GFT Daily Market Commentary

Forex Market Commentary for September 13, 2007 by Cornelius LucaGFT Daily Market Commentary

The dollar followed divergent paths on Wednesday as well, when it sank versus the euro and the franc, but rallied against the pound and to a lesser extent against the yen. No significant US data is scheduled for release today, so cross trading should hold the upper hand.


The euro/dollar rallied on Wednesday for the sixth straight day and coined a new all-time high. The failure to make a corrective decline suggests further strength.

Initial resistance is seen at 1.3928. Next resistance is pegged at 1.3955. Above 1.4000 there is distant resistance at 1.4085.

Below 1.3855, euro/dollar now has support at 1.3790. This is followed by 1.3720 and 1.3635. Only a break below 1.3600 would signal the start of a downmove.
Oscillators are rising.

NEAR-TERM: Mixed with upside bias


Dollar/yen consolidated and closed practically unchanged on Wednesday. Following a brief bounce, the pair should slip. Key level is at 114.20 from another 50-point pivot that targets 113.70 and 114.70.

Immediate resistance is seen at 114.50. Above 114.70 there is good resistance at 115.50.
Initial support is at 113.70. Strong support follows at 112.90 from a 50-point pivot that targets 113.40 and 112.40. Next strong follows at 111.60 from another 50-point pivot, which targets 112.10 and 111.10.
Oscillators are mixed.



Sterling/dollar fell from a new one-month high of 2.0366 on Wednesday on EUR/GBP buying and further weakness is in store for the overbought pair.
Immediate support is still seen at 2.0250. This is followed by 2.0210. A break below the 2.0145 level would signal a further slide to 2.0000.

Above 2.0366, strong resistance follows at 2.0400. If the resistance at 2.0470 gives way, look for distant resistance at 2.0530.

Oscillators are mixed.

NEAR-TERM: Mixed with downside bias
LONG-TERM: Bullish

Dollar/Swiss franc

The oversold dollar/Swiss sank further to a near 2 ½-year low on Wednesday. Following a brief bounce the sell-off should continue.

Below 1.1817, support is now seen at 1.1788 and 1.1740 from a pivotal low. Distant support is at 1.1715
Initial resistance is at 1.1865. Above 1.1920, resistance is at 1.1970. Distant resistance comes at 1.2025.
Oscillators are bearish.

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