Not only for chart analysts but fundamentally-oriented analysts as well. For chart buffs, the dollar's vigorous downmove yesterday finally confirmed the longer-term down signal which, though now completed, still speaks for more weakness. The fundamentalists see a bleak prognosis for the Greenback materializing. For this camp, the huge twin-deficit (fiscal and trade) of the U.S. is the main culprit, evoking worries about rising (and maybe spiralling) inflation. Like these two analytical groups, we too see a lower dollar towards year-end but we also expect wild swings as trading volume dwindles.

For today's trading, we wait for favorable entry points to short the dollar, which is in a small correction phase this European morning. Have a look at the pivot points for the majors listed below. Although we do not see yesterday's volatility repeated today (U.S. Thanksgiving holiday), there are still chances for intraday trading.

by George Clement

Intraday Market Outlook for Day Traders

EUR / USD
The pair is correcting this European morning, in reaction to yesterday's bold upmove, and is currently trading at 1.5080. We do not see much more downside risk in today's market and consider prices around 1.5060 or lower as a buying opportunity.

GBP / USD
Cable plunged in early European trading, right now trading at 1.6550, erasing all of yesterday's hard-won territory. We expect the uptrend to set in soon today, leading to levels of at least 1.6620.

USD / CHF
The dollar is recovering in the European morning market hours, currently trading around the 1.0000 handle, after being broken yesterday on the downside against the Swiss franc. We do not detect much more buying power for today, and rather expect a test of the lows at 0.9920 again.

USD / JPY
Against the yen, the dollar went into a tepid recovery move in low volatility, trading right now in the early European morning at 86.70. We see more downside risk emerging in today's market, leading to today's low around 86.30.