Forex Market Commentary for October 16, 2007 by Cornelius LucaGFT Daily Market Commentary
The dollar was mixed on Monday, despite the strong Empire State report, up against the yen and down against the European currencies, and quiet overnight on Tuesday. Again, the yen crosses should remain strong.
Euro/dollar
Euro/dollar edged up to a two-week high on Monday and consolidated on Tuesday. It should see further sideways trading.
Above 1.4243, the next big resistance is at 1.4286 from its all-time high. Above 1.4316, strong resistance is seen only at 1.4400.
Euro/dollar has initial support at 1.4155. This is followed by 1.4135 and 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 rising.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen edged up to a new two-month high on Monday and traded sideways early Tuesday. The upside is still cautiously favored in the medium term.
Above 117.95, resistance is seen at 118.25 from a 50-point pivot that targets 117.75 and 118.75.
Strong support comes at 117.10. Strong support is 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 made another recovery on Monday. Sideways to higher trading is favored.
Initial resistance is at 2.0465. This is followed by 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 seen at 2.0375. Strong support follows at 2.0285. The next level is 2.0225. This is followed by 2.0160. Distant support comes at 2.0090.
Oscillators are rising.
NEAR-TERM: Mixed with upside bias
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss slipped on Monday to return Friday’s gains. The medium-term upmove remains in place but the immediate bias remains mixed.
Immediate support is seen at 1.1755. This is followed by 1.1725 and 1.1695. Below 1.1585, there is distant support at 1.1495.
Initial resistance is between 1.1850. Then there is resistance between 1.1880 and 1.1895. Above 1.1935, distant resistance is at 1.2005.
Oscillators are mixed.
NEAR-TERM: Mixed with downside bias
MEDIUM-TERM: Slightly bullish
LONG-TERM: Bearish