Despite the economic factors, which speak for a future inflation pressure on the dollar, the pure current market and technical facts point to a recovery in the US currency, at least for a few days. The market facts are the commodity prices, being way overbought now, which brought pressure on the dollar, and the technical fact is the still oversold position of the Greenback, hovering now again over major support postitions against the major pairs.

For today’s trading, we expect more recovery moves of the dollar, as explained in the major pair list belows. U.S. retail sales for May are being published at 14:30 CET, usually a market mover. Expected is a slight increase of the numbers.

by George Clement

Intraday Market Outlook for Day Traders

EUR / USD
The pair is in an undecided market now in European morning trading ,currently at 1.4015. We see downmoves to come in today’s trading, leading to levels around 1.3950.

GBP / USD
Cable is attempting to attack the 1.6500 handle in early European trading and is now at the 1.6465 mark. We do not expect the 1.6500 resistance level to be broken today, rather we see higher downside volatility, with underlying sell stops being hit below the 1.6320 level.

USD / CHF
In low volatility, the dollar is gaining some territory against the Swiss franc in early European trading, currently priced at 1.0785. We expect this move to continue today, to a maximum of 1.0850.

USD / JPY
The dollar lost ground against the yen in late Asian and early European trading and is currently priced at 97.75. We see this trend continuing today, leading to levels around 97.40.