Forex Market Commentary for October 18, 2007 by Cornelius LucaGFT Daily Market Commentary
The dollar closed down across the board on Wednesday while the markets continue to lack direction. Following some recovery at least early on Thursday, the dollar weakness should resume.
Euro/dollar
Euro/dollar has been alternating up and down days for fours days. It should see further sideways trading with the downside mildly favored today.
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.
It has initial support at 1.4160. 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.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen trimmed most of its losses after hitting a two-week low. Further sideways trading is likely here and the key level remains 116.85 from another 50-point pivot that targets 116.35 and 117.35.
Below 116.15, 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 recovered Tuesday’s losses s the market lacks direction. Sideways trading remains favored.
Initial resistance is at 2.0435. The next cap is at 2.0465. This is followed by 2.0495. Strong resistance comes at 2.0530.
Immediate support comes at 2.0335. Below 2.0285 the next level is 2.0225. This is followed by 2.0160. Distant support comes at 2.0090.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss fell on Wednesday but remains in an inside range. The medium-term upmove remains in place but the immediate bias remains mixed.
Initial resistance is at 1.1850. Then there is resistance between 1.1880 and 1.1895. Above 1.1935, distant resistance is at 1.2005.
Immediate support is seen at 1.1775. This is followed by 1.1725 and 1.1695. Below 1.1585, there is distant support at 1.1495.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Slightly bullish
LONG-TERM: Bearish