The rally in stock markets has put a lid on the dollar’s performance since June, and have so far brought nothing more than a repeated test of its long-term support lines. Obviously it becomes clear that the euro is in no better condition, fundamentally, than the dollar. While we do not project real new strength for the dollar in the near term, it is obvious that especially the EUR / USD market is heavily overbought again, and moving in long-term resistance zones. We still see an upward correction for the USD in the coming days against the other major currencies.
The dollar is weak again against its major trading partner, the euro, making it heavily oversold this European morning. We expect countermoves to set in today, bringing some normality to the overheated EUR / USD relation. Note the market-moving economic data for today will be U.S. personal income and personal spending for June, both released at 14:30 CET. So far only slight improvements are expected.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Again attacking long-term resistance lines against the dollar, the pair is in an upmove this European morning. With the market currently trading at 1.4405, we expect that upmove to lose steam today, leading to downward corrections towards the 1.4250 levels.
GBP / USD
The pound is just hovering below its long-term resistance lines against the dollar in the early European trading hours and is currently priced at 1.6940. We do not see much of that picture changing today, and expect a sideways trend between the present level on the upside and 1.6850 on the downside.
USD / CHF
The dollar is not showing much action this European morning, moving in a tight trading band against the Swiss franc, and currently priced at 1.0625 in the middle of the trading range. We see that trading range remaining intact for today, between the levels of 1.0660 and 1.0570.
USD / JPY
After a dull Asian session, the dollar experienced an unusual drop this European morning, coming from highs at 95.40 to now 94.60. Stop-loss selling in a thin market may well be the reason for that. We therefore do not see much more downside risk for this market, expecting rather a recovery up to levels of 94.85.
The dollar is weak again against its major trading partner, the euro, making it heavily oversold this European morning. We expect countermoves to set in today, bringing some normality to the overheated EUR / USD relation. Note the market-moving economic data for today will be U.S. personal income and personal spending for June, both released at 14:30 CET. So far only slight improvements are expected.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Again attacking long-term resistance lines against the dollar, the pair is in an upmove this European morning. With the market currently trading at 1.4405, we expect that upmove to lose steam today, leading to downward corrections towards the 1.4250 levels.
GBP / USD
The pound is just hovering below its long-term resistance lines against the dollar in the early European trading hours and is currently priced at 1.6940. We do not see much of that picture changing today, and expect a sideways trend between the present level on the upside and 1.6850 on the downside.
USD / CHF
The dollar is not showing much action this European morning, moving in a tight trading band against the Swiss franc, and currently priced at 1.0625 in the middle of the trading range. We see that trading range remaining intact for today, between the levels of 1.0660 and 1.0570.
USD / JPY
After a dull Asian session, the dollar experienced an unusual drop this European morning, coming from highs at 95.40 to now 94.60. Stop-loss selling in a thin market may well be the reason for that. We therefore do not see much more downside risk for this market, expecting rather a recovery up to levels of 94.85.
