GFT Daily Market Commentary

[GFTforex]

Forex Market Commentary for July 21 2008 by Cornelius LucaGFT Daily Market Commentary


The dollar edged higher on Friday in quiet trading. We need to see if there will be another recovery in the equity indices and a decline in the oil price. The medium-term outlook remains negative, but the dollar should attempt another upmove today.

Euro/dollar


Euro/dollar consolidated on Friday but this my model went short. The short-term outlook is slightly bearish, but the medium-term outlook remains bullish.

Immediate resistance is still at 1.5890. The next levels are 1.5910 and 1.5970. A pivot high now follows at 1.6036. Above 1.6055, distant resistance is at 1.6135.

Below 1.5830, support is remains at 1.5765. The next good level remains at 1.5685. Distant support is 1.5630.

Oscillators are mixed.


NEAR-TERM: Slightly bearish
MEDIUM-TERM: Bullish
LONG-TERM: Bullish


Dollar/yen


Dollar/yen struggled higher on Friday, but failed to test the declining trendline. The short-term outlook is cautiously positive.

Immediate resistance is at 107.10 from this line. Further resistance still comes at 107.95 from a 50-point pivot, which targets 107.45 and 108.45. .

Initial support is at 106.75 from a 50-point pivot, which targets 106.25 and 107.25. Below 105.85, support is at 105.60 from a 50-point pivot that targets 105.10 and 106.10.

Oscillators are rising.


NEAR-TERM: Slightly bullish
MEDIUM-TERM: Mixed
LONG-TERM: Mixed


Sterling/dollar


Sterling/dollar is alternating up and down days, so rallied Monday should be an up day! My model remains long. The medium-term outlook remains positive.

Initial resistance now comes at 2.0040. This is followed by 2.0085. A pivot high follows 2.0155. Distant resistance is at 2.0250.

Immediate support is seen at 1.9935. Below 1.9905, support is now seen at 1.9850.

Oscillators are mixed.


NEAR-TERM: Slightly bearish
MEDIUM-TERM: Bullish
LONG-TERM: Mixed


Dollar/Swiss franc


Dollar/Swiss consolidated in an inside range on Friday. My model went long, and the risk is on the upside today.

Immediate resistance is at 1.0245. Above it, resistance now comes at 1.0315. This is followed by 1.0390.

Initial support remains at 1.0175. This is followed by 1.0135. Below 1.0095, support is now seen at 1.0013 and .9984.

Oscillators are mixed.


NEAR-TERM: Slightly bullish
MEDIUM-TERM: Slightly bearish
LONG-TERM: Mixed