Forex
The Dollar`s rise in Asian trading hours continued in the European morning, leading to new short term cyclical lows in EUR/USD and GBP/USD. We expect the selling in those pairs to dry out today around present levels, and see some recovery moves to set in today, to 1.4085 in EUR/USD and 1.6195 in GBP/USD. USD/CHF would correct downwards in our view, to 0.8790, while USD/JPY, in a contrarian weak move right now, has some upside potential to 81.80.
Stock Indices
Asian markets continued to weaken today, and European indices this morning seem to begin a consolidation move of their lower levels right now. We expect more of that today, including a slight buying tone in form of an up correction, and reckon with following levels for today: FTSE between 5920 and 5980, DAX 7100/7180, SMI 6400/6470. The same for DJII and NASDAQ, within the parameters of 12425/12580 and 2345/2375.
Swiss e Trade AG
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