Mixed economic data yesterday from both sides of the Atlantic seemed to provoke weakness in the pair, giving the USD strength in other pairs, too. But the Greenback was longer term oversold anyway, whith the sell stops washed out of the market already. Sometimes it is better to seek for reasons of movements in the technical picture alone, which is now still speaking for some more upmovement in the USD.
In today`s trading, we expect some consolidation of the higher levels of the USD first, and then some more strength, as explained in detail in below`s major pairs list. Interesting today would be US durable goods orders data for April, scheduled for 14:30 CET - expected is a slight increase.
by George Clement
Intraday Market Outlook for Day Traders
EUR/USD
The pair attempted a slight recovery move this European morning from its lower levels but currently falling back again, to the 1.3850 mark, right above intermediate support. We see that support only to hold for a while in today`s trading, and later a further fall to 1.3750.
GBP/USD
Cable consolidates its lower grounds in early European morning, trading in low volatility right now at 1.5930. We expect the volatility to increase on the downside in today`s trading, leading to levels around 1.5860.
USD/CHF
Although it is not an ouright strength, the Dollar slowly recovers against the Swiss Franc, currently priced at 1.0920. We expect that slow recovery to continue today,
testing first the 1.0950 level and then breaking it on the upside.
USD/JPY
With unusual upside volatility the Dollar strengthened in all of Asian trading, bringing the market to the current 96.80 in this European morning. We expect a consolidation phase for the further today's trading, with volatility returning to low levels again.
