Ahead of the G-20 meeting this weekend, the euro strengthened and expectations speak of a more concerted effort to save the brittle state of Eastern European banks. Meanwhile, the earnings report season in the U.S. is better than expected, giving at least a sign that the American economy could have seen its low already. Although it is still too early to decide on that, it has put a lid on the dollar‘s previous strength again, giving room to move the EUR / USD into overbought conditon. We expect this strength to be as short-lived as so many similar movements this year, concentrating on the pure technical factors, which are very clearly pointing to a heavily overbought situation in the EUR / USD. Other currency pairs are trading in a similar state right now.
For today‘s trading, we therefore expect an easing of the present selling mood in the dollar, offering opportunities to buy it as described below within the projected trading bands. Note the usually market-moving U.S. durable goods order data at 14:30 CET today - expected are still negative numbers, but a further slowing down contraction.
Intraday Market Outlook for Day Traders
EUR / USD
The pair rallied this European morning further, with the market now in heavy overbought condition. Running into stark resistance zones around 1.3250 and currently trading at 1.3240 we do not see much more strength developing today, rather anticipating a later downmove to the 1.3150 level.
GBP / USD
In contrast to the euro development against dollar, cable lost its upward momentum in early European trading, falling back from highs around 1.4740 to the current 1.4640. We expect more of that down movement to follow today, leading to prices around 1.4550.
USD / CHF
The dollar lost more ground against the Swiss franc in European morning trading and is currently at 1.1410. There is not much more downside risk in our view for today’s trading, considering the strong support zone around 1.1380. An upmove from there to the 1.1480 resistance zone is in the cards.
USD / JPY
For once the dollar moved in tandem against the yen compared to other pairs - the weakness in late Asian trading continued in the European morning hours. Currently trading at 97.10, we see today’s bottom reached soon and expect an upmove, which will be limited to 97.80.
For today‘s trading, we therefore expect an easing of the present selling mood in the dollar, offering opportunities to buy it as described below within the projected trading bands. Note the usually market-moving U.S. durable goods order data at 14:30 CET today - expected are still negative numbers, but a further slowing down contraction.
Intraday Market Outlook for Day Traders
EUR / USD
The pair rallied this European morning further, with the market now in heavy overbought condition. Running into stark resistance zones around 1.3250 and currently trading at 1.3240 we do not see much more strength developing today, rather anticipating a later downmove to the 1.3150 level.
GBP / USD
In contrast to the euro development against dollar, cable lost its upward momentum in early European trading, falling back from highs around 1.4740 to the current 1.4640. We expect more of that down movement to follow today, leading to prices around 1.4550.
USD / CHF
The dollar lost more ground against the Swiss franc in European morning trading and is currently at 1.1410. There is not much more downside risk in our view for today’s trading, considering the strong support zone around 1.1380. An upmove from there to the 1.1480 resistance zone is in the cards.
USD / JPY
For once the dollar moved in tandem against the yen compared to other pairs - the weakness in late Asian trading continued in the European morning hours. Currently trading at 97.10, we see today’s bottom reached soon and expect an upmove, which will be limited to 97.80.
