Forex Market Commentary for April 22, 2008 by Cornelius LucaGFT Daily Market Commentary
The dollar made a corrective decline versus all the majors on Monday, but surged against the pound as a result of the BoE’ efforts to alleviate the credit crunch. The dollar should attempt to rally today.
Euro/dollar
Euro/dollar recovered Friday’s losses, but held below 1.6000 and my model remains short. The risk is on the downside, but choppy trading should prevail.
\Above 1.5950, the next levels are 1.6000 and 1.6040. Distant resistance is now seen at 1.6185.
Initial support is seen at 1.5874. Below 1.5815, euro/dollar has support at 1.5760. Distant support is at 1.5715.
Oscillators are falling.
NEAR-TERM: Mixed with downside risk
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen edged lower in an inside range after surging to the highest level since the end of February a day earlier. My system is long. The risk is now on the upside.
Immediate resistance is at 103.80. The next levels are at 104.50, 105.20 and 105.50. Distant resistance is at 107.45.
Initial support is right here at 103.40 from a 50-point pivot, which targets 102.90 and 103.90.
Oscillators are rising.
NEAR-TERM: Mixed to slightly bullish
MEDIUM-TERM: Mixed to slightly bullish
LONG-TERM: Bearish
Sterling/dollar
Sterling/dollar reversed from a new high for the upmove to take out Friday’s gains – and some of Thursday’s as well. My model went short. But the initial move should be up.
Initial resistance now comes at 1.9870. There is a pivot high at 1.9930. This is followed by 2.0085.
Immediate support is seen at 1.9775. This is followed by 1.9690 and 1.9557.
Oscillators are falling.
NEAR-TERM: Mixed with upside risk
MEDIUM-TERM: Mixed
LONG-TERM: Mixed
Dollar/Swiss franc
Dollar/Swiss fell in an inside range but my model remains long. Choppy trading with upside bias is expected today.
Initial resistance now comes at 1.0135. This is followed by 1.0230. The next level is 1.0283.
Immediate support is now seen at 1.0040. This is followed by 0.9965 and .9875.
Oscillators are mixed.
NEAR-TERM: Mixed with upside risk
MEDIUM-TERM: Mixed
LONG-TERM: Bearish