The Dollar is struggling hard to fight its support zones against the major pairs, especially with the EUR/USD market still flexes its muscles. After the Fed presented its FOMC news 20:CET yesterday, it became clear that the institution considers its risk limiting job being almost done, with the main part now remaining with the banks. They have to pass the interest rate cut to their clients - but that is exactly what they're not practising, siphoning huge profits out of state help. A new regulation therefore is being discussed, but far from sure being installed soon, if at all. (The same discussion is actual now in the EU). Altogether, with a recovering economy, this puts a lid on the Dollar, although we expect it to hold its old support lines in the coming weeks.
For today's trading, we expect further recovery attempts in the Dollar, as explained in the major market list. Note the ECB`s publication of their monetary policy, at 13:45 CET and then the discussion of the protocol 14:30 CET.
Intraday Market Outlook for Day Traders
EUR/USD
The market is in further recovery attempt this Europen morning, currently trading at 1.4290. Although we expect this recovery attempt to fade soon in today`s trading, prices up to 1.4330 are possible first, from where a downturn will set in, leading to a test of the support 1.4260.
GBP/USD
Cable continues its recovery in early European morning, currently priced at 1.6350, soon to test resistance around 1.6390. We expect this level to hold in today`s trading, and later in the day we see downmoves to the 1.6220 level again.
USD/CHF
Near the long term support around 1.0550 against the Swiss Franc, the Dollar is currently trading at 1.0590. Because of the near support and the oversold position of the market, we see recovery moves to set in today, but not exceeding the 1.0630 level.
USD/JPY
The Dollar is trading around the well known 92.50 level against the Yen, a support zone. We see another downmove to come in today`s later trading, testing the 92.00 mark.
