Forex Market Commentary for October 30, 2007 by Cornelius LucaGFT Daily Market Commentary
The dollar fell further versus the European and commodity currencies while sinking against the yen as traders adjusted positions ahead of the FOMC meeting on Wednesday. The dollar is oversold versus the European currencies but buy it only on a confirmation.
Euro/dollar
Euro/dollar on Monday rallied to a new lifetime high. It is very overbought but sell it only on a confirmation.
Strong resistance is still in place at 1.4463. Above it, strong resistance is seen only at 1.4580. Distant resistance is at 1.4665.
Immediate support is at 1.4380. This is followed by 1.4320. Below 1.4280, euro/dollar still has support at 1.4210.
Oscillators are rising.
NEAR-TERM: Mixed with downside risk
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen made an uncharacteristic recovery on Monday but didn’t break any new ground. Sideways to lower trading is likely.
Immediate resistance comes at 114.70. Above 115.05 there still is strong resistance at 115.50 from another 50-point pivot, which targets 115.00 and 116.00.
Initial support is at 114.05. Below 113.25 there is strong support is at 112.90 from a 50-point pivot that targets 113.40 and 112.40.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Slightly bullish
LONG-TERM: Mixed
Sterling/dollar
Sterling/dollar was the strongest of the European currencies and closed at a new high for its uptrend. Some profit taking is likely for the overbought pair but sell it only on a confirmation.
Initial resistance is now seen from a pivotal high at 2.0654. This is followed by 2.0727. Then there is distant resistance at 2.0800.
Immediate support comes at 2.0590. This is followed by 2.0520 and 2.0470. Further support lies at 2.0435.
Oscillators are rising.
NEAR-TERM: Mixed with downside risk
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss spiked lower on Monday but closed unchanged and remained in an inside range. The immediate bias is mixed to slightly negative.
Immediate support is still 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