[B]Forex Market Commentary for May 8, 2007 by Cornelius Luca[/B]
GFT Daily Forex Market Commentary
The dollar sank further on Monday, as expected, after Friday’s soft non-farm payrolls report. The strong German factory goods orders helped the euro More weakness should be seen on Tuesday.
Euro/dollar
The euro/dollar edged higher on Monday as well and today should see more strength. A bullish reversal seems to be in place.
Immediate resistance is at 1.3635. Above 1.3683, resistance comes at 1.3805. Distant resistance is now seen at 1.3915.
There is initial support at 1.3580. Next level is 1.3535. Below 1.3470 there is support at 1.3440.
Oscillators are mixed.
NEAR-TERM: Mixed to slightly bullish
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen reversed edged lower on Monday and the bearish reversal calls for more weakness today.
Good support comes at 119.65 from another 50-point pivot that targets 119.15 and 120.15.
Resistance is at 120.50 and 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 lower
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Sterling/dollar
Sterling/dollar rallied early Monday but then consolidated. Expect more gains today.
Initial resistance is still seen 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 1.9890. A close below the 1.9845 level would signal trouble for the Cable’s uptrend. It would then challenge the 1.9800 area.
Oscillators are mixed.
NEAR-TERM: Mixed to slightly higher
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss franc edged marginally lower on Monday and this weakness should persist. The medium-term selling pressure continues.
Immediate support is at 1.2070… 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 lower
MEDIUM-TERM: Slightly bearish
LONG-TERM: Slightly bearish