As fundamental data point to a joint recovery of the global economy - let alone how the recovery will develop - Forex is focusing on market and technical aspects again. This is well illustrated by the USD’s behavior, refusing to break its support lines, especially in oversold condition. There is simply more time that needs to elapse before a true quantitative analysis of which economy is developing faster than the other can be made, in other words, where the cycle stands for each country. Only then we can begin again trading the fundamental data.
For today’s trading, we still expect some recovery moves in the dollar against its majors, finishing the oversold correction. The most recalcitrant is the EUR / USD, having now lost a lot of its previous volatility. See the list below for details. Note today’s publication of U.S. durable goods orders for July at 14:30 CET, and U.S. new home sales for July at 16:00 CET.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Again on a recovery move against the dollar, the euro fell back a little this European morning and is currently trading around 1.4310. We see more of this downward correction to come today, to lows around 1.4280. Before that, the market will again test the 1.4330 mark.
GBP / USD
The pound continues to tend weakly against the dollar in the early European hours and is currently trading at 1.6305, right back on the old support lines again. We do not see much recovery potential in today’s trading, although the market is already in oversold condition. A test on the upside of the 1.6370 mark seems likely, though.
USD / CHF
Some slight recovery of the dollar against the Swiss franc has set in this European morning, bringing the market to now 1.0610. The resistance level at 1.0670 is likely to be tested today.
USD / JPY
The dollar is continuing its consolidation move between 94.40 and 93.90 against the yen in early European trading and is priced right now at 94.05. We see this trading band continuing in today’s hours, repeatedly testing both the up- and the downside.
For today’s trading, we still expect some recovery moves in the dollar against its majors, finishing the oversold correction. The most recalcitrant is the EUR / USD, having now lost a lot of its previous volatility. See the list below for details. Note today’s publication of U.S. durable goods orders for July at 14:30 CET, and U.S. new home sales for July at 16:00 CET.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Again on a recovery move against the dollar, the euro fell back a little this European morning and is currently trading around 1.4310. We see more of this downward correction to come today, to lows around 1.4280. Before that, the market will again test the 1.4330 mark.
GBP / USD
The pound continues to tend weakly against the dollar in the early European hours and is currently trading at 1.6305, right back on the old support lines again. We do not see much recovery potential in today’s trading, although the market is already in oversold condition. A test on the upside of the 1.6370 mark seems likely, though.
USD / CHF
Some slight recovery of the dollar against the Swiss franc has set in this European morning, bringing the market to now 1.0610. The resistance level at 1.0670 is likely to be tested today.
USD / JPY
The dollar is continuing its consolidation move between 94.40 and 93.90 against the yen in early European trading and is priced right now at 94.05. We see this trading band continuing in today’s hours, repeatedly testing both the up- and the downside.
