It’s nothing new: This summer brought currencies closer to each other and near zero interest rates are part of that similarity. Even the different major economies have much in common for now. That will change of course in the future, but for now the trader’s choice relies on market and technical aspects. Volatility may be shrinking, but the broad sideways trend channels are still there, offering trading opportunities.
Such an opportunity opens up for today, where the oversold status of the dollar calls for an upward correction, especially against the euro, but also against the pound. See the details described below. Note the U.S. leading indicators for July, scheduled at 16:00 CET. An improvement is expected.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The market traded sideways in late Asian and early European trading, with the euro caught between 1.4260 and 1.4210, and currently trading at 1.4235 against the dollar. We see some more volatility coming up today, with a downward tendency towards the 1.4150 level.
GBP / USD
The pound is on another attack ride against the 1.6600 resistance line, although in low volatility, and is currently trading at 1.6540. We see the 1.6600 level being untouched today and expect downmoves to the 1.6480 to 1.6450 levels.
USD / CHF
The dollar recovered somewhat from its late yesterday’s lows around 1.0620 and is now consolidating in a sideways trend at currently 1.0660. We expect more of that recovery to materialize today, leading to levels above 1.0700.
USD / JPY
The recovery of the dollar against the yen came to a halt in early European trading, with the market currently at 94.35. We do not see the 94.60 level being broken on the upside, and expect later renewed downward moves towards 94.00.
Such an opportunity opens up for today, where the oversold status of the dollar calls for an upward correction, especially against the euro, but also against the pound. See the details described below. Note the U.S. leading indicators for July, scheduled at 16:00 CET. An improvement is expected.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The market traded sideways in late Asian and early European trading, with the euro caught between 1.4260 and 1.4210, and currently trading at 1.4235 against the dollar. We see some more volatility coming up today, with a downward tendency towards the 1.4150 level.
GBP / USD
The pound is on another attack ride against the 1.6600 resistance line, although in low volatility, and is currently trading at 1.6540. We see the 1.6600 level being untouched today and expect downmoves to the 1.6480 to 1.6450 levels.
USD / CHF
The dollar recovered somewhat from its late yesterday’s lows around 1.0620 and is now consolidating in a sideways trend at currently 1.0660. We expect more of that recovery to materialize today, leading to levels above 1.0700.
USD / JPY
The recovery of the dollar against the yen came to a halt in early European trading, with the market currently at 94.35. We do not see the 94.60 level being broken on the upside, and expect later renewed downward moves towards 94.00.
