[B]Forex Market Commentary for May 21, 2007 by Cornelius Luca[/B]
GFT Daily Forex Market Commentary
The dollar rallied on Friday as well, with help from the strong Philly Fed report, and this strength should continue on Monday.
Euro/dollar
Euro/dollar sank further early Friday but then trimmed losses. This decline may persist today as well.
There is initial support at 1.3463. Below it there is support at 1.3440. Next support is at 1.3390.
A close above 1.3545 would signal another attack on the upside to 1.3610. If 1.3679 gives way, then look for a test of the resistance at 1.3805.
Oscillators are mixed.
NEAR-TERM: Mixed with downside bias
MEDIUM-TERM: Mixed with downside bias
LONG-TERM: Bullish
Dollar/yen
Dollar/yen rallied to a new trend high on Friday. It should attempt to push further on the day as well.
Above 121.55 there is resistance is at 122.18. Distant resistance now comes at 122.50 from another 50-point pivot, which targets 122.00 and 123.00.
Initial support is at 120.55. Below 120.00, strong support comes at 119.65 from another 50-point pivot that targets 119.15 and 120.15.
Oscillators are rising.
NEAR-TERM: Mixed with upside bias
MEDIUM-TERM: Mixed
LONG-TERM: Bullish
Sterling/dollar
Sterling/dollar fell further on Friday and alleviated its medium-term overbought condition. The medium-term outlook remains bearish.
Below 1.9700 there still is good support at 1.9655. A close below this level would signal a further slide to 1.9545.
If the resistance at 1.9800 breaks, then look for a rebound to 1.9885. Above 2.0000, resistance remains at 2.0131.
Oscillators are declining.
NEAR-TERM: Mixed with negative bias
MEDIUM-TERM: Mixed
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss franc surged further on Friday and its bullish flag seems to be on track. The short-term outlook remains mildly positive.
Above the resistance at 1.2282 there is good resistance is at 1.2350 and 1.2370.
Immediate and strong support is at 1.2210. Below n1.2170, the next levels are 1.2095 and 1.2065. Next levels are 1.1996 and 1.1945.
Oscillators are declining.
NEAR-TERM: Mixed with positive bias
MEDIUM-TERM: Mixed
LONG-TERM: Slightly bearish