The present global economic condition is still uncertain, as illustrated yesterday by the bad U.S. housing figures for April. In Forex, the EUR / USD, USD / CHF and GBP / USD are right now back in their old trading bands, presently trading at the lower support zones of the dollar again. The phenomenon of a simultaneous and rapid global economic slowdown we experienced over the last 8 months seems not only to puzzle the stock markets but Forex as well. Beyond that, we saw oil first surging from very low levels to $140 a barrel, then falling within 5 months to $33, and then doubling again within 2 months to over $60 a barrel. At least the stock markets picked up some positive territory this week, therefore giving a sign for a weaker USD, provided that the current inverse relationship between the USD and equities is still intact.
But, for today‘s trading, we see some more upward correction in the Greenback, given its still oversold condition. See our detailed projection of the trading bands in the major pairs below. After this European morning‘s rather disappointing German economic figures, usually important for the Eurozone, we do not expect a lot of volatility in the EUR / USD pair. Otherwise, there are no more fundamentally market-moving data scheduled for today.
Due to the holiday in Switzerland tomorrow, our next report will appear on Friday, May 22.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Attacking again the 1.3650 / 1.3700 resistance zone, the pair recovered in early European trading hours, currently priced at 1.3645. We see that recovery move to ease in today’s trading, failing to break the mentioned resistance zone. A move back to the 1.3550 support is eventually in the cards.
GBP / USD
Cable is consolidating its higher levels this European morning, trading currently at 1.5530. Still in heavily overbought condition, we do not expect much more upward momentum, rather a downmove to the 1.5450 support level today.
USD / CHF
Hovering above support zones against the Swiss franc, the dollar is priced right now at 1.1080. We expect recovery moves in today’s trading, leading to levels around the 1.1120 mark.
USD / JPY
The dollar is on a slight downmove in early European trading against the yen, currently priced at 95.90. We expect some recovery to set in today, testing the 96.20 resistance level.
But, for today‘s trading, we see some more upward correction in the Greenback, given its still oversold condition. See our detailed projection of the trading bands in the major pairs below. After this European morning‘s rather disappointing German economic figures, usually important for the Eurozone, we do not expect a lot of volatility in the EUR / USD pair. Otherwise, there are no more fundamentally market-moving data scheduled for today.
Due to the holiday in Switzerland tomorrow, our next report will appear on Friday, May 22.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Attacking again the 1.3650 / 1.3700 resistance zone, the pair recovered in early European trading hours, currently priced at 1.3645. We see that recovery move to ease in today’s trading, failing to break the mentioned resistance zone. A move back to the 1.3550 support is eventually in the cards.
GBP / USD
Cable is consolidating its higher levels this European morning, trading currently at 1.5530. Still in heavily overbought condition, we do not expect much more upward momentum, rather a downmove to the 1.5450 support level today.
USD / CHF
Hovering above support zones against the Swiss franc, the dollar is priced right now at 1.1080. We expect recovery moves in today’s trading, leading to levels around the 1.1120 mark.
USD / JPY
The dollar is on a slight downmove in early European trading against the yen, currently priced at 95.90. We expect some recovery to set in today, testing the 96.20 resistance level.
