[B]Forex Market Commentary for February 22, 2007 by Cornelius Luca[/B]
GFT Daily Forex Market Commentary
The dollar rallied versus the yen on Wednesday on relief that the BoJ managed to hike rates to .5% and to promise gradual rates. It closed little changed versus the European currencies, so the yen crosses should keep on pushing higher.
Euro/dollar
Euro/dollar traded sideways again and closed little changed on Wednesday. Mixed trading remains favored today.
Initial resistance is at 1.3160. Above 1.3200, the euro/dollar should challenge the pivotal 1.3296 area.
Immediate support is at 1.3110. Next level remains 1.3080. Below 1.3030 there is support at 1.2985 and 1.2940. There are two distant pivotal lows at 1.2882 and 1.2868.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Mixed
LONG-TERM: Bullish
Dollar/yen
Dollar/yen rallied after the BoJ hiked rates on Wednesday. The market had discounted the move and should now edge higher still.
Immediate resistance is at 121.05 from a 50-pip pivot, which targets 121.55 and 120.55. There is a pivotal high at 122.08.
Initial support remains at 120.55. Below 120.00 there is support at 119.65 from a 50-pip pivot, which targets 120.15 and 119.15.119.15.
Oscillators are rising.
NEAR-TERM: Slightly bullish
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Sterling/dollar
Sterling/dollar traded sideways on Wednesday. The pair should remain in a trading range.
Immediate support is between 1.9485 and 1.9475. A break below the key 1.9445 level would signal a test of 1.9390.
Initial resistance is at 1.9550. Once again, the 1.9585 level must break if a further correction may ensue. Next level is 1.9635. Further resistance looms at 1.9676 from a pivot high.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Mixed
Dollar/Swiss franc
Dollar/Swiss franc rallied to a one-week high on Wednesday before giving up gains. This means the head-and-shoulder pattern, which targets 1.2190, is now in danger.
Initial resistance is seen at 1.2410 and this level must hold on a closing basis if there is much hope for a medium-term decline. Above 1.2425, resistance remains at 1.2510. There is a pivotal high level is 1.2570.
Immediate support is now seen at 1.2340. Further support lies at 1.2313. Below 1.2285 there is support at 1.2220, but this level should not be seen.
Oscillators are rising.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bullish