Never before has the world commonly undertaken such efforts to kick their respective economies onto the path of recovery. The Bank of England, for instance, lowered their interest rates to the lowest levels since the foundation of the institute 250 years ago. And even the reluctant ECB admits it had to throw in the towel. True, the AUD and the NZD are still having an interest rate premium over the rest of the world, but the market thinks it is only a matter of time until they have to give in, too. What does that mean for Forex?
Well, what you see is what you get - the chronic sideways market we experienced for months now seems like a new currency order. But for chart technicians it is a perfect world - no uncharted territory, just support / resistance and short-term trends.
We continue to concentrate on market- and chart-technical terms and these speak for an emerging uptrend for the dollar today. Right now the market is consolidating lower levels for the Greenback - see our projected trading bands in the majors for today below. Besides the noted market- and chart-technical terms, there is still today’s potential market mover - the U.S. trade balance for May, an important economic report at 14:30 CET. Expected is a slight increase in the deficit, so any improvement in the numbers (which is very well possible) would instantly render the dollar a pronounced bid tone.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Right now in early European trading, the euro is retreating against the dollar and is currently trading at 1.3900, above today’s support level of 1.3860. We expect that support level to hold in today’s market, giving room to recovery moves up to 1.3950. In later hours, another drop is in the cards, back to the 1.3860 mark.
GBP / USD
After a pronounced recovery against the dollar, the pound is consolidating its gains this European morning, currently priced at 1.6200 from lows around 1.6000. We do not see much more upside potential, rather a setback towards the lows around 1.6000.
USD / CHF
The dollar gained ground in early European trading against the Swiss franc and is currently trading at 1.0910. We expect more gains today, to a maximum of the resistance levels around the 1.0950 levels.
USD / JPY
After trading in very low volatility dureing the Asian session, the dollar is remaining in its sideways movement in early European trading, currently priced at 92.60 in a narrow trading band between 93.10 and 92.50. We see the lower end at 92.50 being broken soon today, leading to prices around 91.80.
Well, what you see is what you get - the chronic sideways market we experienced for months now seems like a new currency order. But for chart technicians it is a perfect world - no uncharted territory, just support / resistance and short-term trends.
We continue to concentrate on market- and chart-technical terms and these speak for an emerging uptrend for the dollar today. Right now the market is consolidating lower levels for the Greenback - see our projected trading bands in the majors for today below. Besides the noted market- and chart-technical terms, there is still today’s potential market mover - the U.S. trade balance for May, an important economic report at 14:30 CET. Expected is a slight increase in the deficit, so any improvement in the numbers (which is very well possible) would instantly render the dollar a pronounced bid tone.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Right now in early European trading, the euro is retreating against the dollar and is currently trading at 1.3900, above today’s support level of 1.3860. We expect that support level to hold in today’s market, giving room to recovery moves up to 1.3950. In later hours, another drop is in the cards, back to the 1.3860 mark.
GBP / USD
After a pronounced recovery against the dollar, the pound is consolidating its gains this European morning, currently priced at 1.6200 from lows around 1.6000. We do not see much more upside potential, rather a setback towards the lows around 1.6000.
USD / CHF
The dollar gained ground in early European trading against the Swiss franc and is currently trading at 1.0910. We expect more gains today, to a maximum of the resistance levels around the 1.0950 levels.
USD / JPY
After trading in very low volatility dureing the Asian session, the dollar is remaining in its sideways movement in early European trading, currently priced at 92.60 in a narrow trading band between 93.10 and 92.50. We see the lower end at 92.50 being broken soon today, leading to prices around 91.80.
