[B]Forex Market Commentary for June 22, 2007 by Cornelius Luca[/B]
GFT Daily Forex Market Commentary
The dollar reversed losses against the pound and advanced versus the other majors, as expected, amid strong US economic data. Expect the dollar to attempt padding its gains on Friday.
Euro/dollar
Euro/dollar headed further down on Thursday, as expected. It should now consolidate before any further weakness can be seen.
Immediate support is at 1.3375. This is followed by 1.3335. The next levels are 1.3300 and 1.3264.
Strong resistance is seen at 1.2425 and then at 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: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen reversed managed to coin new highs of the uptrend. It should make another marginally new high today.
Immediate resistance is still seen from a 50-point pivot at 124.00 that targets 123.50 and 124.50.
Initial support is at 123.40. 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 traded in an inside range and closed little changed on Thursday. Again, it should correct lower before any further gains may be seen.
Immediate resistance is at 1.9950. If it breaks, then look for a further rebound to 2.0035.
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.
Oscillators are rising.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bearish
Dollar/Swiss franc
Dollar/Swiss franc rallied on Thursday, as expected. Expect a further attempt higher before the next decline can be seen.
Initial resistance is at 1.2430. Above the resistance at 1.2471 there still is good resistance is at 1.2572.
Immediate support is seen at 1.2385. Next level is 1.2355. Below 1.2270, the next level is 1.2230.
Oscillators are rising.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Mixed