With the economic outlook brightening up, it’s no wonder the Greenback is coming under pressure, given the inflationary potential for this currency. But market and technical factors speak for a deeply oversold position now, with all the sell stops being defused and the technical indicators in deep south. We do not expect much more downside risk in the currency, rather see some recovery potential during this week.

For today’s trading, we expect some upmoves in the USD versus the majors, as explained below. There are no fundamental market-moving indicators scheduled for today, so pure market and technical focus can be applied.

by George Clement

Intraday Market Outlook for Day Traders

EUR / USD
Consolidating its higher levels, the pair is currently trading at 1.3970 in the early European hours. We do not see much more upside potential today, expecting a trading band with a downward slope, limited at the upside to 1.3990 and at the downside to 1.3880.

GBP / USD
Longer term heavily overbought, cable is moving in low volatility below its 1.5900 handle level this European morning and is right now at 1.5880. We do not expect this 1.5900 level to be broken in today’s trading and expect downward moves from there, if tested again, to levels around 1.5780.

USD / CHF
Moving into deep oversold levels against the Swiss franc, the dollar is currently trading at 1.0860 in early European trading. A recovery move is now in the cards, probably leading to levels around 1.0980 again.

USD / JPY
Against the yen, the dollar recovered in late Asian trading, consolidating its higher levels now in this European morning, Currently priced at 94.98, we expect more upward momentum to come today, to the 95.25 mark.