Trichet's remarks to support the currency, "Greece is on the right track with austerity measures," yesterday were without effect on the EUR's bad performance, caused by sovereign debt problems in Greece. What's more, Portugal has added to the Euro's problems, where bond yields shot up recently - Spain is coming into the same focus now. So even the very oversold situation in the EUR / USD, calling for an upward correction in this market, could not stem the selling wave. On the other hand, it was long clear that the euro was overvalued. Considering this, it is only on its way to a fairer value, which is in the vicinity of 1.20 against the dollar, according to purchasing power parity. The actual sorrows could well keep the market under pressure for several coming trading days.
For today's trading, we are looking for points to sell the EUR / USD above the current market, as outlined below in the major pairs' list. Note the U.S. Unemployment Rate and other labor market data for January at 14:30 CET - improvements are not expected by the markets.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Further selling brought the pair to low of 1.3650 in the early European market, currently trading at 1.3670. We expect some recovery today, to 1.3725, where we would be sellers again.
GBP / USD
The pound recovered slightly against the dollar, having touched lows near the 1.5650 support level. Currently the market stands at 1.5700 and we expect the recovery to continue in today's trading, but not above the 1.5750 level.
USD / CHF
Against the Swiss franc, the dollar reached highs around 1.0790 in Asian trading, and is currently priced at 1.0740, forming a consolidation at higher levels. We would not be buyers above 1.0720, but we see another possible upmove in the making, limited near 1.0800.
USD / JPY
The dollar recovered from its sharp drop against the yen in Asian trading and is establishing a trading plateau in the European morning, currently priced at 89.45. We expect further bidding to emerge below 89.20, bringing the market up to levels slightly above 91.00.
For today's trading, we are looking for points to sell the EUR / USD above the current market, as outlined below in the major pairs' list. Note the U.S. Unemployment Rate and other labor market data for January at 14:30 CET - improvements are not expected by the markets.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Further selling brought the pair to low of 1.3650 in the early European market, currently trading at 1.3670. We expect some recovery today, to 1.3725, where we would be sellers again.
GBP / USD
The pound recovered slightly against the dollar, having touched lows near the 1.5650 support level. Currently the market stands at 1.5700 and we expect the recovery to continue in today's trading, but not above the 1.5750 level.
USD / CHF
Against the Swiss franc, the dollar reached highs around 1.0790 in Asian trading, and is currently priced at 1.0740, forming a consolidation at higher levels. We would not be buyers above 1.0720, but we see another possible upmove in the making, limited near 1.0800.
USD / JPY
The dollar recovered from its sharp drop against the yen in Asian trading and is establishing a trading plateau in the European morning, currently priced at 89.45. We expect further bidding to emerge below 89.20, bringing the market up to levels slightly above 91.00.
