GFT Daily Market Commentary

Forex Market Commentary for July 22 2008 by Cornelius LucaGFT Daily Market Commentary

The oil and gold prices went up and the dollar eventually tumbled on Monday. The medium-term outlook remains negative, but the dollar failed to make an upmove, so the downside is favored.

Euro/dollar

Euro/dollar rallied broadly but this my model went long. Both the short-term and the medium-term outlooks are bullish.

Immediate resistance is now at 1.5940. The next levels is 1.5970 and a pivot high follows at 1.6036. Above 1.6055, distant resistance is at 1.6135.

Initial support is at 1.5880. Below 1.5830, support is remains at 1.5765. The next good level remains at 1.5685.

Oscillators are rising.

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

Dollar/yen

Dollar/yen reversed early gains and closed lower after failing to break the declining trendline. The short-term outlook is slightly negative.

Initial support is at 106.25. Below 105.85, support is at 105.60 from a 50-point pivot that targets 105.10 and 106.10.

Immediate resistance is at 106.75 from a 50-point pivot, which targets 106.25 and 107.25. The trendline is at 107.05. Further resistance still comes at 107.95 from a 50-point pivot, which targets 107.45 and 108.45.

Oscillators are mixed.

NEAR-TERM: Slightly bearish
MEDIUM-TERM: Mixed
LONG-TERM: Mixed

Sterling/dollar

Sterling/dollar is still alternating up and down days, so Tuesday should see at least some weakness! But my model remains long and t he medium-term outlook remains positive.

Initial resistance now comes at 2.0040. This is followed by 2.0085. A pivot high follows 2.0155. Distant resistance is at 2.0250.

Immediate support is seen at 2.0000. The next strong level is 1.9935. Below 1.9905, support is seen at 1.9850.

Oscillators are mixed.

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

Dollar/Swiss franc

Dollar/Swiss reversed Friday’s gains but remained in an inside range on Monday and my model went short. The risk is on the downside today.

Initial support remains at 1.0135. Below 1.0095, support is seen at 1.0013 and .9984.

Immediate resistance is at 1.0200. Above 1.0245, resistance now comes at 1.0315. This is followed by 1.0390.

Oscillators are mixed.

NEAR-TERM: Slightly bearish
MEDIUM-TERM: Slightly bearish
LONG-TERM: Mixed