[B]Forex Market Commentary for May 7, 2007 by Cornelius Luca[/B]
GFT Daily Forex Market Commentary
The dollar sank on Friday after the weak non-farm payrolls report. More weakness should be seen on Monday.
Euro/dollar
The euro/dollar reversed early losses, and Thursday’s losses as well and today should see more strength. A bullish reversal seems to be in place.
Immediate resistance is at 1.3620. Above 1.3683, resistance comes at 1.3805. Distant resistance is now seen at 1.3915.
There is initial support at 1.3535. Below 1.3470 there is support at 1.3440.
Oscillators are mixed.
NEAR-TERM: Mixed to slightly bearish
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen reversed gains on Friday and the bearish reversal calls for more weakness today.
Below 119.90, support comes at 119.65 from another 50-point pivot that targets 119.15 and 120.15.
Resistance is at 120.75. Distant resistance now comes at 121.05 from a 50-point pivot, which targets 120.55 and 121.55.
Oscillators are rising.
NEAR-TERM: Mixed to slightly higher
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Sterling/dollar
Sterling/dollar reversed losses on Friday following the weak non-farm payrolls report. Expect more gains today.
Initial resistance is at 1.9995. Above 2.0070, resistance remains between 2.0131 and 2.0151. If this area breaks, the pound would likely take attack a Gann level at 2.0200. Further resistance looms in the 2.0300 area, but this is very unlikely.
Immediate support is at 1.9845. A close below this level would signal trouble for the Cable’s uptrend. It would then challenge the 1.9800 area.
Oscillators are falling.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss franc fell on Friday and this weakness should persist. The medium-term selling pressure is now back in play.
Immediate support is at 1.2095. Next level is 1.2065. Below 1.1996 there is a key level at 1.1945. Dollar/Swiss franc then has strong support at 1.1885.
It would take a break above the resistance at 1.2195 to signal a more sustained recovery. Further resistance is at 1.2255 and 1.2290.
Oscillators are mixed.
NEAR-TERM: Mixed to slightly higher
MEDIUM-TERM: Slightly bearish
LONG-TERM: Slightly bearish