After yesterday’s bout of weakness of the dollar against the euro which drove the EUR / USD up to the resistance zone at 1.4000, the Greenback is tending to weaken in this European morning, a trend which we do not believe to have sustainablity in today’s trading. The technical factors still speak for a moderately bullish tone in the USD. How moderate will depend on today’s "triple witching hours” on both sides of the Atlantic around 17:30 and 22:15 CET. We expect more strength of the USD after these times.

Accordingly, we set our trading bands for the USD higher in our major pairs’ description below. Other fundamentally market-moving data are not scheduled for today.

by George Clement

Intraday Market Outlook for Day Traders

EUR / USD
Hovering above support in low volatility in European morning trading, the pair is currently at 1.3915, a level which we expect to be broken soon on the downside. In today’s trading, we see the 1.3820 mark being tested.

GBP / USD
Cable is on the rise in early European trading, attacking the 1.6450 resistance level, now trading around the 1.6440 mark. As we see it, the 1.6450 reistance zone will not be broken in today’s trading hours, rather giving way to downmoves to zones around 1.6320.

USD / CHF
In narrow trading ranges, the dollar is on a slight bid tone against the Swiss franc in early European trading and is currently priced at 1.0850. We see the bid tone continuing in today’s trading, eventually reaching levels around 1.0940.

USD / JPY
After a dull Asian session, the dollar strengthened against the yen in early European hours and is currently trading at 96.95, near this morning’s highs around 97.10. We expect the bid tone to continue today, reaching levels at a maximum of 97.90