Actually, it is a tug of war between the fundamental and the technical analysts. Fundamentally-oriented people believe in a weaker dollar towards year end (fear of future inflation, seasonal year-end weakness) while technical analysts throw in the arguments of strong support lines and an oversold situation of the USD. We agree with a lower dollar ending the year, but the directional move is not setting in yet. Before that materializes, some upward correction is more likely, based on the technical opinion now.
Accordingly, and for today's trading, in expectation of recovery moves of the USD, we are setting our marks for action in the detailed list of the majors below. There are no market-moving data scheduled for today.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
After an upmove in Asian and early European trading, the pair is currently trading at 1.4995 and approaching the critical resistance zone at 1.5050. We do not expect that zone to be broken today and rather see down movements in the making, approximately from current levels, to the 1.4940 mark.
GBP / USD
The pound is trading currently at 1.6812 in an upmove during early European trading, obviously trying to test the important 1.6900 handle level. We think it will only be tested, if at all, because of the current strong uptrend. Downmoves are in the cards for today's trading, to levels around 1.6720.
USD / CHF
The dollar, in lower volatility compared to other majors, lost ground this European morning against the Swiss franc and is now priced at 1.0070. We do not see much more downside risk, rather recovery moves coming today, leading to the 1.0120 mark.
USD / JPY
In contrast to other pairs, the dollar is moving in a sideways trend against the yen, characterized by low volatility, between 90.20 and 89.70 in late Asian and early European trading. Currently priced at 89.90, we see that sideways trend continuing in today's trading.
Accordingly, and for today's trading, in expectation of recovery moves of the USD, we are setting our marks for action in the detailed list of the majors below. There are no market-moving data scheduled for today.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
After an upmove in Asian and early European trading, the pair is currently trading at 1.4995 and approaching the critical resistance zone at 1.5050. We do not expect that zone to be broken today and rather see down movements in the making, approximately from current levels, to the 1.4940 mark.
GBP / USD
The pound is trading currently at 1.6812 in an upmove during early European trading, obviously trying to test the important 1.6900 handle level. We think it will only be tested, if at all, because of the current strong uptrend. Downmoves are in the cards for today's trading, to levels around 1.6720.
USD / CHF
The dollar, in lower volatility compared to other majors, lost ground this European morning against the Swiss franc and is now priced at 1.0070. We do not see much more downside risk, rather recovery moves coming today, leading to the 1.0120 mark.
USD / JPY
In contrast to other pairs, the dollar is moving in a sideways trend against the yen, characterized by low volatility, between 90.20 and 89.70 in late Asian and early European trading. Currently priced at 89.90, we see that sideways trend continuing in today's trading.
