Currency movements recently are concentrating on short-term interest rate expectations and the more than ambiguous idea of "risk appetite." Currency markets were surprised when Australia decided to leave interest rates unchanged after expectations for an increase which sent the AUD lower against all currencies. This move also caused selling in the other commodity currencies (CAD and NZD) which were already experiencing weakness against their counterparts.
Despite the dollar's gains against the commodity currencies, we expect it to continue the correction of its massively overbought position against the majors. Note the U.S. ISM services index for January at 16:00 CET, where a further improvement is expected.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Reinforcing its upmove during early European hours, the pair reached an intraday high of 1.4020 and is currently trading at 1.4010. After some pausing, we see the uptrend picking up today, but not before having tested the 1.3980 support. Prices could then reach 1.4060.
GBP / USD
The pound continued its recovery move against the dollar this European morning, trading right now at 1.6025 after highs around 1.6070. We expect the uptrend to continue today, breaking the 1.6100 resistance level.
USD / CHF
Against the Swiss franc, the dollar lost 80 pips in the European morning hours and is priced right now at 1.0510. We expect an upward correction of the quick move,
with the market touching 1.0540 and a renewed weakness leading to the 1.0460 mark.
USD / JPY
In a correction of its upmove against the yen in Asian trading, the Dollar is currently trading at 90.40 and, in our view, on the way back to the 90.90 resistance line. This we expect to be broken eventually, but not before a longer consolidation phase.
Despite the dollar's gains against the commodity currencies, we expect it to continue the correction of its massively overbought position against the majors. Note the U.S. ISM services index for January at 16:00 CET, where a further improvement is expected.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Reinforcing its upmove during early European hours, the pair reached an intraday high of 1.4020 and is currently trading at 1.4010. After some pausing, we see the uptrend picking up today, but not before having tested the 1.3980 support. Prices could then reach 1.4060.
GBP / USD
The pound continued its recovery move against the dollar this European morning, trading right now at 1.6025 after highs around 1.6070. We expect the uptrend to continue today, breaking the 1.6100 resistance level.
USD / CHF
Against the Swiss franc, the dollar lost 80 pips in the European morning hours and is priced right now at 1.0510. We expect an upward correction of the quick move,
with the market touching 1.0540 and a renewed weakness leading to the 1.0460 mark.
USD / JPY
In a correction of its upmove against the yen in Asian trading, the Dollar is currently trading at 90.40 and, in our view, on the way back to the 90.90 resistance line. This we expect to be broken eventually, but not before a longer consolidation phase.
