With global equities markets on retreat in this week’s trading start, the USD was supported by its now 9-month inverse correlation. But now in overbought territory once again this year, we doubt that the Greenack’s strength will have much consistency for the rest of this week. All that is needed now to bring the dollar lower is a slap in its face by stock markets regaining more confidence. That could very well happen this week, considering the equally oversold position of the equity markets right now.
Accordingly, we expect downward pressure on the USD for today. See our detailed major pairs list for the projected turning points in today’s market below. Some influence on the market today could be State Street Bank's confidence index for June, due at 16:00 CET, and the sales of existing homes for May, due at the same time. Both indicators are expected to show slight improvement.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair is on recovery course this European morning, currently trading at 1.3930. We expect some downward correction now, but not below levels around 1.3880 - which will serve as a springboard to further upmoves, to a maximum of 1.3970 in today’s trading.
GBP / USD
Cable is fighting hard not to go below the 1.6225 level and is currently priced at 1.6245. We consider the 1.6225 level as today’s hard support and any movement to this mark will result in an upmove. Later in the day, we expect more strength to develop, to the 1.6340 mark.
USD / CHF
The dollar suffered a bout of weakness in this European morning against the Swiss franc, currently trading at 1.0790. There is some upward correction potential now, but not much – up to the 1.0820 mark, then we expect more downward pressure, eventually testing the 1.0690 support level.
USD / JPY
Again consolidating at lower levels, the dollar currently is trading in a quiet market against the yen in early European hours, priced right now at 95.30. We do not expect much activity in this market today, trading in a band between 95.35 and 95.00, until the Asian trading hours begin, where further weakness of the dollar can be expected.
Accordingly, we expect downward pressure on the USD for today. See our detailed major pairs list for the projected turning points in today’s market below. Some influence on the market today could be State Street Bank's confidence index for June, due at 16:00 CET, and the sales of existing homes for May, due at the same time. Both indicators are expected to show slight improvement.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair is on recovery course this European morning, currently trading at 1.3930. We expect some downward correction now, but not below levels around 1.3880 - which will serve as a springboard to further upmoves, to a maximum of 1.3970 in today’s trading.
GBP / USD
Cable is fighting hard not to go below the 1.6225 level and is currently priced at 1.6245. We consider the 1.6225 level as today’s hard support and any movement to this mark will result in an upmove. Later in the day, we expect more strength to develop, to the 1.6340 mark.
USD / CHF
The dollar suffered a bout of weakness in this European morning against the Swiss franc, currently trading at 1.0790. There is some upward correction potential now, but not much – up to the 1.0820 mark, then we expect more downward pressure, eventually testing the 1.0690 support level.
USD / JPY
Again consolidating at lower levels, the dollar currently is trading in a quiet market against the yen in early European hours, priced right now at 95.30. We do not expect much activity in this market today, trading in a band between 95.35 and 95.00, until the Asian trading hours begin, where further weakness of the dollar can be expected.
