The important resistance zone in the euro (1.5050/1.5100) against the Greenback has been tested several times now, with the latest attempt yesterday at 1.5016 unsuccessful.
So far, the decisive move for the dollar, to fall through its support zones, is still outstanding, with today's early European market just continuing the consolidation phase Asian trading started. The decisive move will come, and we expect it to be on the downside for the USD, resulting in a weak trend until year-end. But what we need for such a movement is 1) a clear break of 1.5050, 2) a sustained consolidation afterwards, 3) another upmove from there to new highs. We simply have to wait for that, before safely predicting 1.5500 for the euro and 0.89 cents for the Swiss franc.
We expect some higher volatility for today's trading, with the support zones for the USD under attack again, given the amount of short-term market-moving data and speeches today: U.S. producer prices for October at 14:30 CET, U.S. industrial production and capacity utilization for October at 15:15 CET; several members of the ECB and Fed are speaking at 14:30, 15:15 and 17:00 CET. That will give enough to ponder, resulting in wider swings in the USD's market, most probably with a selling tone. We set our trading points in the majors' list below.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair lost some ground this European morning, after consolidating from its higher levels in Asian market hours. Currently trading around 1.4910, we do not expect much more downside risk; another attack during the day of yesterday's high at the 1.5016 level has a chance today.
GBP / USD
The pound, continuing its considerable upmove in early European market hours, is currently trading at 1.6825, near highs not reached since August. But before reaching these highs, the handle level 1.7000 must be broken on the upside. We see a possible approach to 1.6900 in today's trading, and then some downward corrections.
USD / CHF
Currently trading at 1.0130 against the Swiss franc, the dollar is on an upmove in the early European market hours. We see that upmove limited at 1.0145 for today, and later renewed weakness.
USD / JPY
The dollar is about to form another, lower intraday base against the yen in low volatility. Currently trading at 89.08, we see the current slight upmove in early European trading limited to 89.20, while later the support of the narrow trading band at 88.70 may be tested again today.
So far, the decisive move for the dollar, to fall through its support zones, is still outstanding, with today's early European market just continuing the consolidation phase Asian trading started. The decisive move will come, and we expect it to be on the downside for the USD, resulting in a weak trend until year-end. But what we need for such a movement is 1) a clear break of 1.5050, 2) a sustained consolidation afterwards, 3) another upmove from there to new highs. We simply have to wait for that, before safely predicting 1.5500 for the euro and 0.89 cents for the Swiss franc.
We expect some higher volatility for today's trading, with the support zones for the USD under attack again, given the amount of short-term market-moving data and speeches today: U.S. producer prices for October at 14:30 CET, U.S. industrial production and capacity utilization for October at 15:15 CET; several members of the ECB and Fed are speaking at 14:30, 15:15 and 17:00 CET. That will give enough to ponder, resulting in wider swings in the USD's market, most probably with a selling tone. We set our trading points in the majors' list below.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair lost some ground this European morning, after consolidating from its higher levels in Asian market hours. Currently trading around 1.4910, we do not expect much more downside risk; another attack during the day of yesterday's high at the 1.5016 level has a chance today.
GBP / USD
The pound, continuing its considerable upmove in early European market hours, is currently trading at 1.6825, near highs not reached since August. But before reaching these highs, the handle level 1.7000 must be broken on the upside. We see a possible approach to 1.6900 in today's trading, and then some downward corrections.
USD / CHF
Currently trading at 1.0130 against the Swiss franc, the dollar is on an upmove in the early European market hours. We see that upmove limited at 1.0145 for today, and later renewed weakness.
USD / JPY
The dollar is about to form another, lower intraday base against the yen in low volatility. Currently trading at 89.08, we see the current slight upmove in early European trading limited to 89.20, while later the support of the narrow trading band at 88.70 may be tested again today.
