The phenomenon of an inverse correlation with the stock markets confirmed itself again: The stock markets, full of optimism recently and accordingly overbought, have now corrected, while the dollar, overshadowed by inflationary pessimism and accordingly heavily oversold against its trading partners, recovered yesterday, gaining against all the majors and commodity currencies.This European morning the recovery seems to go on, and we see some more up correction trading opportunities.

We therefore put our strategy for today as described below in detail in the major pairs` list. Note today`s publication of the U.S. consumer confidence index for October, at 15:00 CET. Expected is some increase.

by George Clement

Intraday Market Outlook for Day Traders

EUR / USD
On a recovery move this European morning, the pair is currently trading at 1.4885, back a little from the highs around 1.4930. We see the downmove reinforcing itself in today`s trading and consider the current or somewhat higher levels as selling opportunities.

GBP / USD
Currently trading at 1.6410, the pound is trading higher against the dollar this European morning. Some strength may develop in today`s trading, but not above resistance around 1.6470.

USD / CHF
After reaching highs around 1.0197, the dollar is currently trading at 1.0175. Prices around 1.0160 could be seen today and would represent a buy level in today`s trading.

USD / JPY
Yesterday`s highs around 92.30 have been corrected downwards in Asian and early European trading today, to its current price of 91.90. The levels around 91.50 represent a support line, from where we expect upward moves.