The so far oversold position of the USD is meanwhile corrected - it is still consolidating its lower levels in more or less quiet markets, without much volatility. Don’t be lulled by this more or less harmless overall sideways movement. A lot more sell stops have been built in meanwhile, waiting to be triggered. That goes quickly, usually, making markets like the EUR / USD and GBP / USD jump 150 basis points in minutes. Such a development we expect for today,
Accordingly, we put our projected trading bands for the dollar lower today, as described in the major pairs below. By the way, Fed chief Bernanke just announced an unchanged interest rate policy, between zero and 0.25%, but also said the quantitative easing, i.e. buying bonds up to print money, is soon coming to an end.There are no fundementally market-moving indicators scheduled for today.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The market is already on recovery move this European morning and is trading right now around 1.4770. We expect more of that upmove to come today, but would prefer not to buy above 1.4740.
GBP / USD
Despite the generally weak condition of the dollar, the pound acted even weaker in early European trading hours. We consider that movement, trading now to the day’s lows around 1.6190, to be over soon, giving way to a somewhat volatile recovery up to 1.6390.
USD / CHF
On the downmove against the Swiss franc this European morning, the market currently is trading around the day’s lows at 1.0220 and above a support line at 1.0215. We expect this support line to hold for a while today, but finally be broken, with the market envisaging the 1.0110 mark.
USD / JPY
Although the dollar is again weaker this European morning against the yen, currently trading at 90.60, it is interesting to see that it always develops strength in Asian trading. We see upmoves in this market in today’s hours, perhaps to levels around 91.50.
Accordingly, we put our projected trading bands for the dollar lower today, as described in the major pairs below. By the way, Fed chief Bernanke just announced an unchanged interest rate policy, between zero and 0.25%, but also said the quantitative easing, i.e. buying bonds up to print money, is soon coming to an end.There are no fundementally market-moving indicators scheduled for today.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The market is already on recovery move this European morning and is trading right now around 1.4770. We expect more of that upmove to come today, but would prefer not to buy above 1.4740.
GBP / USD
Despite the generally weak condition of the dollar, the pound acted even weaker in early European trading hours. We consider that movement, trading now to the day’s lows around 1.6190, to be over soon, giving way to a somewhat volatile recovery up to 1.6390.
USD / CHF
On the downmove against the Swiss franc this European morning, the market currently is trading around the day’s lows at 1.0220 and above a support line at 1.0215. We expect this support line to hold for a while today, but finally be broken, with the market envisaging the 1.0110 mark.
USD / JPY
Although the dollar is again weaker this European morning against the yen, currently trading at 90.60, it is interesting to see that it always develops strength in Asian trading. We see upmoves in this market in today’s hours, perhaps to levels around 91.50.
