In these times with controversial fundamental opinions, it is best to focus on pure market and technical factors. One fundamental factor is a fragmented and very thin market that is charactarized by lurking buy- or sell-stop orders at key levels in the USD. Or consider the chart-technical factor, illustrating a tight trading band between certain supports or resistances, as it looks now in the European morning, the USD is on its recovery path within wellknown trading bands since the beginning of the year.
Accordingly, we do not put much weight on fundamental factors today, rather expecting a continued bid tone for the USD - although a few market-moving data are awaiting us, like the U.S. consumer prices for April and Empire Manufacturing, at 14:30 CET, and U.S. industrial production and capacity utilization for April, at 15:15 CET. Check our detailed projections below of the trading bands in the major pairs.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Still in its now three-day-old sideways trading channel, the pair currently is trading downwards in early European hours and is priced right now at 1.3560. The intraday support level at 1.3550 will soon be met and most probably broken on the downside later today, leading to lower levels around 1.3500.
GBP / USD
Still in unusual low volatility, cable is trading at 1.5170 this European morning, caught in a narrow channel between 1.5250 and 1.5130. We expect the lower end of this channel to be tested today, with not much more market activity later.
USD / CHF
Still hovering above the 1.1050 support level, presently trading at 1.1090 against the Swiss franc, the dollar has seemingly lost any clear direction. We do not expect this picture to change much in today’s trading and project a dull trading band between 1.1100. and 1.1050.
USD / JPY
The dollar is attempting to lose more ground against the yen this European morning, however meeting very stiff long-term support zones now, currently trading around 94.90. We expect these levels to hold in today’s trading, projecting recovery moves to a maximum of 95.80.
Accordingly, we do not put much weight on fundamental factors today, rather expecting a continued bid tone for the USD - although a few market-moving data are awaiting us, like the U.S. consumer prices for April and Empire Manufacturing, at 14:30 CET, and U.S. industrial production and capacity utilization for April, at 15:15 CET. Check our detailed projections below of the trading bands in the major pairs.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Still in its now three-day-old sideways trading channel, the pair currently is trading downwards in early European hours and is priced right now at 1.3560. The intraday support level at 1.3550 will soon be met and most probably broken on the downside later today, leading to lower levels around 1.3500.
GBP / USD
Still in unusual low volatility, cable is trading at 1.5170 this European morning, caught in a narrow channel between 1.5250 and 1.5130. We expect the lower end of this channel to be tested today, with not much more market activity later.
USD / CHF
Still hovering above the 1.1050 support level, presently trading at 1.1090 against the Swiss franc, the dollar has seemingly lost any clear direction. We do not expect this picture to change much in today’s trading and project a dull trading band between 1.1100. and 1.1050.
USD / JPY
The dollar is attempting to lose more ground against the yen this European morning, however meeting very stiff long-term support zones now, currently trading around 94.90. We expect these levels to hold in today’s trading, projecting recovery moves to a maximum of 95.80.
