GFT Daily Forex Market Commentary

[B]Forex Market Commentary for June 21, 2007 by Cornelius Luca[/B]

GFT Daily Forex Market Commentary

The dollar reversed losses against the yen and advanced versus the euro, but fell versus the other European currencies on Wednesday in a move led by the pound. Expect further choppy cross trading amid cross trading, particularly in carry trades. But the bias is bullish for the dollar.

Euro/dollar

Euro/dollar formed a mini bearish reversal formation on Wednesday and the pair should head further down today.

Immediate support is in place at 1.3355. This is followed by 1.3335. The next levels are 1.3300 and 1.3264.
Strong resistance 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.
Oscillators are mixed.

NEAR-TERM: Bearish
MEDIUM-TERM: Bearish
LONG-TERM: Bullish

Dollar/yen

Dollar/yen reversed losses on Wednesday and is now threatening the highs of the uptrend. It should make a marginally new high today.
Immediate resistance is seen from a 50-point pivot at 124.00 that targets 123.50 and 124.50.
Initial support is at 123.25. Below 123.00, key support 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 on Wednesday after minutes from the Bank of England policy meeting were thought to point to a UK rate rise as early as July. It should now correct lower before any further gains may be entertained.

Initial support is at 1.9875. If 1.9800 gives way, look for a test of the 1.9770. Distant supports come at 1.9700 and 1.9660.

Immediate resistance is at 1.9950. If it breaks, then look for a further rebound to 2.0035.
Oscillators are rising.

NEAR-TERM: Mixed with downside bias
MEDIUM-TERM: Bearish
LONG-TERM: Bearish

Dollar/Swiss franc

Dollar/Swiss franc fell to a nine-day low on Wednesday before trimming losses. Expect higher trading before any further weakness can be seen.
Initial resistance is at 1.2410. Above the resistance at 1.2471 there still is good resistance is at 1.2572.
Immediate support is seen at 1.2350. Below 1.2270, the next level is 1.2230.
Oscillators are slipping.

NEAR-TERM: Mixed with upside bias
MEDIUM-TERM: Bullish
LONG-TERM: Mixed