Chart buffs certainly have noticed: there is a confirmation signal in the medium term for a rally in the EUR / USD. Especially visible in the 8-hour chart we see a confirmation "flag," which means lower highs and higher lows, spreading well over the last week (the lower end of it is being tested right now). What we have to wait for is another upmove to the upper end of the flag at 1.4980. It is not inevitable that this upmove will break the flag's upper limit, but if it does, it means the EUR / USD will rally over the next weeks, and possibly go to the 1.5500 / 1.5750 area eventually. But the completion of this signal has yet to develop. We simply have to wait.
For today's trading, we see another but moderate downmove in the USD, as described in detail for the major pairs below. There is not much fundamental data scheduled for release today - but note the U.S. leading indicators of October, usually not a very big market mover, especially when in line with expectations. The U.S. leading indicators are expected to show an increase by at least 0.4%.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Currently testing a support level around 1.4850, the pair lost ground in this European morning and is currently trading at 1.4870. We see a moderate upmove for today in the making, testing areas around 1.4940.
GBP / USD
Short-term oversold against the dollar, the pound is currently trading just above an intraday support level at 1.6690. The downmove which began in late Asian trading continues for now in early European market hours. We expect it to lose momentum soon, giving room to reverse and test the 1.6750 resistance level.
USD / CHF
In contrast to other majors, the dollar has gained territory against the Swiss franc in early European trading and is currently priced at 1.0180. We doubt that the 1.0200 level will be broken today, and expect moderate weakness to set in today, testing support levels around 1.0120.
USD / JPY
The dollar continues to trade within its narrow trading band against the yen, right now located at the lower end of the range, at 88.95. Moderate upward momentum could set in now, towards the upper end of the trading range at 89.50.
For today's trading, we see another but moderate downmove in the USD, as described in detail for the major pairs below. There is not much fundamental data scheduled for release today - but note the U.S. leading indicators of October, usually not a very big market mover, especially when in line with expectations. The U.S. leading indicators are expected to show an increase by at least 0.4%.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Currently testing a support level around 1.4850, the pair lost ground in this European morning and is currently trading at 1.4870. We see a moderate upmove for today in the making, testing areas around 1.4940.
GBP / USD
Short-term oversold against the dollar, the pound is currently trading just above an intraday support level at 1.6690. The downmove which began in late Asian trading continues for now in early European market hours. We expect it to lose momentum soon, giving room to reverse and test the 1.6750 resistance level.
USD / CHF
In contrast to other majors, the dollar has gained territory against the Swiss franc in early European trading and is currently priced at 1.0180. We doubt that the 1.0200 level will be broken today, and expect moderate weakness to set in today, testing support levels around 1.0120.
USD / JPY
The dollar continues to trade within its narrow trading band against the yen, right now located at the lower end of the range, at 88.95. Moderate upward momentum could set in now, towards the upper end of the trading range at 89.50.
