy, we expect the sideways trading market to continue, with no decisive movements, as explained in detail below for the major pairs. There are no market-moving data releases scheduled for today.
Intraday Market Outlook for Day Traders
EUR / USD
The weaker trend of the pair was more pronounced in Asian and early European trading. Near a support zone around 1.3020 and now trading at 1.3070, we do not see much more downside risk, rather an upmove into the old sideways trading zone, to a resistance for today at 1.3190.
GBP / USD
Cable has broken a support zone at 1.4820 in European morning trading and is now at 1.4810. We see further downmoves limited to the 1.4720 level, based on the extremely oversold situation now and recovery moves later up to the 1.4850 level.
USD / CHF
Against the Swiss franc, the dollar quickly gained further territory in early European trading, being priced now at 1.1620 around former highs. We expect an upside maximum around 1.1650 for today, and afterwards a down correction to 1.1560.
USD / JPY
The otherwise higher volatility of the dollar in other pairs was not reflected against the yen in Asian and early European trading. Currently priced at 99.25, the downside seems to be limited to around 99.10 and the upside to 99.50 for today’s trading.
For today‘s trading, following the data yesterday showing a still-contracting economy, we expect the sideways trading market to continue, with no decisive movements, as explained in detail below for the major pairs. There are no market-moving data releases scheduled for today.
Intraday Market Outlook for Day Traders
EUR / USD
The weaker trend of the pair was more pronounced in Asian and early European trading. Near a support zone around 1.3020 and now trading at 1.3070, we do not see much more downside risk, rather an upmove into the old sideways trading zone, to a resistance for today at 1.3190.
GBP / USD
Cable has broken a support zone at 1.4820 in European morning trading and is now at 1.4810. We see further downmoves limited to the 1.4720 level, based on the extremely oversold situation now and recovery moves later up to the 1.4850 level.
USD / CHF
Against the Swiss franc, the dollar quickly gained further territory in early European trading, being priced now at 1.1620 around former highs. We expect an upside maximum around 1.1650 for today, and afterwards a down correction to 1.1560.
USD / JPY
The otherwise higher volatility of the dollar in other pairs was not reflected against the yen in Asian and early European trading. Currently priced at 99.25, the downside seems to be limited to around 99.10 and the upside to 99.50 for today’s trading.
