GFT Daily Market Commentary

[GFTforex]

Forex Market Commentary for September 2, 2008 by Cornelius LucaGFT Daily Market Commentary


The dollar rallied early this week as oil prices sank, and the market ignored the resignation of the Japanese PM. Expect an attempt of the dollar to pad its gains.


Euro/dollar


The euro/dollar sank to a new low for its downmove. The pair should extend its decline. My model went short.

Immediate support is at 1.4557. Further supports remain at 1.4505 and 1.4440. Distant support is at 1.4265.

Initial resistance is at 1.4616. Above 1.4725, resistance is at 1.4780 from the 0.786% retracement of the upmove between February and July. This is followed by 1.4845.

Oscillators are declining.


NEAR-TERM: Bearish
MEDIUM-TERM: Bearish
LONG-TERM: Mixed


Dollar/yen


Dollar/yen consolidated sank on Monday and the selling pressure should last because of sales of euro/yen. My model remains short.

Strong support is at 107.95 from a 50-point pivot, which targets 107.45 and 108.45. Distant support follows at 106.54.

Immediate resistance is at 109.15 from a 50-point pivot, which targets 109.65 and 108.65. Next strong resistance is at 110.35 from a 50-point pivot, which targets 109.85 and 110.85.

Oscillators are declining.


NEAR-TERM: Bearish
MEDIUM-TERM: Mixed
LONG-TERM: Mixed


Sterling/dollar


Sterling/dollar sank further a new over two-year low and the selling pressure should continue.

Immediate support is at 1.7850. Further supports are at 1.7800 and 1.7717.

Initial resistance is at 1.7910 from the 0.786% retracement of the upmove between November 2005 and November 2007. The next level is 1.7965.

Oscillators are falling.


NEAR-TERM: Bearish
MEDIUM-TERM: Bearish
LONG-TERM: Bearish


Dollar/Swiss franc


Dollar/Swiss consolidated near the high price of the uptrend. The medium-term outlook remains positive.

Initial resistance comes at 1.1046. Two pivot highs are pegged at 1.1086 and 1.1106. Next level is 1.1184.

Initial support is pegged at 1.0950. This is followed by 1.0885. Below 1.0844, support remains at 1.0725.

Oscillators are rising.


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