The ECB’s decision to expand the money supply significantly by supporting the long-term bond markets was taken as proof that the Eurozone’s economy is far from recovery, in contrast to America, where the business climate is supposed to improve already. This contrasting picture has put pressure on the dollar, ignited by inflation fears – in other words, paying the bill for a quite unorthodox monetary and fiscal policy. Although that aspect bears reality, it might be a lttle too soon to build it into expectations. Nevertheless, the beginning of this week saw another bout of weakness in the dollar, continuing to weaken in this European morning. But with the market heavily oversold now, we expect a recovery phase for the Greenback to set in soon.
Accordingly, we put our projected trading bands for the USD higher for today’s trading, as described in below’s major pair list. There are no fundamental market-moving data scheduled in today’s remaining hours.
Intraday Market Outlook for Day Traders
EUR / USD
Retreating from a long-term resistance point around 1.3650, the pair is currently trading at 1.3590 this European morning. We see more downward correction to come today, leading to tests of the 1.3500 support for today.
GBP / USD
Cable already corrected downwards by almost 150 pips in early European trading from highs around 1.5250 to now 1.5110. We expect a pause in this selling mood with some recovery moves coming in soon, but not above 1.5160. Further weakness is in the cards today then, testing the 1.5060 level.
USD / CHF
The dollar lost further ground against the Swiss franc, right now about to test long-term support at around 1.1050 and currently trading at 1.1080. We expect that support level to hold in today’s trading, giving room for some recovery moves up to 1.1180.
USD / JPY
After consolidating its losses against the yen in Asian trading, the dollar is losing more territory in the early European market hours and is currently priced at 97.70. We do not expect much more downside in today’s market and rather see recovery moves to the 98.20 level.
Accordingly, we put our projected trading bands for the USD higher for today’s trading, as described in below’s major pair list. There are no fundamental market-moving data scheduled in today’s remaining hours.
Intraday Market Outlook for Day Traders
EUR / USD
Retreating from a long-term resistance point around 1.3650, the pair is currently trading at 1.3590 this European morning. We see more downward correction to come today, leading to tests of the 1.3500 support for today.
GBP / USD
Cable already corrected downwards by almost 150 pips in early European trading from highs around 1.5250 to now 1.5110. We expect a pause in this selling mood with some recovery moves coming in soon, but not above 1.5160. Further weakness is in the cards today then, testing the 1.5060 level.
USD / CHF
The dollar lost further ground against the Swiss franc, right now about to test long-term support at around 1.1050 and currently trading at 1.1080. We expect that support level to hold in today’s trading, giving room for some recovery moves up to 1.1180.
USD / JPY
After consolidating its losses against the yen in Asian trading, the dollar is losing more territory in the early European market hours and is currently priced at 97.70. We do not expect much more downside in today’s market and rather see recovery moves to the 98.20 level.
