Forex Market Commentary for August 31, 2007 by Cornelius LucaGFT Daily Market Commentary
Choppy trading ruled the FX markets on Thursday as well, with the yen crosses struggling for direction and with the components trading one day up and one day down. The market lacks much direction ahead of the long weekend, so if you must trade focus on short-term trades and take some cues from the bevy of Japanese and US data.
Euro/dollar
Euro/dollar reversed most of Wednesday’s gains but was stuck in an inside range. Its initial bias is up.
Initial resistance is at 1.3680 and 1.3700 is next. This is followed by 1.3775. Above the weak trendline at 1.3820, resistance looms at 1.3853 from a pivotal high.
Immediate support is at 1.3595. Below it, euro/dollar still has support comes at 1.3555. A break below the latter level would signal the resumption of the downmove, but this is unlikely. Next level is at 1.3480.
Oscillators are mixed.
NEAR-TERM: Mixed with upside bias
MEDIUM-TERM: Bearish
LONG-TERM: Mixed
Dollar/yen
Dollar/yen recouped most of its losses on Thursday but got stuck in an inside range. Again, get your cues from EUR/JPY.
Initial support is at 115.50 from another 50-point pivot, which targets 115.00 and 116.00. Distant support is at 114.20 from another 50-point pivot that targets 113.70 and 114.70. Distant support is at 113.05.
Immediate resistance remains at 116.25. Strong resistance is at. 116.85 from a 50-point pivot that targets 116.35 and 117.35.
Oscillators are mixed.
NEAR-TERM: Mixed with downside bias
MEDIUM-TERM: Bullish
LONG-TERM: Mixed
Sterling/dollar
Sterling/dollar recouped most of its losses on Thursday but got stuck in an inside range. The initial bias is now up.
Initial resistance is at 2.0192. Above it, strong resistance follows at 2.0290. If the resistance at 2.0400 gives way, look for distant resistance at 2.0530.
Immediate support is still seen at 2.0090. Strong support follows at 1.9980. A break below the 1.9920 level would signal a further slide to 1.9780.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss franc made an aggressive rally in Thursday but trimmed some of its gains. Expect some mild weakness today.
Immediate support is now seen at 1.2020. Then, there is a pivot low at 1.1962. Below 1.1870, support is seen at 1.1819.
Initial resistance is seen at 1.2070. This is followed by 1.2110 and 1.2140.
Oscillators are mixed.
NEAR-TERM: Mixed with downside bias
MEDIUM-TERM: Bullish
LONG-TERM: Bearish