Forex Market Commentary for September 4, 2007 by Cornelius LucaGFT Daily Market Commentary
There was no real trading during the holiday in the US after volatile trading on the last day of August. Tuesday should see sideways trading, as FX traders will start to re-populate their desks.
Euro/dollar
The euro/dollar fell from a three-week high of 1.3719 but made no discernable progress. Look for mixed to lower trading.
Below 1.3610, euro/dollar still has support at 1.3555. A break below the latter level would signal the resumption of the downmove. Next level is at 1.3480. .
Initial resistance is at 1.3719, only pips above last week’s resistance of 1.3711. This is followed by 1.3775.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Mixed
Dollar/yen
Dollar/yen gave up early gains and this helped it to remain stuck in an inside range for the second consecutive week. Expect more sideways trading and again, get your cues from euro/yen.
Initial support remains at 115.50 from another 50-point pivot, which targets 115.00 and 116.00.
Immediate resistance is at 116.85 from a 50-point pivot that targets 116.35 and 117.35. Above 117.68 there is good resistance at 118.25 from another 50-point pivot, which targets 117.75 and 118.75.
Oscillators are mixed.
NEAR-TERM: Mixed with downside bias
MEDIUM-TERM: Bullish
LONG-TERM: Mixed
Sterling/dollar
Sterling/dollar trimmed gains from an 18-day high and this made it stay stuck in an inside range. Expect further consolidation with a downside bias.
Initial resistance is at 2.0230. Strong resistance follows at 2.0290. Distant resistance is at 2.0400.
Immediate support is still seen at 2.0095. 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 another aggressive rally on Friday. The upside is limited here, so expect some mild weakness today.
Initial resistance is at 1.2115. This is followed by 1.2140. Above 1.2219, the next distant resistance is at 1.2310.
Immediate support is at 1.2020. Next level is 1.1990. Below 1.1870, support is seen at 1.1819.
Oscillators are mixed.
NEAR-TERM: Mixed with downside bias
MEDIUM-TERM: Bullish
LONG-TERM: Bearish