It seems like a studied choreography: Both sides of the Atlantic showing economic recovery signs at the same time, a very rare situation. Now the U.S. has published more positive data as well, after Germany showed signs of recovery. No wonder then that the major pairs are showing an almost standstill market, with the USD still hovering above its support zones. We expect these zones to hold in the near future, giving way now and then to recovery moves, albeit limited ones.
There is still a selling tone in the USD this European morning, which we think will vanish slowly today due to the heavily oversold situation. Recovery moves then may set in, although in unchanged low volatility - see the details below. There are no real market-moving data scheduled for today, except perhaps a dramatic change in the U.S. existing home sales for July at 16:00 CET. Expected is another slight improvement in the numbers.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Stronger in the European morning, the euro is attempting another attack on the important 1.4350 resistance line against the dollar. With the market currently trading around 1.4305 and in overbought condition, we do not expect this resistance line to fall today. More likely are setback movements, down to prices around 1.4270.
GBP / USD
From lows around 1.6430 in late Asian trading, the pound recovered further against the dollar in early European trading, and right now is at 1.6520. We see a maximum upside potential of only 1.6550 for today, and expect downmoves from there to 1.6460.
USD / CHF
The dollar’s selling tone against the Swiss franc continued in this European morning. We see a slight turnaround in this trend happening today and, with the market currently trading at 1.0590, we project prices up to 1.0690.
USD / JPY
On a slight recovery move this European morning, the dollar is currently trading at 93.80 against the yen. We see this recovery move soon stopped at around 93.90 today, giving room for downmoves as low as 93.20.
There is still a selling tone in the USD this European morning, which we think will vanish slowly today due to the heavily oversold situation. Recovery moves then may set in, although in unchanged low volatility - see the details below. There are no real market-moving data scheduled for today, except perhaps a dramatic change in the U.S. existing home sales for July at 16:00 CET. Expected is another slight improvement in the numbers.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Stronger in the European morning, the euro is attempting another attack on the important 1.4350 resistance line against the dollar. With the market currently trading around 1.4305 and in overbought condition, we do not expect this resistance line to fall today. More likely are setback movements, down to prices around 1.4270.
GBP / USD
From lows around 1.6430 in late Asian trading, the pound recovered further against the dollar in early European trading, and right now is at 1.6520. We see a maximum upside potential of only 1.6550 for today, and expect downmoves from there to 1.6460.
USD / CHF
The dollar’s selling tone against the Swiss franc continued in this European morning. We see a slight turnaround in this trend happening today and, with the market currently trading at 1.0590, we project prices up to 1.0690.
USD / JPY
On a slight recovery move this European morning, the dollar is currently trading at 93.80 against the yen. We see this recovery move soon stopped at around 93.90 today, giving room for downmoves as low as 93.20.
