[B] Forex Market Commentary for March 2, 2007 by Cornelius Luca[/B]
[B]GFT Daily Forex Market Commentary
The dollar trimmed losses versus the yen on Thursday following news that the Institute for Supply Management’s manufacturing index rose to 52.3. It also managed to rally against the European currencies, which meant further sales of crosses against the yen. This pattern should play out today as well. On Friday, only the Unoversity of Michican survey is due for release.
Euro/dollar headed lower on Thursday but remained stuck in an inside range. The pair must stop here if it has any chance to move higher.
Immediate support is at 1.3154. Next support looms at 1.3120. Below 1.3080, very strong support is seen at 1.3030.
Initial resistance is at 1.3240. Above Tuesday’s high of 1.3258, the pair has strong resistance from a pivotal top at 1.3296. Further resistance looms at 1.3325 and 1.3367.
Oscillators are rising.
MEDIUM-TERM: Mixed with bullish bias
Dollar/yen sank to a 2 ½-month low on Thursday before trimming losses with help from the ISM report. The weakness should persist overall, but a minor bounce may be seen. Please notice how well the 116.85 Gann pivot held.
So, strong support comes from a 50-point pivot at 116.85, which targets 116.35 and 117.35. Distant support is at 115.50.
Strong resistance is now in place at 118.25 from another 50-point pivot that targets 117.75 and 118.75. Above 119.00, distant resistance remains at 119.65 from a 50-pip pivot, which targets 120.15 and 119.15.
The pound fell on Thursday, but remains within recent ranges. On this milieu, the immediate outlook remains mixed.
Below 1.9545, the pound now finds support at 1.9500. A break below this level would signal a decline to 1.9403, but this weakness is unlikely.
Above 1.9600, resistance remains at 1.9675. A pivotal high follows at 1.9748. Above 1.9775 there is resistance at 1.9810.
Oscillators are mixed.
Dollar/Swiss franc climbed up on Thursday but remained within the combined range of the past two days. Once again, following a brief bounce, the pair should attempt another swing at the downside.
Above 1.2255, resistance remains at 1.2305. Next level is 1.2370.
Initial support is at 1.2180. Below 1.2142, support is still seen at 1.2100. Strong support then follows at 1.2030. Distant support is at 1.1880.
Oscillators are mixed.