[B]Forex Market Commentary for July 5, 2007 by Cornelius Luca[/B]
GFT Daily Forex Market Commentary
The dollar consolidated on Wednesday, as the US markets wre closed for the Independence Day holiday. Expect mixed trading today as well
Euro/dollar
Euro/dollar consolidated near the high for the uptrend. There should be mixed today, but the medium-term outlook is positive.
Immediate resistance is seen at 1.3685. A break above this level would signal another aggressive attack on the upside to 1.3750. Distant resistance looms at 1.3810.
Initial support is at 1.3595. Next levels are 1.3563, 1.3505, 1.3480 and 1.3440.
Oscillators are rising.
NEAR-TERM: Bullish
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen treaded water but held in the vicinity of the nearly three-week low that was reached on Monday. It should attempt to rally today after getting support from the trendline.
Key support remains at 122.50 from another 50-point pivot, which targets 122.00 and 123.00.
Immediate resistance is at 123.00. Next level is 123.55. Above it, strong resistance is seen from a 50-point pivot at 124.00 that targets 123.50 and 124.50.
Oscillators are mixed.
NEAR-TERM: Mixed to slightly higher
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Sterling/dollar
Sterling/dollar coined a marginally new 26-year high on Tuesday. The outlook is bullish ahead of the rate hike on Thursday.
Above 2.0195, resistance is still seen at 2.0250 and 2.0315.
Immediate support is seen at 2.0135. Only a break below 2.0020 on a closing basis would signal the likely end of the upmove, but this is unlikely. In that case you’d have to look for the further support at 1.9910.
Oscillators are rising.
NEAR-TERM: Bullish
MEDIUM-TERM: Bullish
LONG-TERM: Bearish
Dollar/Swiss franc
Dollar/Swiss franc recovered about half of the losses incurred on Monday. The medium-term outlook is bearish.
Initial resistance is at 1.2190. Next level is 1.2250. Distant resistance is at 1.2310.
Immediate support is still seen at 1.2100. Strong supports follow soon at 1.2065 and 1.2030.
Oscillators are falling.
NEAR-TERM: Mixed
MEDIUM-TERM: Mixed
LONG-TERM: Mixed