Forex Market Commentary for October 31, 2007 by Cornelius LucaGFT Daily Market Commentary
The dollar fell further versus the European on Tuesday while trading sideways against the yen. The market is apprehensive ahead of the FOMC meeting today at 14:15 ET. The dollar remains oversold versus the European currencies but, once again, buy it only on a confirmation.
Euro/dollar
Euro/dollar on Monday struggled to yet another lifetime high. It is very overbought but sell it only on a confirmation.
Strong resistance still remains 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 consolidated and closed virtually unchanged on Tuesday. Sideways to lower trading remains likely.
Immediate resistance comes at 115.05. Above it there still is strong resistance at 115.50 from another 50-point pivot, which targets 115.00 and 116.00.
Initial support is at 114.20. 113.75 follow that. 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 rallied to a new 26-year high on Wednesday. Some profit taking may be due for the overbought pair, but sell it only on a confirmation.
Initial resistance is now seen from the new pivotal high at 2.0703. This is followed by 2.0727. Then there is distant resistance at 2.0800.
Immediate support comes at 2.0640. Below 2.0565 there is support at 2.0520 and 2.0470. Further support lies at 2.0435.
Oscillators are rising.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss broke out of an inside range on its way to a new 2 ½-year low. The immediate bias is mixed to slightly negative.
Immediate support is now seen at 1.1545. Below it, there is support at 1.1495.
Initial resistance is at 1.1620. Above 1.1675, the next levels are 1.1715 and 1.1765. These are followed by 1.1812 from a Fibonacci retracement level.
Oscillators are mixed.
NEAR-TERM: Mixed to slightly bearish
MEDIUM-TERM: Mixed
LONG-TERM: Bearish