[B]Forex Market Commentary for June 19, 2007 by Cornelius Luca[/B]
GFT Daily Forex Market Commentary
The dollar extended its gains against the yen but fell versus the European currencies on Monday as well amid cross trading. Expect further choppy cross trading, particularly in carry trades.
Euro/dollar
Euro/dollar climbed further on Monday to erase losses from last week. The pair should attempt to pad its gains today as well.
Strong level remains 1.3450. Only a break above the important level at 1.3522 would signal a retest of the 1.3553 area. A more aggressive upmove would attack 1.3610, but this is unlikely.
Immediate support is in place at 1.3380. This is followed by 1.3335. The next levels are 1.3300 and 1.3264.
Oscillators are mixed.
NEAR-TERM: Bullish
MEDIUM-TERM: Bearish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen climbed further on Monday to reach a new high for the uptrend. Look for some pullback before some more strength will be seen.
Immediate resistance is seen at 123.90. Nearby there is a 50-point pivot at 124.00 that targets 123.50 and 124.50.
Initial support is at 123.00. Key support now comes at 122.50 from another 50-point pivot, which targets 122.00 and 123.00.
Oscillators are rising.
NEAR-TERM: Slightly bullish
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Sterling/dollar
Sterling/dollar rallied to an 11-day high on Monday and formed a short-term double bottom that targets the 1.9950 area. Look now for more mild gains.
Immediate resistance is at 1.9880. If it breaks, then look for a further rebound to 1.9925 and 1.9950. Next level is 2.0035.
Initial support is at 1.9800. If this level gives way, look for a test of the 1.9770. further support at 1.9700 and 1.9660.
Oscillators are rising.
NEAR-TERM: Mixed with upside bias
MEDIUM-TERM: Bearish
LONG-TERM: Bearish
Dollar/Swiss franc
Dollar/Swiss franc recouped early losses to close little changed on Monday. Expect sideways to higher trading on the back of carry trades.
Initial resistance is at 1.2450. Above the resistance at 1.2471 there is good resistance is at 1.2572.
Immediate support is still seen at 1.2390. Strong support follows at 1.2350. Below 1.2270, the next level is 1.2230.
Oscillators are rising.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Mixed