[B]Forex Market Commentary for April 5, 2007 by Cornelius Luca[/B]
GFT Daily Forex Market Commentary
The dollar fell against all the majors expect for the pound, and this is peculiar since nearly half of the market expected the Bank of England to hike rates on Thursday. With the non-farm payrolls data and the Easter approaching, the market should lack much volatility today.
Euro/dollar
Euro/dollar on Wednesday recouped all of the losses made a day earlier but remained confined to an inside range. The immediate outlook is mixed.
Above 1.3385 the pair has two pivotal highs at 1.3400 and 1.3410. Next levels are 1.3435 and 1.3475. Distant resistance is at 1.3585.
Initial support is at 1.3350. Below 1.3315, the next area of support is between 1.3283 and 1.3288. There is a pivot low at 1.3253.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen fell from a new high for the uptrend but the decline was mild. The pair should attempt another mild upmove today, but sideways trading is expected.
Above 119.15, dollar/yen still has strong resistance at 119.65 from another 50-point pivot that targets 119.15 and 120.15.
Initial support remains at 118.40. Strong support is at 118.25 from a 50-point pivot that targets 117.75 and 118.75.
Oscillators are rising.
NEAR-TERM: Mixed with bullish bias
MEDIUM-TERM: Slightly bullish
LONG-TERM: Bullish
Sterling/dollar
The overbought sterling/dollar traded sideways on Wednesday. The pair remains in a sideways pattern.
Initial resistance is at 1.9780. Next level looms at 1.9821. A break above this level would signal another bout of aggressive strength, but this is unlikely. There is a pivot high at 1.9914.
Below 1.9725 the pair retains support at 1.9675. The next level comes at 1.9630. It would take a close below this level to signal the end of the uptrend, but this is less likely.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Mixed
Dollar/Swiss franc
Dollar/Swiss closed lower on Wednesday after trimming about half of its early losses. Expect sideways trading today.
Immediate support is at 1.2190. Only a break below 1.2150 would signal the return to range trading. The pair would then slide to 1.2100.
Initial resistance is at 1.2230. A break above this level would signal a rally to 1.2300. Distant resistance is at 1.2355.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Mixed