Despite conflicting economic data lately, the Greenback remains range-bound, reacting only to oversold or overbought conditions. Meanwhile, the G-8 summit revealed that the global economy is still in need of recovery funds; a fact that is well known by now. At the same time, the IMF published a report that the global economy is apparantly off its worst levels. No wonder then that Forex is remaining on the sidelines for now, waiting for harder facts.
So we concentrate once more on pure chart-technical factors today, which speak for a down movement for the dollar, as explained in detail below in the major currency pairs’ list. Despite our favored weighting on chart-technical aspects right now, one cannot ignore the importance of today’s publication of U.S. retail sales for June and U.S. producer price data, both at 14:30 CET, which is expected to show an improving economy in the U.S. This as well as the disappointing ZEW Survey (actual was 39.5 while 44.2 was expected) speaks for a weaker dollar.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Hovering above a support zone at 1.3960, the pair is currently trading at 1.3980. We expect this support zone to hold in today’s trading, later bringing the market to above 1.4040.
GBP / USD
The pound is on a recovery path this European morning against the dollar, priced right now at 1.6323, and soon bumping into stiff resistance. We do not expect much downside risk for this market today, more or less sideways trading between 1.6230 and 1.6370.
USD / CHF
The dollar is moving in low volatility against the Swiss franc this European morning, without much in the way of directional moves, and is currently priced at 1.0840. We expect this sideways market to continue today, between 1.0810 and 1.0870.
USD / JPY
In Asian trading, the dollar climbed steadily against the yen and continues to do so in early European trading, currently priced at 93.15. We expect that trend to remain in today’s trading, bringing the market up to near 94.00.
So we concentrate once more on pure chart-technical factors today, which speak for a down movement for the dollar, as explained in detail below in the major currency pairs’ list. Despite our favored weighting on chart-technical aspects right now, one cannot ignore the importance of today’s publication of U.S. retail sales for June and U.S. producer price data, both at 14:30 CET, which is expected to show an improving economy in the U.S. This as well as the disappointing ZEW Survey (actual was 39.5 while 44.2 was expected) speaks for a weaker dollar.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Hovering above a support zone at 1.3960, the pair is currently trading at 1.3980. We expect this support zone to hold in today’s trading, later bringing the market to above 1.4040.
GBP / USD
The pound is on a recovery path this European morning against the dollar, priced right now at 1.6323, and soon bumping into stiff resistance. We do not expect much downside risk for this market today, more or less sideways trading between 1.6230 and 1.6370.
USD / CHF
The dollar is moving in low volatility against the Swiss franc this European morning, without much in the way of directional moves, and is currently priced at 1.0840. We expect this sideways market to continue today, between 1.0810 and 1.0870.
USD / JPY
In Asian trading, the dollar climbed steadily against the yen and continues to do so in early European trading, currently priced at 93.15. We expect that trend to remain in today’s trading, bringing the market up to near 94.00.
