Forex Market Commentary for October 29, 2007 by Cornelius LucaGFT Daily Market Commentary
The dollar fell further versus the European and commodity currencies but marked time against the yen, amid concerns about the speed of deceleration of the US economy following the subprime mortgage disaster. Enhanced chatter that the US is going to attack Iran’s nuclear capabilities sent oil prices through. The carry trades are alive as well and there is little reason to change this direction.
Euro/dollar
Euro/dollar rallied for the third consecutive week to reach yet a new lifetime high.
Strong resistance is seen at 1.4463. Above it, strong resistance is seen only at 1.4580. Distant resistance is at 1.4665.
Immediate support is at 1.4320. Below 1.4280, euro/dollar still has support at 1.4210.
Oscillators are rising.
NEAR-TERM: Mixed with bullish bias
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen consolidated and got stuck in an inside range. Sideways to lower trading is likely.
Initial support is at 113.85. Below 113.25 there is strong support is at 112.90 from a 50-point pivot that targets 113.40 and 112.40.
Immediate resistance is still in place at 114.60. Above 115.05 there still is strong resistance at 115.50 from another 50-point pivot, which targets 115.00 and 116.00.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Slightly bullish
LONG-TERM: Mixed
Sterling/dollar
Sterling/dollar struggled higher on Friday but broke out of an inside range before closing unchanged. Sideways trading is likely today.
Initial resistance remains in seen at 2.0570. This is followed by 2.0600. Then there is a distant pivotal high at 2.0654.
Immediate support is seen at 2.0470. 2.0435 follows that. Below 2.0395 the next levels are 2.0330 and 2.0260.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss slipped further but remained in an inside range. The immediate bias is mixed to slightly negative.
Immediate support is now seen at 1.1600. Below it, there is distant support at 1.1495.
Initial resistance is at 1.1675. The next levels are 1.1715 and 1.1765. These are followed by 1.1812 from a Fibonacci retracement level. Above this level, distant resistance is at 1.1894.
Oscillators are mixed.
NEAR-TERM: Mixed to slightly bearish
MEDIUM-TERM: Mixed
LONG-TERM: Bearish