[B]Forex Market Commentary for May 22, 2007 by Cornelius Luca[/B]
GFT Daily Forex Market Commentary
The dollar remained firm on Monday, as expected. There is little reason to expect a change in this strength today.
Euro/dollar
Euro/dollar marched lower on Monday, hitting its lowest level since April 12, and this decline should persist today as well.
There is initial support at 1.3430. Below it there is support at 1.3390 and 1.3375. Next support is at 1.3305.
Immediate resistance is at 1.3495. Only a close above 1.3545 would signal another attack on the upside to 1.3610. This is unlikely.
Oscillators are declining.
NEAR-TERM: Slightly bearish
MEDIUM-TERM: Mixed with downside bias
LONG-TERM: Bullish
Dollar/yen
Dollar/yen rallied to a new three-month high on Monday. It should try to push further up today as well.
Above 121.65, resistance remains at 122.18. Further resistance comes at 122.50 from another 50-point pivot, which targets 122.00 and 123.00.
Initial support is at 121.05. Next level is 120.55. Below 120.00, distant 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 sank further on Monday, as expected, and the selling pressure should continue. The medium-term outlook remains bearish.
There still is good support at 1.9655. A close below this level would signal a further slide to 1.9545.
Strong resistance is at 1.9770. If the resistance at 1.9800 breaks, then look for a rebound to 1.9885. This is unlikely.
Oscillators are declining.
NEAR-TERM: Slightly bearish
MEDIUM-TERM: Mixed
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss franc surged further to an over two-month high and its bullish flag is on track. The short-term outlook remains mildly positive.
Above the resistance at 1.2332 there is good resistance at 1.2370. Next target is 1.2437. Distant resistance looms at 1.2554.
Immediate support is at 1.2285. This is followed by 1.2210. Below 1.2170, distant levels are 1.2095 and 1.2065.
Oscillators are declining.
NEAR-TERM: Slightly bullish
MEDIUM-TERM: Mixed
LONG-TERM: Slightly bearish