The week seems to be ending like it has in all these times of economic uncertaintiy - with a sideways trend despite some hyper-optimistic stock markets. But this optimism could stem just from short covering before vacations, too, so Forex was not impressed very much by now. Still trading at its long-term support zones, the dollar remains in its narrow ranges aginst the majors, refusing to lose more territority.

We see that trend continuing today, leaving the major pairs in a somewhat tighter, but still tradable band, as described below in detail. There are no U.S. market-moving data scheduled for today - the IFO business climate index for Germany this European morning brought no surprise - more or less unchanged, as expected.

by George Clement

Intraday Market Outlook for Day Traders

EUR / USD
The pair took up some bid tone this European morning, although in very low volatilty, from lows around 1.4130 yesterday to now 1.4220. We still expect the 1.4300 resistance level to hold today, should it come to a test of it. But we doubt even that, seeing the market may soon lose steam today, leading to the old lows around 1.4130 again.

GBP / USD
After testing the 1.6550 resistance level, cable fell back to the current 1.6435 level in early European trading. We expect a trading range for today between the levels of 1.6320 and the 1.6490.

USD / CHF
The dollar is starting to develop a slight bid tone against the Swiss franc in these early European trading hours, recovering from its support zones around 1.0650 to now 1.0707. We see that recovery continuing slowly today, leading to zones around the 1.0720 levels.

USD / JPY
Consolidating its recent gains against the yen, the dollar is currently trading at 94.90. We expect some more upwards movement today, but not above a maximum of 95.20.