Despite better than expected U.S. economic data at the end of last week, the dollar this time turned stronger against its major partners. So far it has been the market’s expection to take economic revival in the U.S. as bearish for the Greenback. Not so this time. It seems the USD has found a rock solid bottom, although giving way only to not more than short-term recoveries, only to fall back again to these support levels. We expect more recovery for the currency to come this week.

Granted, we are amidst in the summer holidays where it is especially hard to see future devlopments due to the lower volume. But as far as today’s trading is concerned, we see some further up movements in the USD against its majors, as described in the day’s list below.

by George Clement

Intraday Market Outlook for Day Traders

EUR / USD
The euro started the week in a consolidative mood from its lower levels against the dollar, currently trading at 1.4190. We expect even lower levels for today, eventually reaching the 1.4090 level.

GBP / USD
The pound lost further territory against the dollar in early European trading, now hovering above an intraday support at 1.6650. We do not see much more downside risk today, perhaps to the levels around 1.6600.

USD / CHF
The dollar, in quiet trading against the Swiss franc this European morning, is consolidating its higher levels and is right now priced at 1.0820. We expect a test of the 1.0920 resistance level today in the later trading hours.

USD / JPY
The European early trading hours started quietly for the USD / JPY, with the dollar consolidating its gains, and is currently trading at 97.30. We see a selling tone in this market to come today, leading to levels around 96.70.