Forex Market Commentary for October 17, 2007 by Cornelius LucaGFT Daily Market Commentary
The dollar was mixed on Tuesday, up against the euro and the pound on the UK inflation report and down against the yen. The steady ZEW report didn’t help the euro. Keep an eye on euro/yen, as only a break below 164.45 o a close below 164.85 would signal long liquidation.
Euro/dollar
Euro/dollar slipped on Tuesday but made little progress. It should see further sideways trading.
It has initial support at 1.4135. This is followed by 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.
Immediate resistance is at 1.4205. 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.
Oscillators are rising.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/yen
One day after a new two-month high it fell sharply on Tuesday. The upside is still cautiously favored in the medium term but sideways trading is likely here. Key level is 116.85 from another 50-point pivot that targets 116.35 and 117.35.
Below 116.35, strong support comes at 115.50.
Initial resistance is at 117.45. Above 117.95, resistance is seen at 118.25 from a 50-point pivot that targets 117.75 and 118.75.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Slightly bullish
LONG-TERM: Mixed
Sterling/dollar
Sterling/dollar fell sharply on Tuesday after the UK CPI unexpectedly held at 1.8 percent in September from a year earlier, the same as August. Following this shock, sideways trading is favored.
Immediate support is seen at 2.0285. The next level is 2.0225. This is followed by 2.0160. Distant support comes at 2.0090.
Initial resistance is at 2.0375. The next cap is at 2.0465. This is followed by 2.0495. Strong resistance comes at 2.0530.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss made little progress on Tuesday. 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
MEDIUM-TERM: Slightly bullish
LONG-TERM: Bearish