GFT Daily Forex Market Commentary

[B]Forex Market Commentary for April 9, 2007 by Cornelius Luca[/B]

GFT Daily Forex Market Commentary

The dollar surged in thin trading on Good Friday after the release of the US non-farm payrolls report, and the strength was in line with expectations. On Monday the European markets remain closed and the risk for the dollar remains on the upside.

Euro/dollar

Euro/dollar made a bearish reversal formation on Friday, so more weakness is expected for the overbought pair.

Immediate support comes at 1.3330. The next levels are 1.3295 and 1.3255. Below 1.3225, support remains at 1.3200.

Initial resistance remains at 1.3400. Next levels are 1.3440 and 1.3475.
Oscillators are mixed.

NEAR-TERM: Mixed with bearish bias
MEDIUM-TERM: Bullish
LONG-TERM: Bullish

Dollar/yen

Dollar/yen rallied to a six-week high on Friday and more strength should be seen.

Initial resistance is at 119.65 from another 50-point pivot that targets 119.15 and 120.15. Above 120.75, distant resistance now comes at 121.05 from another 50-point pivot.
Below 119.15 there is support at 118.75. Strong support remains 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

Sterling/dollar fell to a one-week low on Friday. The slide alleviated its short-term overbought condition. The pair must break below 1.9625 if the decline is to continue.

If 1.9625 gives way, look for support at 1.9595. Strong support follows at 1.9545. Next level is at 1.9500.

Initial resistance is at 1.9680. If this level breaks, the pound would likely take another swing at the pivotal 1.9725 level.
Oscillators are declining.

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

Dollar/Swiss franc

Dollar/Swiss franc reversed Thursday’s losses but remained in an inside range for a third consecutive week.

Initial resistance comes at 1.2240. Above 1.2370, strong resistance comes at 1.2400. Above

Immediate support is now seen at 1.2140. Below 1.2080 there is a key level at 1.2050. Then below 1.2030, dollar/Swiss franc has strong support at 1.2000.
Oscillators are mixed.

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