GFT Daily Forex Market Commentary

[B]Forex Market Commentary for July 9, 2007 by Cornelius Luca[/B]

GFT Daily Forex Market Commentary
The dollar spiked up briefly on Friday following the strong employment report. But only the euro was a beneficiary. The immediate outlook for the dollar is sideways to higher.


Euro/dollar made the expected decline only early on Friday, when it hit a four-day low. But the rally was unconvincing. But sell is only if below 1.3565 only on a closing basis. The medium term view is still bullish.

Immediate resistance is seen at 1.3635. A close above the pivot high at 1.3679 would signal a further aggressive attack to 1.3750.

Initial support is at 1.3570. Below 1.3530, the next levels are 1.3480 and 1.3440.

Oscillators are rising.

NEAR-TERM: Mixed to slightly bearish
LONG-TERM: Bullish


Dollar/yen rallied to a one-week high on Friday, It should attempt to rally today as well.
Immediate resistance is at 123.55. Above it, strong resistance is seen from a 50-point pivot at 124.00 that targets 123.50 and 124.50.
Initial support is at 123.10. Key support remains at 122.50 from another 50-point pivot, which targets 122.00 and 123.00.
Oscillators are mixed.

NEAR-TERM: Mixed to slightly higher
LONG-TERM: Bullish


Sterling/dollar sank to a one-week low on Friday after coining a 26 1/4-year high earlier last week. The overbought pair stands at the edge of the abyss.
Immediate support is seen at 2.0050. 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.

Initial resistance is at 2.0150. Above 2.0195, resistance is still seen at 2.0250 and 2.0315.

Oscillators are falling.

NEAR-TERM: Bearish
LONG-TERM: Bearish

Dollar/Swiss franc

Dollar/Swiss franc slipped from a one-week high on Friday. The medium-term outlook remains mixed.

Initial resistance is at 1.2205. Next level remains at 1.2250. Distant resistance is at 1.2310.
Immediate support is now seen at 1.2140. Below 1.2100, strong supports follow at 1.2065 and 1.2030.

Oscillators are mixed.