GFT Daily Market Commentary

Forex Market Commentary for October 10, 2007 by Cornelius LucaGFT Daily Market Commentary

The dollar made the expected recovery on very early on Tuesday and then reversed gains to close lower. Trading should remain choppy before a more significant bounce may come to fruition. The initial bias is down.


Euro/dollar reversed from a 2 ½-week low to close higher on Tuesday. The medium-term uptrend remains in place but the short-term bias is still slightly negative.
A move above 1.4185 would negate the pullback. Above 1.4281, strong resistance is seen only at 1.4400.
Euro/dollar has initial support at 1.4060. This is followed by 1.4000. Only a break below 1.3965 would confirm that a peak is in place. Next level is 1.3935.

Oscillators are mixed.

LONG-TERM: Bullish


Dollar/yen trimmed losses on Tuesday to close little changed after rallying to a seven-week high on Monday. The upside is cautiously favored.

Immediate resistance is still seen at 117.50. Above 117.85 there is distant resistance at 118.25 from a 50-point pivot that targets 117.75 and 118.75.
Strong support remains at 116.85 from another 50-point pivot that targets 116.35 and 117.35.
Oscillators are rising.

NEAR-TERM: Mixed to slightly bullish
MEDIUM-TERM: Slightly bullish


Sterling/dollar made the expected only early on Tuesday, when it hit a 1 ½-week low, and then reversed losses. The uptrend remains in place, but the short-term is negative.
Initial resistance is at 2.0425. The next cp floats at 2.0470. Strong resistance comes at 2.0530. If this level gives way, look for a test of the pivotal high at 2.0654.

Immediate support is still seen at 2.0315. Next level is at 2.0275. Distant support comes at 2.0150.
Oscillators are mixed.

LONG-TERM: Bullish

Dollar/Swiss franc

Dollar/Swiss rallied to its highest level in three weeks early on Tuesday before reversing gains. The medium-term upmove remains in place but the immediate bias is lower.

Immediate support is at 1.1825. This is followed by 1.1740 and 1.1695. Below 1.1585, there is distant support at 1.1495.
Initial resistance is at 1.1865. Above 1.1935, distant resistance is at 1.2005.

Oscillators are mixed.

LONG-TERM: Bearish