Despite calls for the dollar’s demise, the Greenback is experiencing a small rally today in early European trading. The catalyst for this move appears to be the Japanese Finance Minister, Hirohisa Fujii’s statement denying he supported a stronger yen and that “intervention in the currency markets to support the dollar against the yen cannot be ruled out.”

The dollar has also recovered from oversold conditions against the Swiss franc, euro and British pound. Cable is also being pressured by the deteriorating economic outlook in England.

Intraday Market Outlook for Day Traders

EUR / USD
The EUR / USD experienced a setback, but has recovered somewhat from its low of 1.4560 in early European trading. Currently trading at 1.4575, we expect further downmoves today to 1.4520.

GBP / USD
The pound is just consolidating its lower levels against the dollar, now trading at 1.5850. We see continued downside potential for today, to around 1.5800.

USD / CHF
The USD / CHF has once again regained the1.0300 handle and is trading currently at 1.0364. We see prices testing the important 1.0375 resistance level today and a break of this level could take prices to 1.0425.

USD / JPY
The dollar is trading presently at 89.84 after a brief rally which took it above the important 90.00 resistance level. The trend is pointing to another test of the 90.00 handle but we do not see prices much higher than 90.50 in today’s trading.