GFT Daily Forex Market Commentary

[B]Forex Market Commentary for March 20, 2007 by Cornelius Luca[/B]

GFT Daily Forex Market Commentary

The dollar made the expected weak recovery on Monday versus all the majors except for the pound. The quid was helped up by another positive housing report. The US currency should attempt another recovery today.

Euro/dollar

One day after surging to a new high for the uptrend, euro/dollar saw the expected mild reprieve. It got stuck in an inside range, saw more information is needed.
Initial support remains at 1.3250. The next level is still in place at 1.3200. Below 1.3155, the pair has support at 1.3130.
Above 1.3338, the euro/dollar would eye a pivotal high at 1.3367. The pair then has strong resistance at 1.3435 and 1.3475.
Oscillators are rising.

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

Dollar/yen

For the past three days dollar/yen has alternated up and down days, going nowhere fast, and Monday was the up day. It must break above 118.25 to snap this “pattern” or else it will slip and consolidate further.
So, initial resistance comes at 118.25 from a 50-point pivot that targets 117.75 and 118.75. Distant resistance follows 119.25 and then at 119.65.
Initial support is at 117.99. The key support level is at 116.85 from a 50-point pivot which targets 116.35 and 117.35.
Oscillators are mixed.

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

Sterling/dollar

Sterling/dollar reversed early losses on Monday with help from another positive report about the housing sector. The pair closed within an inside range and needs more information from here.
Immediate resistance is at 1.9460 and strong resistance follows at 1.9500. Above 1.9560, distant pivotal resistance is at 1.9672.
Initial support is at 1.9380. Good support then lies at 1.9300. Next levels are pegged at 1.9250 and 1.9210.
Oscillators are rising.

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

Dollar/Swiss franc

One day after sinking to a three-month low, dollar/Swiss rallied on Monday, as expected. It got stuck in an inside range, but should try to continue this recovery.
Initial resistance comes at 1.2150. If this level breaks, then the dollar should recover further to 1.2230. Distant resistance comes at 1.2290.
Strong support is at 1.2070. Below a Fibonacci retracement level at 1.2030, dollar/Swiss franc has strong support at 1.2000. Below 1.1970, there is a pivotal low at 1.1901.
Oscillators are mixed.

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