The development in Forex markets since the beginning of the year looks like a new currency agreement, where a band of allowed marks cannot be crossed. These marks are clearly visible in the EUR / USD - between 1.3600 and 1.2500, lately in the even less volatile range between 1.3400 and 1.3100. These ranges are also applicable for the dollar against the yen, the Swiss franc and even the British pound, with changing volatility, of course. But it is not a real agreement, it is merely an admittance to uncertainty, caused by the very seldom phenomenon of a quick and universal economic slowdown. Without analyzing which country‘s economy will first recover, we take this "agreement" as a fact for now, looking only on the technical aspects, and wage the opportunities to trade a continued sideways market. From this point of view, the EUR / USD as well as other pairs show an oversold position against the Greenback for the moment this European morning.
For today‘s trading, we project trading bands more in favor of the EUR, GBP and CHF against the dollar as described in detail below. There are no market-moving data scheduled for today - tomorrow will be different, when the ECB publishes its current monetary policy.
Intraday Market Outlook for Day Traders
EUR / USD
Again the pair is on recovery path this European morning, having met lows around 1.3250 in late Asian trading, and is currently priced at 1.3325. We expect this up movement to continue in today’s trading, meeting resistance eventually at levels around 1.3420.
GBP / USD
The pound seems to be continuing its now seven day uptrend against the dollar and is currently trading at 1.5080, about to attack resistance at 1.5150. We see that level being reached today, but not broken. A consolidation is in the cards then, between that higher mark and 1.5060 on the downside.
USD / CHF
The dollar is losing steam against the Swiss franc in early European trading, heading again towards the lows around 1.1250, and is currently trading at 1.1320. We expect these lows to be tested again in today’s hours, where we see very low volatility in the market, resulting in a sideways trend.
USD / JPY
A downward trend of the dollar against the yen emerged in Asian trading, which is now in an upward correction in this European morning. Currently trading at 98.35 from lows around 98.00, we see this upward correction continuing today and testing the 98.80 resistance.
For today‘s trading, we project trading bands more in favor of the EUR, GBP and CHF against the dollar as described in detail below. There are no market-moving data scheduled for today - tomorrow will be different, when the ECB publishes its current monetary policy.
Intraday Market Outlook for Day Traders
EUR / USD
Again the pair is on recovery path this European morning, having met lows around 1.3250 in late Asian trading, and is currently priced at 1.3325. We expect this up movement to continue in today’s trading, meeting resistance eventually at levels around 1.3420.
GBP / USD
The pound seems to be continuing its now seven day uptrend against the dollar and is currently trading at 1.5080, about to attack resistance at 1.5150. We see that level being reached today, but not broken. A consolidation is in the cards then, between that higher mark and 1.5060 on the downside.
USD / CHF
The dollar is losing steam against the Swiss franc in early European trading, heading again towards the lows around 1.1250, and is currently trading at 1.1320. We expect these lows to be tested again in today’s hours, where we see very low volatility in the market, resulting in a sideways trend.
USD / JPY
A downward trend of the dollar against the yen emerged in Asian trading, which is now in an upward correction in this European morning. Currently trading at 98.35 from lows around 98.00, we see this upward correction continuing today and testing the 98.80 resistance.
