As soon as the short-term overbought situation of the Greenback was cleared, it suffered renewed weakness, with the majors rising to resistance levels again. Generally, the market sees the reason for the latest weakness in the dollar due to worse than expected U.S. economic data last Friday. True, technically it looks like the dollar's return to its longer-term downtrend has begun again, but there still is no fundamental economic data to really explain the dollar's weakness. Technically, last week, the dollar enjoyed a short-term rally of about 200 pips against the majors but this rally lasted only two days, not really enough for a true correction. These movements point to a short-term sideways market within a wider downtrend for the dollar.
We do not expect either the upper or lower bands of the dollar's trading range to be broken soon, but expect repeated testing of support and resistance.Most probably, the dollar's support levels against the majors will be broken at some time in the future but only when both fundamental and technical reasons dictate such a move. Listed below are the details in the major pairs' list. Follow today's data release of U.S. retail sales in October at 14:30 CET, and the speech of the Fed's head Mr. Bernanke, addressing NYC's Economic Club at 18:15 CET.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The euro is still in an uptrend against the dollar this Europoean morning, currently trading at 1.4970. The resistance level at 1.5020 might be tested today, but not broken. Afterwards, we see a downward correction back to the 1.4920 mark again.
GBP / USD
The dollar weakness is less pronounced in cable, which is currently trading at 1.6680 in early European hours. Some higher prices are in the cards today, but not above 1.6750.
USD / CHF
The dollar suffered renewed weakness in early European trading, losing ground to the right now reached 1.0080 against the Swiss franc, near the lows of the day so far until now. We expect a consolidation around the prices phase now, followed later in the day by upward corrections to the level around 1.0120.
USD / JPY
Against the yen, the dollar started the week in very low volatility in Asian trading hours. This has not changed in this European morning, with the market right now at 89.50 at the lower end of the narrow band between 89.40 and 89.70. We see this sideways trading band to remain intact for today.
We do not expect either the upper or lower bands of the dollar's trading range to be broken soon, but expect repeated testing of support and resistance.Most probably, the dollar's support levels against the majors will be broken at some time in the future but only when both fundamental and technical reasons dictate such a move. Listed below are the details in the major pairs' list. Follow today's data release of U.S. retail sales in October at 14:30 CET, and the speech of the Fed's head Mr. Bernanke, addressing NYC's Economic Club at 18:15 CET.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The euro is still in an uptrend against the dollar this Europoean morning, currently trading at 1.4970. The resistance level at 1.5020 might be tested today, but not broken. Afterwards, we see a downward correction back to the 1.4920 mark again.
GBP / USD
The dollar weakness is less pronounced in cable, which is currently trading at 1.6680 in early European hours. Some higher prices are in the cards today, but not above 1.6750.
USD / CHF
The dollar suffered renewed weakness in early European trading, losing ground to the right now reached 1.0080 against the Swiss franc, near the lows of the day so far until now. We expect a consolidation around the prices phase now, followed later in the day by upward corrections to the level around 1.0120.
USD / JPY
Against the yen, the dollar started the week in very low volatility in Asian trading hours. This has not changed in this European morning, with the market right now at 89.50 at the lower end of the narrow band between 89.40 and 89.70. We see this sideways trading band to remain intact for today.
