Forex Market Commentary for February 5, 2008 by Cornelius LucaGFT Daily Market Commentary
The dollar saw the expected strength only in early trading and then it gave it all up. Mixed trading should be seen today unless there is news about the bond insuring companies…
Euro/dollar
Euro/dollar consolidated in an inside range on Monday. The downside remains guardedly favored.
Immediate support is at 1.4760. The next levels are 1.4710 and 1.4640. These levels are followed by 1.4580.
Above 1.4880, resistance now comes at 1.4956. Strong resistance follows at 1.4966 from a pivot high.
Oscillators are mixed.
NEAR-TERM: Mixed with bearish bias
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen gave back most of its timid early gains on Monday. Mixed trading should prevail.
Good resistance is at 107.30. Above it, strong resistance remains at 107.95 from a 50-point pivot that targets 107.45 and 108.45.
Initial support comes at 106.50. Below 106.00, strong support follows at 105.50 from a 50-point pivot, which targets 115.00 and 116.00. Distant support lies at 104.25.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bearish
Sterling/dollar
Sterling/dollar reversed early losses to close slightly higher on Monday. With the BoE expected to cut rates on Thursday, the risk remains on the downside. Only a close below 1.9645 would warrant further losses.
Immediate support is now seen at 1.9700. The next level follows at 1.9625. Distant support moved down up to 1.9500.
Initial resistance comes at 1.9800. A break above it would be quite bullish and suggest a further rally to 1.9940.
Oscillators are rising.
NEAR-TERM: Mixed with downside risk
MEDIUM-TERM: Bearish
LONG-TERM: Mixed
Dollar/Swiss franc
Dollar/Swiss consolidated and closed little changed on Monday. The medium term trend is bearish, but some pull back is likely.
Initial resistance remains at 1.0925. This is followed by 1.1060. The next level is 1.1125.
Immediate support is still seen at 1.0825. Below 1.0770, support is pegged at 1.0729 from a pivot low.
Oscillators are declining.
NEAR-TERM: Mixed with upside risk
MEDIUM-TERM: Bearish
LONG-TERM: Bearish