Despite flat U.S. economic data and falling stock markets worldwide yesterday, the USD dropped during U.S. trading. Such inconsistencies suggest the Christmas holiday season is near and we can expect erratic currency movements in low volume markets. Important long-term support zones in the dollar market vs. the majors are still being tested; with the previous oversold trading status mostly ironed out now. Technical signals call for the Greenback's continued downtrend. It is waiting time for the dollar until it breaks out on the downside from the recent narrow trading ranges against the other major currencies.The final comfirmation this move may show in the medium term (next few weeks) as the dollar continues to show more weakness.
In today's trading, we don't see much change in the picture described above, with the dollar first gaining some ground against the majors, and later in the day moves down again. For the details, consult our daily market watch list below.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Currently trading at 1.4870, the pair is testing the lower end of its support zone in this European morning. We see not much more downside risk now, and expect an upmove towards the 1.4920 level.
GBP / USD
Cable suffered a bout of weakness in early European trading, plunging to its support at 1.6515, and is trading around 1.6528 right now. We expect a consolidation to set in soon, and later in today`s market some strength again, testing eventually the 1.6630 resistance zone.
USD / CHF
The dollar is on an upmove in early European trading against the Swiss franc. Currently priced at 1.0165, we do not expect much more upside potential, rather a sideways movement capped at 1.0190 on the upside and 1.0120 on the downside.
USD / JPY
The dollar acted weaker again in late Asian trading against the yen, although in low volatility, and is currently consolidating in the early European market, right now priced at 88.80. We expect some recovery to set in today, but not above the 89.20 level.
In today's trading, we don't see much change in the picture described above, with the dollar first gaining some ground against the majors, and later in the day moves down again. For the details, consult our daily market watch list below.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Currently trading at 1.4870, the pair is testing the lower end of its support zone in this European morning. We see not much more downside risk now, and expect an upmove towards the 1.4920 level.
GBP / USD
Cable suffered a bout of weakness in early European trading, plunging to its support at 1.6515, and is trading around 1.6528 right now. We expect a consolidation to set in soon, and later in today`s market some strength again, testing eventually the 1.6630 resistance zone.
USD / CHF
The dollar is on an upmove in early European trading against the Swiss franc. Currently priced at 1.0165, we do not expect much more upside potential, rather a sideways movement capped at 1.0190 on the upside and 1.0120 on the downside.
USD / JPY
The dollar acted weaker again in late Asian trading against the yen, although in low volatility, and is currently consolidating in the early European market, right now priced at 88.80. We expect some recovery to set in today, but not above the 89.20 level.
