The week started in a good mood for both the economy and the stock markets, supported by more positive economic news from the U.S. and further recovery in the commodity markets. Although it is just one sign that we have come out of the trough in the U.S., the U.S. dollar reacted to the good news as it usually does in such times: trending weaker because of future inflation fears. This illustrates the expected result of exceptional fiscal and monetary expansion. While we keep in mind that the euro will probably be in the same boat later, the repeated weakness of the Greenback is a factor to reckon with in the near future. Also, with more positive news this week from the financial sector, we expect repeated selling moves in the dollar for the next few days.
In today‘s trading, we would wait for an upward correction of the USD in the major pairs, looking for ideal selling points as described in major pairs list below. Today‘s U.S. housing starts and housing permits for April at 14:30 CET could trigger such selling in the U.S. dollar as better data from the building sector is expected.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Developing even more strength this European morning, the pair is about to attack the longer-term resistance line around the 1.3700 zone. Right now trading at 1.3630, we expect the buying mood to slow down first, correcting back to the 1.3580 level, before new upward momentum can be expected.
GBP / USD
Cable is again in an upward thrust in early European trading, with the current price at 1.5460 testing the long-term resistance zone. This hurdle is hard to overcome and, considering the heavily overbought situation now, we expect downward corrections today, to the support level around 1.5350.
USD / CHF
The dollar is in oversold condition in this European morning, currently trading at 1.1110 against the Swiss franc. We do not see much more downside risk in today’s trading, rather a consolidation of the now-reached lower levels. In this process, recovery moves up to 1.1150 can be expected.
USD / JPY
After recovering against the yen, the dollar is consolidating its gains this European morning and is currently trading at 96.35. We expect this consolidation move to continue today, within the 96.70 and 96.10 marks.
In today‘s trading, we would wait for an upward correction of the USD in the major pairs, looking for ideal selling points as described in major pairs list below. Today‘s U.S. housing starts and housing permits for April at 14:30 CET could trigger such selling in the U.S. dollar as better data from the building sector is expected.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Developing even more strength this European morning, the pair is about to attack the longer-term resistance line around the 1.3700 zone. Right now trading at 1.3630, we expect the buying mood to slow down first, correcting back to the 1.3580 level, before new upward momentum can be expected.
GBP / USD
Cable is again in an upward thrust in early European trading, with the current price at 1.5460 testing the long-term resistance zone. This hurdle is hard to overcome and, considering the heavily overbought situation now, we expect downward corrections today, to the support level around 1.5350.
USD / CHF
The dollar is in oversold condition in this European morning, currently trading at 1.1110 against the Swiss franc. We do not see much more downside risk in today’s trading, rather a consolidation of the now-reached lower levels. In this process, recovery moves up to 1.1150 can be expected.
USD / JPY
After recovering against the yen, the dollar is consolidating its gains this European morning and is currently trading at 96.35. We expect this consolidation move to continue today, within the 96.70 and 96.10 marks.
