The debate whether the USD will lose further value or not is growing hot again, both among fundamentalists and technicians. From the fundamental front, there will be a hint this week by the publication of the U.S. GDP Q2 next Friday. A much smaller contraction is expected, but any better improvement will hurt the dollar because of its hidden inflationary potential. And, from the technical side, the USD still hovers on support, best illustrated by its most important trade partner, the euro. At the beginning of this week, the EUR / USD is again attacking its long-term resistance zone. In our judgment of the market, we stick to what we see: an oversold market for the dollar and currently trading on a long-term support zone. Accordingly, we still expect some recovery for the Greenback.
For today’s trading, we expect the selling tone for the USD to ease, but, considering the beginning holiday season, we do not count on much volatility. So very short-term trades within the ranges described below in the majors would be the best strategy. There are no market-moving economic indicators scheduled for today.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair continues to attack the 1.4350 resistance line at the start of the week, while retreating a little in the early European hours, and is trading currently at 1.4250. We still see the 1.4350 zone not being surpassed and expect downward correction moves to the zones around 1.4100.
GBP / USD
In an undecisive mood this European morning, cable is currently recovering somewhat, trading right now at 1.6450. The 1.6550 resistance zone will be hard to break and we expect the market to soon lose steam against the dollar. Setbacks to 1.6390 are possible in in today’s trading.
USD / CHF
There is little change in the overall picture of this market, with the dollar still trading at its support zones against the Swiss franc, right now priced at 1.0690. We expect recovery moves to emerge today, leading to levels around 1.0750.
USD / JPY
The dollar is in an attack move to the 95.20 resistance level that began in early European hours and is right now trading at 95.05. We doubt that the resistance line will be broken today and see setbacks to 94.50.
For today’s trading, we expect the selling tone for the USD to ease, but, considering the beginning holiday season, we do not count on much volatility. So very short-term trades within the ranges described below in the majors would be the best strategy. There are no market-moving economic indicators scheduled for today.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair continues to attack the 1.4350 resistance line at the start of the week, while retreating a little in the early European hours, and is trading currently at 1.4250. We still see the 1.4350 zone not being surpassed and expect downward correction moves to the zones around 1.4100.
GBP / USD
In an undecisive mood this European morning, cable is currently recovering somewhat, trading right now at 1.6450. The 1.6550 resistance zone will be hard to break and we expect the market to soon lose steam against the dollar. Setbacks to 1.6390 are possible in in today’s trading.
USD / CHF
There is little change in the overall picture of this market, with the dollar still trading at its support zones against the Swiss franc, right now priced at 1.0690. We expect recovery moves to emerge today, leading to levels around 1.0750.
USD / JPY
The dollar is in an attack move to the 95.20 resistance level that began in early European hours and is right now trading at 95.05. We doubt that the resistance line will be broken today and see setbacks to 94.50.
