After a weak dollar market yesterday, the EUR / USD and other pairs are trying to consolidate their gains in this European morning. But they are hovering just below the well-known resistance levels against the dollar, expressed in the EUR / USD by 1.4150. The also well-known inverse correlation between the Greenback and the stock markets helped weaken the U.S. currency, but the quick positive start of equities into this week is most probably losing its tune now. We therefore expect some bid tone for the dollar to emerge before the week ends.

See our projected trading bands for today’s trading hours in the major pairs below. There are no special market-moving data on today’s agenda.

by George Clement

Intraday Market Outlook for Day Traders

EUR / USD
Currently on another attack at the 1.4150 resistance level, the pair is trading right now at 1.4080. We expect at maximum the 1.4150 level to hold today, giving room to a substantial down correction to the 1.3950 mark.

GBP / USD
Ahead of the euro, the pound is already in some retreat against the dollar in this European morning. Trading around 1.6380 right now, we see more weakness for the pound to come in today’s trading, in low volatility, to levels down to about 1.6250.

USD / CHF
The Greenback found support against the Swiss franc around the critical 1.0700 level, now trading at 1.0760. We expect not much more downside risk, rather a recovery to the 1.0840 mark.

USD / JPY
The dollar lost ground in almost all of Asian trading against the yen and continues to lose in early European trading. We expect a pause in this movement soon, with the market now trading on support around 93.70. Later on the support will be broken, and the market driven to the 93.20 level.