Forex Market Commentary for October 22, 2007 by Cornelius LucaGFT Daily Market Commentary
The dollar fell further after the G7 finance ministers and central bankers said the credit-market problems will slow economic growth and kept mum about the weakness of the dollar. Its weakness should continue. And keep an eye on the sliding carry trades.
Euro/dollar
Euro/dollar edged up to a new high for its lifetime and this process should last longer as the uptrend continues.
Strong resistance is seen between 1.4400 and 1.4420. Above 1.4450, strong resistance is seen only at 1.4580.
Below 1.4280, euro/dollar still has support at 1.4210.
Oscillators are rising.
NEAR-TERM: Slightly bullish
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen sank aggressively last week and this weakness should last amid profit taking on carry trades.
Initial support is at 113.26. Strong support is at 112.90 from a 50-point pivot that targets 113.40 and 112.40.
Above 114.60 there is strong resistance at 115.50 from another 50-point pivot, which targets 115.00 and 116.00.
Oscillators are declining.
NEAR-TERM: Slightly bearish
MEDIUM-TERM: Slightly bullish
LONG-TERM: Mixed
Sterling/dollar
Sterling/dollar fell from a three-month high last week but remains near its recent highs. More information is still needed.
Initial resistance is at 2.0550. Then there is a pivotal high at 2.0654. Distant resistance is now perched at 2.0735.
Immediate support is seen at 2.0465. Next level is at 2.0400.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss fell on Friday and early Monday. The immediate bias is now negative.
Immediate support is at 1.1600. Below 1.1585, there is support at 1.1495.
Initial resistance is at 1.1735. Above 1.1820, distant resistance is at 1.1894.
Oscillators are headed lower.
NEAR-TERM: Slightly bearish
MEDIUM-TERM: Mixed
LONG-TERM: Bearish