MetaTrader

by Swiss e Trade Strategy Team

While the Euro is still the most stable currency against the dollar, the British pound and the Canadian dollar are more volatile. This is in contrast to the notion that the pound and the CAD should be closer in trade terms to the USD than the EUR on first sight. But that is not true anymore - the trade-weighted USD index shows clear overweight towards the euro. So when it comes to a decision which currency to short in a USD recovery, it is not the EUR, it is the GPB, CAD, AUD, or even the Swiss franc. Right now the USD seems to be recovering from oversold levels, so we would concentrate on the more volatile currencies against the Greenback, and not on the EUR.

Below are our projections in the major pairs for today‘s trading. Note the U.S. existing home sales for April, at 16:00 CET. A slight increase is expected, which would confirm a possible low in this troubled market.

by George Clement

Intraday Market Outlook for Day Traders

EUR / USD
The pair has lost its upward momentum over the last two days, continuing to consolidate its higher levels this European morning, and is currently trading at 1.3965 in low volatility. We expect more down movement in today’s trading hours, leading to levels around the 1.3900 support zone.

GBP / USD
The pound has just passed the 1.6000 long-term resistance level in early Europen trading against the dollar and is currently priced at 1.6010. With the market heavily overbought, we do not expect much more upside potential at this point for today. A downward correction is more likely, gaining momentum during today, to the 1.5850 level.

USD / CHF
A dull market for the dollar against the Swiss franc developed this European morning, currently trading around the 1.0850 support zone. We expect recovery moves today, testing the 1.0930 level again.

USD / JPY
Against the yen, the Dollar recovered remarkably in Asian trading and is keeping its higher levels in European trading. Currently priced at 95.40 near its highs, we expect the USD to break the 95.50 resistance level today, moving to a high of 95.90.