Despite worried stock markets about the banking industry, CIT financial trouble in the U.S. and UBS disappointment in Switzerland, the dollar gained only slowly yesterday against its major partners. As a matter of fact, the whole chart patterns still point towards a sideways market, with resistance on the upside for the USD now about being met. We see that resistance not being broken for the time being, on the contrary, since there is rather a chance that from there renewed weakness for the USD will set in.

For today`s trading, we expect the slight bid tone of the USD to vanish, but only a further sideways market developing. See the detailed description in the major pairs' list below. The only important market-moving data scheduled for today will be U.S. Factory Orders at 16:00 CET.

by George Clement

Intraday Market Outlook for Day Traders

EUR / USD
Currently trading at 1.4660, the pair is trying to break the 1.4650 support level. In contrast, we do not see much more downside risk for today, and rather anticipate a rise up to the 1.4770 level.

GBP / USD
The pound is right now at 1.6305 this European morning, having lost considerable ground yesterday and in Asian trading. Even more oversold than the euro, we see the present levels holding in today`s trading, and expect recovery moves up to levels around 1.6400.

USD / CHF
The dollar is trading at 1.0315 against the Swiss franc which is also this European morning`s high so far. The upmove started in late Asian trading but we see setbacks coming in today`s trading, leading to levels around 1.0260.

USD / JPY
In low volatility, the USD lost some ground in late Asian and early European trading against the yen, trading right now around the 90.06 level. We see some weakness developing today but only to levels around 89.80.