Forex Market Commentary for February 11, 2008 by Cornelius LucaGFT Daily Market Commentary
One day after gaining across the board, the dollar consolidated on Friday. With the G7 doing its usual nothing, the US currency should encounter choppy trading today while looking for direction.
Euro/dollar
Euro/dollar enjoyed some siesta after falling sharply on Thursday. A triple top seems to be in the making, but a confirmation will be only from a close below 1.4400 and Thursday’s and Friday’s lows were on the trendline support. The downside remains guardedly favored.
Immediate support is at 1.4440. Below 1.4400, there are two pivot points at 1.4367 and 1.4311.
Initial resistance is at 1.4560. Above 1.4620, 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 didn’t anything on Friday. The pair should attempt again today to pad its gains.
Good resistance now comes at 107.95 from a 50-point pivot that targets 107.45 and 108.45.
Initial support moved up to 106.75 from a 50-point pivot that targets 106.25 and 107.25. Distant resistance follows at 105.50 from a 50-point pivot, which targets 115.00 and 116.00.
Oscillators are rising.
NEAR-TERM: Mixed
MEDIUM-TERM: Mixed
LONG-TERM: Bearish
Sterling/dollar
Sterling/dollar traded sideways in a tight range on Friday. The downside pressure should continue, as the medium-term outlook remains negative.
Immediate support is now seen at 1.9338 from a pivotal low. The next level follows at 1.9185. Distant support moved down to 1.9103.
Initial resistance comes at 1.9555. A break above 1.9575 would signal a further rally to 1.9800.
Oscillators are declining.
NEAR-TERM: Bearish
MEDIUM-TERM: Bearish
LONG-TERM: Mixed
Dollar/Swiss franc
Dollar/Swiss consolidated in a small range on Friday and is looking for direction today. Once again, following some early weakness, the pair should attempt another rally.
Initial resistance now comes at 1.1103. Above 1.1160, resistance comes at 1.1245.
Immediate support is seen at 1.0970. The next level is 1.0880. Below 1.0770, 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