It needed only a pessimistic stance of the global stock markets to support the dollar again, as we have seen many times for half a year. On the other hand, the dollar was oversold against many currencies and stock markets were overbought, in the hope of economic recovery. Considering the global economic data, the optimistic mood for stock markets will undoubtedly return again, and therefore put more pressure on the dollar due to the projected inflation later this year.

In today‘s trading, we expect recovery moves of the major currencies against the USD, trading right now in oversold market conditions on support levels. Below are our projections for today‘s trading bands where we expect a selling tone for the dollar today. There are no market-moving fundamental data scheduled for today.

by George Clement

Intraday Market Outlook for Day Traders

EUR / USD
The pair is in recovery mood this European morning, coming from lows around 1.3800, trading now at 1.3905. We expect the recovery to continue today, testing the 1.4020 resistance level.

GBP / USD
Cable recovered further in early European trading, currently priced at 1.6115, with resistance around the 1.6200 handle level. We do not expect much more upside potential for today, rather a sideways market between the 1.6200 / 1.6100 marks.

USD / CHF
The dollar lost further ground in European morning trading and is currently at 1.0902 against the Swiss franc. This is a minor support zone, which we expect to be broken today, bringing the market to levels around 1.0820.

USD / JPY
In low volatilty and in a mild bid tone right now, the dollar is hovering above the 98.00 support level, currently trading at 98.20. We expect the 98.00 support level to hold for today, and see further recovery moves up to the 98.50 level.