In Asian trading, rumors to replace the U.S. dollar as the sole currency to price oil and an unexpected rate hike in Australia sent the greenback lower with the Euro as the main beneficiary.

Later as the RBA rate increase was absorbed and the rumors denied, the dollar remained under pressure which we fell will be the trend for today's currency trading. Of course, firm equity markets will be an important factor for this trend but currently European markets are higher and U.S. equity futures point to a higher open.

by Steve Nigg

Intraday Market Outlook for Day Traders

EUR / USD
The EUR / USD rose to a high of 1.4748 on the rumors noted above and has settled at 1.4718, currently in calm trading. The euro is trending higher from its low last week at 1.4480 and has the potential to test resistance at 1.4845 in today's trading. We are looking to enter long EUR / USD at the 1.4700 minor support level.

GBP / USD
Cable is currently trading at 1.5960 after reaching 1.6045 in early European trading. Momentum has turned upwards on the daily charts and a retest of today's current high at 1.6045 is foreseen.

USD / CHF
The dollar is once again trending lower against the Swiss franc and is currently at 1.0260, up slightly from its daily low at 1.0243. There is potential for the USD /C HF rate to reach the important 1.0200 level in today's trading but fear of SNB intervention is keeping many traders sidelined.

USD / JPY
Volume in the USD / JPY has been largely dictated by trading in USD / JPY and today is no different. Currently at 89.02, the USD / JPY has been stuck in a narrow range between 88.60 and 90.30 for nearly two weeks. Prospects are good for a retest of support at 88.20/88.30 today.