After the drop of consumer confidence for June in the U.S. and Japanese and British economic data showing a similar picture, the fate of the world economy still remains in the dark. No wonder then that Forex markets remain in the old sideways market we’ve experienced for months. Currently, there is simply no reason to detect some decisive move in the majors against the USD - except the notion that the U.S. will come longer term first out of recession, and suffer inflation first, therefore hurting America’s currency. But that does not bring much in the shorter-term view, which still points to a sideways market.
Right now, and for today’s trading, the dollar still shows a mild overbought condition, currently on a correction move. Acoordingly, we expect some down movements against the major pairs, within the trading bands described below. The EUR / USD and GBP / USD have some upward potential in the cards today. Note the U.S. ISM Index for June, published at 16:00 CET, which could bring additional volatility to the market. Expected is another improvement from negative territory.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Currently on a recovery move, the pair is on its way to test major resiststance levels around 1.4140, currently trading at 1.4060. We expect these levels to be tested today, but not broken. Some retreat from there is likely, but not beyond the present marks.
GBP / USD
Cable is rather on the weak side this European morning, trading in low volatility, currently at 1.6425. We do not see the 1.6400 handle level broken today, which would serve as a springboard to higher prices around 1.6490.
USD / CHF
The dollar continued to lose steam against the Swiss franc in early European trading and is currently priced at 1.0825. We see lower prices for today, but not below a maximum of 1.0780.
USD / JPY
Against the yen, the dollar is consolidating its higher levels reached in Asian trading in this European morning. Currently trading around the 96.70 support level, we expect another breakout upwards, to prices around 97.50.
Right now, and for today’s trading, the dollar still shows a mild overbought condition, currently on a correction move. Acoordingly, we expect some down movements against the major pairs, within the trading bands described below. The EUR / USD and GBP / USD have some upward potential in the cards today. Note the U.S. ISM Index for June, published at 16:00 CET, which could bring additional volatility to the market. Expected is another improvement from negative territory.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Currently on a recovery move, the pair is on its way to test major resiststance levels around 1.4140, currently trading at 1.4060. We expect these levels to be tested today, but not broken. Some retreat from there is likely, but not beyond the present marks.
GBP / USD
Cable is rather on the weak side this European morning, trading in low volatility, currently at 1.6425. We do not see the 1.6400 handle level broken today, which would serve as a springboard to higher prices around 1.6490.
USD / CHF
The dollar continued to lose steam against the Swiss franc in early European trading and is currently priced at 1.0825. We see lower prices for today, but not below a maximum of 1.0780.
USD / JPY
Against the yen, the dollar is consolidating its higher levels reached in Asian trading in this European morning. Currently trading around the 96.70 support level, we expect another breakout upwards, to prices around 97.50.
