GFT Daily Forex Market Commentary

[GFTforex]

Forex Market Commentary for June 28, 2007 by Cornelius Luca

GFT Daily Forex Market Commentary

The dollar managed to shake away weak New Home Sales and Consumer Confidence reports and closed little changed again on Tuesday. Dollar/yen reversed early losses after verbal intervention against the carry trades failed. With the precious metals melting profits away the risk for the US currency is on the upside now.

Euro/dollar

Euro/dollar made little progress on Tuesday as well, so traders are still looking for the next short-term direction. The medium-term outlook is less bullish now, with the short-term outlook bearish.

Initial support is at 1.3425. Below the 1.3373 level there is support at 1.3264 from a pivot low.
Immediate resistance is still seen at 1.3480. A close above 1.3553 would signal another aggressive attack on the upside to 1.3610.

Oscillators are rising.

NEAR-TERM: Mixed with downside risk
MEDIUM-TERM: Bullish
LONG-TERM: Bullish

Dollar/yen

Dollar/yen recovered most losses from a 12-day low and is likely to consolidate in its major uptrend.
Initial support is at 123.00. Below it, key support comes at 122.50 from another 50-point pivot, which targets 122.00 and 123.00.
Immediate resistance is still seen from a 50-point pivot at 124.00 that targets 123.50 and 124.50.
Oscillators are rising.

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

Sterling/dollar

Sterling/dollar hit a marginally new high on Tuesday, and this strength was helped by expectations for a rate hike. The medium-term outlook remains bullish, but more choppy trading is now likely.
Initial resistance now comes at 2.0016 from Tuesday’s high. Distant resistance remains between 2.0131 and 2.0151.
Immediate support is seen at 1.9975. If 1.9940l gives way on a closing basis, look for further decline to the support at 1.9910. That’s unlikely.

Oscillators are rising.

NEAR-TERM: Slightly bullish
MEDIUM-TERM: Bullish
LONG-TERM: Bearish

Dollar/Swiss franc

Dollar/Swiss franc recouped losses from an 18-day low again with help from the 55-day moving average. It should attempt to climb up from here.
Above the resistance at 1.2310 there still is good resistance at 1.2350.
The initial support is at 1.2261 from Tuesday’s low. The next support is seen at 1.2230. Strong support follows at 1.2175.

Oscillators are falling.

NEAR-TERM: Mixed with upside risk
MEDIUM-TERM: Bullish
LONG-TERM: Mixed