Forex Market Commentary for January 29, 2008 by Cornelius LucaGFT Daily Market Commentary
The dollar fell versus the European currencies on Monday while trading sideways against the yen. Trading should remain choppy through Wednesday afternoon, when the Fed is supposed to cut rates. Intraday trading remains favored for today, as the market should trade one –day up and one day down.
Euro/dollar
Euro/dollar broke out of an inside range on its way to a 12-day high. Choppy to lower trading is likely today.
Immediate support is seen at 1.4730. The next level is 1.4710. Below 1.4640 there is further support at 1.4590. Distant support now comes at 1.4500.
Initial resistance now comes at 1.4825. Above 1.4870 there are pivotal highs at 1.4990 and 1.4966.
Oscillators are rising.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen consolidated on Monday, as expected. Mixed to lower trading is likely today as well.
Good support remains at 106.35. Strong support follows at 105.50 from a 50-point pivot, which targets 115.00 and 116.00. Distant support lies at 104.25.
Immediate resistance is at 106.90. Above 107.35, strong resistance remains at 107.95 from a 50-point pivot that targets 107.45 and 108.45. Distant resistance is at 109.65.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bearish
Sterling/dollar
Sterling/dollar reversed early losses to close little changed on Monday. Choppy trading is likely here.
Initial resistance is at 1.9940. The next level is at 2.0034. Distant resistance is now seen at 2.0100.
Immediate support is at 1.9810. Below 1.9780, good support comes at 1.9720. Below 1.9680, there is further support at 1.9630. The next level is at 1.9430. Distant support is pegged at 1.9338.
Oscillators are rising.
NEAR-TERM: Mixed with upside risk
MEDIUM-TERM: Bearish
LONG-TERM: Mixed
Dollar/Swiss franc
Dollar/Swiss on Monday gave back Friday’s gains. The pair remains oversold, so some more strength is likely here.
Immediate support comes at 1.0873. A pivot low is at 1.0840. A distant support follows at 1.0760.
Initial resistance comes at 1.0935. Above 1.1030, distant resistance is now seen at 1.1135.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bearish