[B]Forex Market Commentary for June 25, 2007 by Cornelius Luca[/B]
GFT Daily Forex Market Commentary
The dollar got hurt versus the European currencies but managed to pad its gains against the yen on Friday. The weak hosing data and the fall of the US equities accelerated the slide. The S&P 500 fell the most since early March amid fears that banks will get hit by mortgage bonds losses and because of possible fewer M&As. The dollar should remain under pressure.
Euro/dollar
Euro/dollar surged on Friday and hit an 11-week high of 1.3470. It formed a bullish flag that targets 1.3550 and the medium-term outlook turned positive.
Immediate resistance is seen at 1.3480. A close above 1.3553 would signal another aggressive attack on the upside to 1.3610.
Initial support is at 1.3440. Below the 1.3373 level there is support at 1.3264 from a pivot low.
Oscillators are rising.
NEAR-TERM: Bullish
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen reversed managed to reach a new high for the uptrend, but gave up most of its gains by the close. It is close to peaking but may still 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 123.50. 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: Peaking
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Sterling/dollar
Sterling/dollar surged on Friday to a seven-week high and nearly reached the 2.0000 threshold. The medium term outlook turned bullish and the pair is in good shape to move above this mark.
Above 2.0000, resistance remains between 2.0131 and 2.0151.
Immediate support is seen at 1.9940. If this level gives way on a closing basis, look for further support at 1.9910.
Oscillators are rising.
NEAR-TERM: Bullish
MEDIUM-TERM: Bullish
LONG-TERM: Bearish
Dollar/Swiss franc
Dollar/Swiss franc sank on Friday and formed a bearish reversal formation after rising for seven consecutive weeks. The medium term outlook is now bearish.
Immediate support is seen at 1.2230. Strong support follows at 1.2175.
Above the resistance at 1.2310 there is good resistance at 1.2350.
Oscillators are falling.
NEAR-TERM: Bearish
MEDIUM-TERM: Bullish
LONG-TERM: Mixed