The selling tone eased somewhat in late trading yesterday and went into a consolidation phase in this European morning. We are ahead of the publication of the monetary policy of the Bank of England and the European Central Bank tomorrow, where statements of more "credit easing" are expected. Since the Fed hinted that their part of such a policy could end soon, it is no wonder that the money flow turned towards Europe - with prospects of short-term capital gains in the bond market.
In today’s trading, ahead of tomorrow’s BoE and ECB publications, we would not enter more short positions in the USD, based also on its heavily oversold situation in the market. See below our trading band projections in the majors.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Correcting its overbought condition, the pair is retreating in this European morning and is currently trading at 1.4235, back from highs around 1.4330. We do not expect much more upside potential today, ahead of tomorrow’s ECB publication of its monetary policy. More likely is a testing of the 1.4150 mark.
GBP / USD
Cable attempted to meet its upside resistance around the 1.6700 level yesterday, but is now falling back in early European trading to currently 1.6540. We see further down corrections in today’s trading, out of overbought conditions, into the 1.6450 level.
USD / CHF
The dollar regained some lost territory against the Swiss franc in early European trading and is currently priced at 1.0690. We expect that recovery to continue in low volatility today, to a maximum around the 1.0740 mark.
USD / JPY
Defending its higher levels against the yen, the dollar is trading in a quiet European morning market, currently priced at 96.10. We do not expect much change in the established trading bands of 96.50 / 95.60 in today’s trading.
In today’s trading, ahead of tomorrow’s BoE and ECB publications, we would not enter more short positions in the USD, based also on its heavily oversold situation in the market. See below our trading band projections in the majors.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Correcting its overbought condition, the pair is retreating in this European morning and is currently trading at 1.4235, back from highs around 1.4330. We do not expect much more upside potential today, ahead of tomorrow’s ECB publication of its monetary policy. More likely is a testing of the 1.4150 mark.
GBP / USD
Cable attempted to meet its upside resistance around the 1.6700 level yesterday, but is now falling back in early European trading to currently 1.6540. We see further down corrections in today’s trading, out of overbought conditions, into the 1.6450 level.
USD / CHF
The dollar regained some lost territory against the Swiss franc in early European trading and is currently priced at 1.0690. We expect that recovery to continue in low volatility today, to a maximum around the 1.0740 mark.
USD / JPY
Defending its higher levels against the yen, the dollar is trading in a quiet European morning market, currently priced at 96.10. We do not expect much change in the established trading bands of 96.50 / 95.60 in today’s trading.
