With the fundamental observers running out of arguments - we wonder why the dollar is still defending its levels - it is best to focus on the chart technical factors. By the way, this is not unusual in the holiday season, with many of the participants in the commodity and financial sector absent, illustrated by the shrinking volume of the market. So we continue to read the market and technical factors closely, which are still pointing to a recovery for the dollar in the short term.

That can be positive, because a majority of the market pariticipants are following in their intraday trading, all using the same resistance and support levels. So there is little risk for overshooting these marks, as the dollar often does in more volatile days. Though there is still a risk for wild movements today: U..S inital claims, hourly earnings, unemployment rate and non-farm payrolls, all for July, are scheduled for release at 14:30. Expected are slight improvements in the numbers, which would not influence the market much.

by George Clement

Intraday Market Outlook for Day Traders

EUR / USD
This market started very quietly in European morning trading, just on its lower levels against the dollar. Currently trading at 1.4350, we expect only a slight improvement to 1.4360 at the maximum, giving way then to another downmove to the 1.4340 level.

GBP / USD
The pound continued its downward trend that set in yesterday against the dollar. Right now priced at 1.6750, we expect an upward reaction to set in today, but not much above 1.6820.

USD / CHF
The dollar is consolidating its meager gains against the Swiss franc and is trading right now at 1.0650 from lows around 1.0590 yesterday. We see that consolidation continuing today in low volatility, with some further recovery moves to 1.0690.

USD / JPY
Trading just between 95.55 and 95.05 against the yen, the dollar is experiencing a very dull market in Europe, currently priced at 95.20. We do expect upmoves to set in today, but not above the 95.75 levels.