The U.S. currency remains lower overnight in Asia and during early European trading. Many traders have focused their trading goals on important dollar levels such as 1.5000 against the euro and 1.0000 against the Swiss franc, which seems to keep the Greenback on the defensive. Also, we have heard many traders referring to the lack of "strong dollar" rhetoric out of Washington as a reason to sell the dollar. Caution must be maintained, though, as the dollar is technically very oversold and we feel that as soon as the above-mentioned dollar levels are reached, a massive reversal may occur as traders take profit.
No major economic reports are scheduled for today.
by Steve Nigg
Intraday Market Outlook for Day Traders
EUR / USD
The EUR / USD is currently trading at 1.4940 near its European morning high of 1.4964. Strong daily support is located at 1.4885 with resistance seen at 1.4990. Barring any adverse event to the euro today, we will look to go long EUR / USD intraday around the support level at 1.4885 for a run up to 1.4950.
GBP / USD
The BOE minutes today did not bring any surprises but gave Sterling a boost from 1.6475 to its current level of 1.6552. From our research, many traders bought cable because of what was not said in the BOE minutes concerning QE. We see support in today's trading at 1.6350 and resistance at 1.6600.
USD / CHF
Currently at 1.0110, the USD / CHF is trading in a narrow range between the 1.0095 support and minor resistance at 1.0155. We see this pair remaining subdued in today's trading and will probabaly finish the day within the 1.0095 to 1.0155 range.
