The U.S. dollar is lower today as investors embrace higher risk investments. The currency markets are still being dictated by the level of equity prices and any rally in stock markets translates immediately into lower dollar prices as investors sell their safe-haven dollar positions in favor of positions in higher risk and yielding currencies. We do not see any end to this trend and a continued rally in share markets will take the U.S. dollar lower.
Today, the economic reports to watch are the PPI and Housing Starts out of the U.S. at 14:30 CET.
by Steve Nigg
Intraday Market Outlook for Day Traders
EUR / USD
The EUR / USD continues its ascent to the 1.5000 level which has become an important resistance level. We are treating long EUR / USD positions with caution because, at 1.4971 currently, we are not far from reported profit-taking sell orders located at 1.5025 to 1.5035. On the upside, we have heard of stop-loss orders at 1.5010-1.5015 that could take prices higher. No recommendation.
GBP / USD
Currently trading at 1.6403, cable has shown remarkable resilience since most analysts have been recently predicting prices to fall to 1.5700 and even 1.5400 as recently as last Friday. Support for Sterling continues to come from higher share prices worldwide as well as rumors that England will soon end its QE program. We see 1.6470 as important resistance to any further gains for this currency pair. Support is seen at 1.6355.
USD / CHF
At 1.0100, the USD is very close to parity against the CHF. Traders are currently wary of shorting the USD / CHF because of the fear of SNB intervention in the market. We think the SNB will not intervene in support of the dollar until signs of CHF weakness are first seen in the market. No recommendation.
USD / JPY
The yen continues to trade contrary to movements in the other currency majors and is currently at 90.32. Yesterday, analysts called for gains in the USD / JPY to highs of 92.00 but already today many of these same analysts are beginning to doubt their forecasts. Any daily gains will depend on the 90.00-90.10 support level holding into the U.S. market open later today.
Today, the economic reports to watch are the PPI and Housing Starts out of the U.S. at 14:30 CET.
by Steve Nigg
Intraday Market Outlook for Day Traders
EUR / USD
The EUR / USD continues its ascent to the 1.5000 level which has become an important resistance level. We are treating long EUR / USD positions with caution because, at 1.4971 currently, we are not far from reported profit-taking sell orders located at 1.5025 to 1.5035. On the upside, we have heard of stop-loss orders at 1.5010-1.5015 that could take prices higher. No recommendation.
GBP / USD
Currently trading at 1.6403, cable has shown remarkable resilience since most analysts have been recently predicting prices to fall to 1.5700 and even 1.5400 as recently as last Friday. Support for Sterling continues to come from higher share prices worldwide as well as rumors that England will soon end its QE program. We see 1.6470 as important resistance to any further gains for this currency pair. Support is seen at 1.6355.
USD / CHF
At 1.0100, the USD is very close to parity against the CHF. Traders are currently wary of shorting the USD / CHF because of the fear of SNB intervention in the market. We think the SNB will not intervene in support of the dollar until signs of CHF weakness are first seen in the market. No recommendation.
USD / JPY
The yen continues to trade contrary to movements in the other currency majors and is currently at 90.32. Yesterday, analysts called for gains in the USD / JPY to highs of 92.00 but already today many of these same analysts are beginning to doubt their forecasts. Any daily gains will depend on the 90.00-90.10 support level holding into the U.S. market open later today.
