[B]Forex Market Commentary for April 2, 2007 by Cornelius Luca[/B]
GFT Daily Forex Market Commentary
The dollar fell sharply, but briefly, on Friday, despite generally good economic data, after the U.S. Commerce Department added new duties on imports from China. The U.S. currency should attempt to recover on the first day of the second quarter – unless the ISM Manufacturing PMI report for March is weak.
Euro/dollar
Euro/dollar encountered aggressive trading on Friday, but when the dust settled, it closed little changed. Mixed to higher trading is favored.
Immediate support comes at 1.3295. Next level is 1.3255. Below 1.3225, support remains at 1.3200.
Initial resistance is at 1.3400. Next levels are 1.3435 and 1.3475.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/yen
The dollar/yen was all over the place on Friday, but made little progress and remained confined to a medium-term consolidation phase.
Initial resistance remains at 118.25 from a 50-point pivot that targets 117.75 and 118.75. Next level is 119.00.
Below 117.35 there is support at 116.85, from a 50-point pivot, which targets 116.35 and 117.35.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Slightly bullish
LONG-TERM: Bullish
Sterling/dollar
Sterling/dollar recovered from a 10-day low to close higher on Friday. Mixed trading is favored.
Initial resistance is at 1.9660. If this level breaks, Cable would likely take another swing at the pivotal 1.9725 level.
Initial support is at 1.9545. Strong support follows at 1.9460. Next level is at 1.9365. Below 1.9340 support remains at 1.9300. Support then follows between 1.9260 and 1.9250.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Mixed
LONG-TERM: Mixed
Dollar/Swiss franc
Dollar/Swiss fell from a 17-day high to close lower on Friday. The pair should consolidate today.
Immediate support remains at 1.2080. There is a key level at 1.2050. Below 1.2030, dollar/Swiss franc has strong support at 1.2000.
Initial resistance comes at 1.2235. Above 1.2370, strong resistance comes at 1.2400.
Oscillators are mixed.
NEAR-TERM: Mixed with bearish bias
MEDIUM-TERM: Bearish
LONG-TERM: Mixed