The European currency is presently one of the strongest in the world, prompting Eurozone industries to protest the euro's strength. Despite this protest in the Eurozone, the euro is still on an upward trend and with good reason. There are more and more countries planning to use the euro with the dollar as their reserve currency. Also, there are hints in the market that some European countries will soon end the QE and raise interest rates. Perhaps even before the U.S., so the money flow is still in favor of the euro and we see this trend continuing at least until year end.
For today's trading, though, we see the dollar correcting upwards against the majors as explained below in detail by currency pair. Market-moving data scheduled for today are Eurozone Industrial Production at 11:00 CET and, in the U.S., MBA Mortgage applications at 13:00 CET and the important Jobless Claims report at 14:30 CET.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Shying away from the important 1.5050 level, the pair is currently on a downmove as part of a correction of its previous strength and is priced right now at 1.4945 in early European trading. We see some more of this weakness to perhaps as low as 1.4850. Afterwards, an upward move is in the cards, leading back to the 1.5000 level.
GBP / USD
Cable has lost considerable territory against the dollar, trading currently at 1.6560 after touching support at 1.6520. We expect some recovery today, since 1.6520 is one the stronger support zones. Upmoves would not exceed 1.6610 though.
USD / CHF
The dollar recovered especially in early European trading, priced right now at 1.0110 against the Swiss franc. This is a valid resistance level for today, which we do not see being broken. We expect renewed downmoves towards the 1.0040 level.
USD / JPY
The dollar gained as well against the yen in Asian and early European trading, unlike its usual countermove compared to other majors, and is currently trading at 89.76. We expect some more strength today, testing the 90.00 resistance, and afterwards returning to a tight trading range between 90.00 and 89.50.
For today's trading, though, we see the dollar correcting upwards against the majors as explained below in detail by currency pair. Market-moving data scheduled for today are Eurozone Industrial Production at 11:00 CET and, in the U.S., MBA Mortgage applications at 13:00 CET and the important Jobless Claims report at 14:30 CET.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Shying away from the important 1.5050 level, the pair is currently on a downmove as part of a correction of its previous strength and is priced right now at 1.4945 in early European trading. We see some more of this weakness to perhaps as low as 1.4850. Afterwards, an upward move is in the cards, leading back to the 1.5000 level.
GBP / USD
Cable has lost considerable territory against the dollar, trading currently at 1.6560 after touching support at 1.6520. We expect some recovery today, since 1.6520 is one the stronger support zones. Upmoves would not exceed 1.6610 though.
USD / CHF
The dollar recovered especially in early European trading, priced right now at 1.0110 against the Swiss franc. This is a valid resistance level for today, which we do not see being broken. We expect renewed downmoves towards the 1.0040 level.
USD / JPY
The dollar gained as well against the yen in Asian and early European trading, unlike its usual countermove compared to other majors, and is currently trading at 89.76. We expect some more strength today, testing the 90.00 resistance, and afterwards returning to a tight trading range between 90.00 and 89.50.
