Before the introduction of the euro, the old Atlantic bond between the Greenback and the British pound was much tighter and keeping volatility low. That changed remarkably, since the euro is the main trading partner of America now. Because the dollar and pound suffer the same fate now, i.e. future inflation sorrows because of their massive monetary and fiscal inflation, the volatility in this pair is shrinking. True, the pound’s economy is in a similar condition, but it has different trade relationship to the Far East. What is obvious is the higher volatility now against the dollar. With the summer doldrums now knocking on the door, we think it is wiser to trade higher volatility in the intraday market, in which we specialize.
The Greenback seems to be gaining some steam today in the European morning, still in oversold condition. Below are our projections for today in the major pairs, where we favor shorting the pound. There are no fundamentally market-moving economic data scheduled for today.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair is still trying to go higher in this European morning, but has lost steam, and is trading currently at 1.4390 at the lower end of a narrow trading band. We expect the lower support at 1.4380 to be broken soon today, giving way to more downward corrections, to the 1.4350 levels.
GBP / USD
In somewhat higher volatility compared to the euro, the pound tried to attack its resistance line just below 1.7000 again and is trading currently at 1.6970. We see downmoves to come in today’s market, to the 1.6850 level.
USD / CHF
The dollar is showing some recovery moves against the Swiss franc in early European trading and is currently priced at 1.0625 from lows around 1.0590. We expect more of these recovery moves to follow today, most probably testing the 1.0690 mark.
USD / JPY
Still caught in a trading band against the yen, the dollar recovered to the its upper end and is right now priced at 95.20. We expect that trading band to remain intact today, between 95.40 and 94.90.
The Greenback seems to be gaining some steam today in the European morning, still in oversold condition. Below are our projections for today in the major pairs, where we favor shorting the pound. There are no fundamentally market-moving economic data scheduled for today.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair is still trying to go higher in this European morning, but has lost steam, and is trading currently at 1.4390 at the lower end of a narrow trading band. We expect the lower support at 1.4380 to be broken soon today, giving way to more downward corrections, to the 1.4350 levels.
GBP / USD
In somewhat higher volatility compared to the euro, the pound tried to attack its resistance line just below 1.7000 again and is trading currently at 1.6970. We see downmoves to come in today’s market, to the 1.6850 level.
USD / CHF
The dollar is showing some recovery moves against the Swiss franc in early European trading and is currently priced at 1.0625 from lows around 1.0590. We expect more of these recovery moves to follow today, most probably testing the 1.0690 mark.
USD / JPY
Still caught in a trading band against the yen, the dollar recovered to the its upper end and is right now priced at 95.20. We expect that trading band to remain intact today, between 95.40 and 94.90.
