Forex Market Commentary for February 7, 2008 by Cornelius LucaGFT Daily Market Commentary
The dollar made little progress on Wednesday, but didn’t incur much pressure. Sideways trading should continue today.
Euro/dollar
Euro/dollar recouped most of its losses after dipping to a near two-week low. The downside remains guardedly favored since 1.4612 broke.
Below 1.4612, support is still seen at 1.4580. The next levels are 1.4545 and 1.4490. There is a pivot low at 1.4367.
Above 1.4690, resistance now comes at 1.4730. Strong resistance follows at 1.4848. There is a pivot high at 1.4966.
Oscillators are falling.
NEAR-TERM: Mixed with bearish bias
MEDIUM-TERM: Mixed
LONG-TERM: Bullish
Dollar/yen
Dollar/yen continued to lack direction and closed slightly lower on Wednesday. Mixed trading should continue.
Good resistance remains at 107.30. Above it, strong resistance remains at 107.95 from a 50-point pivot that targets 107.45 and 108.45.
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 stopped alternating up and down days and on Wednesday it recovered most losses after sinking to a near two-week low. The downside pressure should pause today, but the medium-term outlook remains negative.
Immediate support is now seen at 1.9555. The next level follows at 1.9500. Distant support moved down to 1.9430.
Initial resistance comes at 1.9650. This is followed by 1.9690. A break above 1.9795 would be quite bullish and suggest a further rally to 1.9940. This is quite unlikely.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Mixed
Dollar/Swiss franc
One day after nailing a two-week high, dollar/Swiss traded sideways in an inside range. Once again, following some early weakness, the pair should take another stab on the upside.
Immediate support is still seen at 1.0940. Below 1.0865, support is pegged at 1.0729 from a pivot low.
Initial resistance now comes at 1.1100. This is followed by 1.1125. Further resistance comes at 1.1170.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bearish