Again the dollar reacted to its oversold position, correcting upwards against the majors. Any decisive trend still cannot be detected, with the global economies still giving the signal of slowing the recession but that the worst is over. It is a very rare phenomenon, that global developments like these move in tandem. No wonder the Forex market is puzzled, although the fundamental expectation still is that the U.S. will come out of recession first and will be the first to suffer from inflation. That puts a lid on the dollar, but so far the Greenback is showing remarkable restistance. But we still expect some downmoves for the Greenback for the rest of next week, given the currently short-term overbought condition of the currency.
In the early European hours, the dollar already shows some correction moves to the downside. We expect these to gain some momentum today, although in low volatility. See the projected trading bands in the majors below. There are no market-moving fundamental data scheduled for today.
Due to the Swiss National Holiday weekend, our next publication will be Tuesday, August 4th.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair attempted a recovery so far this European morning and is trading currently at 1.4070, slightly higher than the lows around 1.4010. Some more momentum in this recovery can set in today, but not significantly above 1.4120.
GBP / USD
The pound is about to attempt another attack on the 1.6600 resistance level in the early European trading hours, currently priced at 1.6510. We do not expect the 1.6600 resistance to be broken today, but repeatedly tested.
USD / CHF
The dollar continued to hover above its support line (1.0850), currently trading at 1.0875 in the early European hours. We see some more weakness emerging today, testing eventually the 1.0850 major support line.
USD / JPY
Caught in a narrow trading band against the yen, the dollar is right now priced at 95.02. We expect that trading band between 94.85 and 95.20 to remain intact in today’s trading, with both sides repeatedly tested.
In the early European hours, the dollar already shows some correction moves to the downside. We expect these to gain some momentum today, although in low volatility. See the projected trading bands in the majors below. There are no market-moving fundamental data scheduled for today.
Due to the Swiss National Holiday weekend, our next publication will be Tuesday, August 4th.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair attempted a recovery so far this European morning and is trading currently at 1.4070, slightly higher than the lows around 1.4010. Some more momentum in this recovery can set in today, but not significantly above 1.4120.
GBP / USD
The pound is about to attempt another attack on the 1.6600 resistance level in the early European trading hours, currently priced at 1.6510. We do not expect the 1.6600 resistance to be broken today, but repeatedly tested.
USD / CHF
The dollar continued to hover above its support line (1.0850), currently trading at 1.0875 in the early European hours. We see some more weakness emerging today, testing eventually the 1.0850 major support line.
USD / JPY
Caught in a narrow trading band against the yen, the dollar is right now priced at 95.02. We expect that trading band between 94.85 and 95.20 to remain intact in today’s trading, with both sides repeatedly tested.
