Forex Market Commentary for October 4, 2007 by Cornelius LucaGFT Daily Market Commentary
The dollar rallied across the board on Wednesday, as expected, and it alleviated most of its oversold condition. Some more weakness is likely here, but the market should then take some profit ahead of the release of the all-mighty US jobless data on Friday.
The euro fell for the third consecutive day on Wednesday in line with the bearish reversal signal. The pair is pnly slightly overbought today and a further slide to 1.4000 is possible today.
Initial support is at 1.4065. This level is important and a break below would signal that the uptrend is in danger. Below 1.4000, distant support looms at 1.3925.
Immediate resistance looms at 1.4110. The next level is at 1.4180. Above the pivotal high at 1.4281 there is resistance at 1.4310 and at 1.4430.
Oscillators are declining.
Dollar/yen rallied on Wednesday and broke loose from a double inside range. It’s testing significant resistance at 116.60 and its behavior at this level will provide short-term direction.
The immediate resistance level is at116.85 from a 50-point pivot that target: 116.35 and 117.35.
Initial support is at 116.20. Strong 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.
Oscillators are rising.
MEDIUM-TERM: Slightly bullish
Sterling/dollar sank further on Wednesday and is barely overbought here. It’s facing strong support around 2.0300 and a break below on a closing basis would signal the end of the uptrend.
Below 2.0300, support is at 2.0270. Next level comes at 2.0190. Distant support is at 2.0100.
Initial resistance comes at 2.0350. Next cap is at 2.0436. Above the pivotal high of 2.0493 there is distant resistance in place at 2.0570.
Oscillators are mixed.
Dollar/Swiss rallied sharply following the bullish reversal on Tuesday. The risk remains on the upside.
Above 1.1845 there is resistance at 1.1890 and 1.1924. A break above these levels means the pair is no longer oversold. Distant resistance is pegged at 1.2040.
Initial support comes at 1.1750. This is followed by 1.1690. Below the pivotal low at 1.1619 there is a distant support level at 1.1570.
Oscillators are mixed.