Forex Market Commentary for October 11, 2007 by Cornelius LucaGFT Daily Market Commentary
The dollar made the expected decline versus the European currencies, while marking time against the yen. Yen crosses remain in demand and this pattern should continue.
Euro/dollar
One day after hitting a 2 ½-week low euro/dollar climbed to a one-week high. This is in line with the medium-term uptrend.
Once again, 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 1.4115. Further supports are at 1.4060 and 1.4000. Only a break below 1.3965 would confirm that a peak is in place.
Oscillators are mixed.
NEAR-TERM: Mixed with upside bias
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen made little progress on Wednesday as well. Initially, mixed trading is probable. The upside is cautiously favored in the medium term.
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 mixed.
NEAR-TERM: Mixed to slightly bullish
MEDIUM-TERM: Slightly bullish
LONG-TERM: Mixed
Sterling/dollar
Sterling/dollar rallied to a 1 ½-week high on Wednesday. This means the uptrend remains in place, but the inability to reach its previous high puts doubt in the short-term bulls’ heart.
Initial resistance is at 2.0495. 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 now seen at 2.0395. This is followed by 2.0350. Distant support comes at 2.0275.
Oscillators are rising.
NEAR-TERM: Mixed with upside bias
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss made a tentative decline on Wednesday but recouped most of its losses. The medium-term upmove remains in place but the immediate bias is mixed.
Immediate support is at 1.1790. 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.
NEAR-TERM: Mixed
MEDIUM-TERM: Mixed
LONG-TERM: Bearish