GFT Daily Market Commentary

Forex Market Commentary for April 9, 2008 by Cornelius LucaGFT Daily Market Commentary

Another wave of weak US data failed to buckle the dollar on Tuesday, while soft UK housing data hurt the pound. On Thursday the Bank of England should cut rates, so this makes sense. The dollar should see choppy trading today.

Euro/dollar

Euro/dollar gave back early gains to close flat. My model remains short, but the pair, while overbought, may still climb higher.

Initial resistance remains at 1.5800. The next levels are 1.5845 and 1.5894.
Immediate support is at 1.5675. Below 1.5625, euro/dollar has support at 1.5540. This is followed by 1.5340.

Oscillators are mixed.

NEAR-TERM: Slightly bullish
MEDIUM-TERM: Mixed
LONG-TERM: Bullish

Dollar/yen

Dollar/yen reversed early losses and my model remains long. The key level remains 102.30.
Immediate resistance is still at 102.95. The next level is at 103.40 from a 50-point pivot, which targets 102.90 and 103.90.

Initial support is at 102.30 from another 50-point pivot, which targets 101.80 and 102.80. This is followed by 101.25 from a 50-point pivot, which targets 100.75 and 101.75.
Oscillators are mixed.

NEAR-TERM: Bullish
MEDIUM-TERM: Mixed to slightly bullish
LONG-TERM: Bearish

Sterling/dollar

Sterling/dollar sank to a 1 ½-month low and this is in line with my short model. I expect choppy to lower trading today as well.

Immediate support is still seen at 1.9665. This is followed by 1.9615. Below 1.9585, distant support is at 1.9420.

Initial resistance is at 1.9740. Above 1.9825 there is further resistance at 1.9880. This is followed by 1.9990.
Oscillators are falling.

NEAR-TERM: Bearish
MEDIUM-TERM: Mixed with downside bias
LONG-TERM: Mixed

Dollar/Swiss franc

Dollar/Swiss encountered choppy trading but did nothing on Tuesday. My model remains long.

Initial resistance still comes at 1.0180. This is followed by 1.0251. The next level is 1.0375.

Immediate support remains at 1.0060. The next support is at 0.9990. This is followed by 0.9875.
Oscillators are mixed.

NEAR-TERM: Mixed
MEDIUM-TERM: Mixed
LONG-TERM: Bearish