There are many market expectations now that the USD will turn higher versus its major trading partners. After the German GDP exceeding growth expectations, there are now the inflation fears in the Eurozone. For Forex markets, this means a balanced market, remaining on a sideways trend.

So we do not find any reason to project a new trend for the USD and stick to our technical observations. For now, the USD is overbought again versus its majors, leading us to put the trading bands for the currency today a little lower, as described below.

by George Clement

Intraday Market Outlook for Day Traders

EUR / USD
This market traded further down in early European morning trading, with the euro now priced at 1.4125 against the dollar. We do not expect much more downside risk today, rather a recovery from present levels to around 1.4240.

GBP / USD
The pound reached important support levels against the dollar this European morning and is currently trading at 1.6320. We do not see the 1.6300 support level being broken. On the contrary, it will serve as a springboard for recovery movements up to 1.6450.

USD / CHF
The dollar maintained its strength against the Swiss franc and is now trading at 1.0795 this European morning. From now on, we expect down moves, leading to levels around 1.0740.

USD / JPY
Continuing to hover at low support levels against the yen in the early European hours, the USD currently is trading at 94.55. We regard the present levels as a strong support, leading to recovery moves up to 94.90.