Forex Market Commentary for February 8, 2008 by Cornelius LucaGFT Daily Market Commentary
The dollar rose broadly on Thursday, in part because the BoE made the expected rate cut and ECB President Trichet finally accepted that the Eurozone growth risks are to the downside. The US currency should pad its gains today.
Euro/dollar
Euro/dollar fell sharply on Tuesday and the magnitude of the decline surpassed expectations. The downside remains guardedly favored.
Below 1.4420, support is now seen at 1.4367 from a pivot low. The next support looms at 1.4303. Distant support is pegged at 1.4125
Initial resistance is at 1.4530. Above 1.4610, resistance now comes at 1.4690. Distant resistance follows at 1.4848.
Oscillators are falling.
NEAR-TERM: Mixed with bearish bias
MEDIUM-TERM: Mixed
LONG-TERM: Bullish
Dollar/yen
Dollar/yen aggressively reversed early losses and closed at the highest level since January 16. The pair should attempt to pad its gains.
Good resistance now comes at 107.95 from a 50-point pivot that targets 107.45 and 108.45.
Strong support comes at 106.85. Below 106.35, distant resistance follows at 105.50 from a 50-point pivot, which targets 115.00 and 116.00.
Oscillators are rising.
NEAR-TERM: Slightly bullish
MEDIUM-TERM: Mixed
LONG-TERM: Bearish
Sterling/dollar
Sterling/dollar tumbled again amid lower interest rates. The downside pressure should continue, as the medium-term outlook remains negative.
Below 1.9395, support is now seen at 1.9330. Distant support moved down to 1.9230.
Initial resistance comes at 1.9500. This is followed by 1.9615. Distant resistance comes at 1.9720.
Oscillators are declining.
NEAR-TERM: Bearish
MEDIUM-TERM: Bearish
LONG-TERM: Mixed
Dollar/Swiss franc
Dollar/Swiss broke out from an inside range on its way to a 2 ½-week high. It stopped short of forming a double bottom. Once again, following some early weakness, the pair should attempt another rally.
Initial resistance remains at 1.1105. This is followed by 1.1125. Further resistance comes at 1.1170.
Immediate support is now seen at 1.1000. The next level is 1.0940. Below 1.0865, support is pegged at 1.0729 from a pivot low.
Oscillators are rising.
NEAR-TERM: Mixed with upside bias
MEDIUM-TERM: Bearish
LONG-TERM: Bearish