GFT Daily Forex Market Commentary

[GFTforex]

Forex Market Commentary for August 16, 2007 by Cornelius LucaGFT Daily Forex Market Commentary

Dollar/Europe plunged further on Wednesday while dollar/yen declined, as the standard yen crosses and the carry trades fell victim to long liquidation. The US data showed that the economy was in good shape, but the financial system is in deep trouble.

Euro/dollar

The euro/dollar sank to a new 1 1/2-month low on Wednesday and the double top, which targets 1.3350, is in good shape. Following a mild bounce, the sell-off should continue.
Below 1.3373, support comes at 1.3350. A pivot low is at 1.3264. Distant support is at 1.3115.

Strong resistance is at 1.3480. 1.3555 follows this. The next level is 1.3600. This is followed by 1.3640 and 1.3695. Only a break above 1.3750 would negate the double top, but this is unlikely.
Oscillators are declining.

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

Dollar/yen

Dollar/yen broke out of an inside range in its way to a five-month low. Once again, the sell-off was driven by sales in commodity and European currencies. The downside remains favored, but at a slower pace.

Initial support is 116.35. Further support is at 115.50.
Initial resistance is at 116.85 from a 50-point pivot that targets 116.35 and 117.35.at 117.45. The key level is 118.25 from a 50-point pivot that targets 117.75 and 118.75.

Oscillators are declining.

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

Sterling/dollar

Sterling/dollar collapsed to a two-month low on Wednesday as it held below the 2 mark. More weakness is in store, but an immediate bounce is possible.

Immediate support is at 1.9845. Below it there is support at 1.9807. Next big level is only 1.9750!

Initial resistance is at 1.9910. Above 2.0015, strong resistance is now seen at 2.0100.
Oscillators are declining.

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


Dollar/Swiss franc

Dollar/Swiss on Wednesday surged to its highest level since June 6. It’s facing strong resistance here, so the pair should face some profit taking on long positions.

Initial resistance is at 1.2225. The next level is perched at 1.2305.

Immediate support is at 1.2160. This is followed by 1.2070. Next level is 1.2015. Distant support is still seen at 1.1950.

Oscillators are rising.

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

[tymen1]

To Cornelius Luca :

You say :

The US data showed that the economy was in good shape, but the financial system is in deep trouble.

I do not understand - it sounds like a contradiction in terms.

The latest news I am getting from some Bible prophecy websites I subscribe to suggest that America may soon be on the verge of total financial collapse - bankruptcy.

What do you think?

Kind regards, Tymen Wortel, Perth, Western Australia.