It is questionable if the remarks in yesterday‘s U.S. speech by the ECB president, Trichet, signalling future "credit easing" by the institute, has driven the euro lower against most currencies, including the Japanese yen. First, May 7 may bring some clarity about that, when the ECB announces its current monetary policy, which is still a long time in the world of intraday trading. Second, the dollar and other currencies were in oversold territories against the euro in this see-saw market; in other words, it was already due for a correction. This correction sentiment might well dominate the market over the next days.
For today‘s trading, we see more of the bid tone in the dollar emerging in later hours, while some downward movement against the majors can set in. See the trading bands below for the description of these majors. Note the U.S. consumer confidence index for April at 16:00 CET. Expected is further slowing down in the current contraction of the indicator.
Intraday Market Outlook for Day Traders
EUR / USD
The pair is consolidating its lower levels in this European morning and is currently trading at 1.3010. Some upward movements may set in soon, testing the 1.3050 resistance but not breaking it. Later, further weakness is likely, leading to prices around 1.2950.
GBP / USD
Testing soon the intraday support zone around 1.4550, cable is currently priced at 1.4560 in early European trading. We expect that support zone to be broken in today’s hours and see prices around 1.4400 to come.
USD / CHF
The dollar is quietly trading around the 1.1550 support level in early European hours against the Swiss franc and is now at 1.1565. We see a decision materializing in today’s hours, breaking the 1.1600 highs of yesterday, to a maximum mark around 1.1650.
USD / JPY
Trading above a long-term support of 95.50 against the yen, the dollar weakened further in this European morning and is currently priced at 95.90. We do not see that support being broken in today’s trading, but do not expect much upside potential, rather a narrow sideways movement in development.
For today‘s trading, we see more of the bid tone in the dollar emerging in later hours, while some downward movement against the majors can set in. See the trading bands below for the description of these majors. Note the U.S. consumer confidence index for April at 16:00 CET. Expected is further slowing down in the current contraction of the indicator.
Intraday Market Outlook for Day Traders
EUR / USD
The pair is consolidating its lower levels in this European morning and is currently trading at 1.3010. Some upward movements may set in soon, testing the 1.3050 resistance but not breaking it. Later, further weakness is likely, leading to prices around 1.2950.
GBP / USD
Testing soon the intraday support zone around 1.4550, cable is currently priced at 1.4560 in early European trading. We expect that support zone to be broken in today’s hours and see prices around 1.4400 to come.
USD / CHF
The dollar is quietly trading around the 1.1550 support level in early European hours against the Swiss franc and is now at 1.1565. We see a decision materializing in today’s hours, breaking the 1.1600 highs of yesterday, to a maximum mark around 1.1650.
USD / JPY
Trading above a long-term support of 95.50 against the yen, the dollar weakened further in this European morning and is currently priced at 95.90. We do not see that support being broken in today’s trading, but do not expect much upside potential, rather a narrow sideways movement in development.
