Whereas the U.S. dollar continues its decline against most majors and all commodity currencies, it has managed to gain against the Japanese yen in recent days to over 91.00 yen per dollar. According to the leading news providers, such as Bloomberg and Dow Jones News, the yen has already succumbed to profit-taking while the euro, Sterling and Swiss franc are poised to fall against the dollar due to the fact that they are currently in overbought territory. We feel that the dollar's decline this week has been overdone and may correct today, Friday, as, being the last day of the week, this is the day most corrections occur. We must say that this is only a feeling as we have no technical or fundamental data to support this view.

Important economic reports later today are: U.S. TIC report at 15:00 CET, Industrial Production at 15:15 CET and finally the U. of Michigan Confidence report at 16:00 CET.

by Steve Nigg

Intraday Market Outlook for Day Traders

EUR / USD
The EUR / USD is knocking on the door of the important 1.5000 level but has not broken above this level as yet. Currently trading at 1.4916, we see first support at 1.4840 and more substantial support at 1.4650. An important technical factor to note is the double top at 1.4967 seen on the daily charts. If this top holds in today's trading, then we see prices falling to first support at 1.4840 and possibly further.

USD / CHF
Currently trading at 1.0181, the USD / CHF is approaching important resistance at 1.0196. If the dollar can break above this level in today's trading, prices can easily reach 1.0275 before the close of trading for the weekend.