[B]Forex Market Commentary for February 27, 2007 by Cornelius Luca[/B]
GFT Daily Forex Market Commentary
The dollar reduced or recovered early losses on Monday, and the subsequent choppy trading showed that the markets are still seeking direction. The medium-term outlook is bearish for the dollar, but in the short term, trading should remain choppy and undecided. Perhaps the consumer confidence can provide some short-lived oomph to the low volatility market
Euro/dollar
Euro/dollar marched higher on Monday to reach is highest level since January 3. Following some minor corrective pullback, the pair should try to make another move higher.
Above the high of 1.3196, the pair has strong resistance at 1.3240. There is a pivotal top at 1.3296.
Immediate support is at 1.3145. Further support is at 1.3080.
Oscillators are rising.
NEAR-TERM: Mixed
MEDIUM-TERM: Mixed with bullish bias
LONG-TERM: Bullish
Dollar/yen
Dollar/yen headed down on Monday, as expected and in line with the short-term bearish reversal formation from Friday. Following a brief recovery today, dollar/yen should attempt a more significant downmove.
Immediate support is at 120.35. Strong support follows at 119.65 from a 50-pip pivot, which targets 120.15 and 119.15.
Strong resistance remains at 121.05 from a 50-pip pivot, which targets 121.55 and 120.55. Oscillators are rising.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Sterling/dollar
The pound struggled higher on Monday. While it remains above the top of a triangle, the pound’s break out is still minor enough at this point to remain only a red flag.
Initial resistance remains at 1.9675. A pivotal high follows at 1.9748. Above 1.9775 there is resistance at 1.9810.
Below 1.9600, the pound finds support at 1.9565. A break below 1.9500 would signal a decline to 1.9403.
Oscillators are rising.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Mixed
Dollar/Swiss franc
Dollar/Swiss franc sank to a marginally new low for the downmove on Monday and this weakness bodes well for the head-and-shoulders formation. Following a brief bounce, the pair should take another swing at the downside.
Below 1.2286, support is still seen at 1.2220. Strong support then comes at 1.2145.
Above 1.2385, resistance remains at 1.2430. Next level is 1.2480. There is a pivotal high at 1.2565.
Oscillators are falling.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bullish