Forex Market Commentary for November 9, 2007 by Cornelius LucaGFT Daily Market Commentary
The dollar fell versus the European currencies on Thursday after Fed Chairman Bernanke warned the housing market problem should worsen and that the Fed expected the GDP to slow noticeably in the fourth quarter. The dollar should now encounter more selling pressure. The US trade should be ignored.
Euro/dollar
Euro/dollar advanced further on Thursday. More upmove is likely, but the pace should slow down.
Above 1.4737, resistance is now seen at 1.4755. Distant resistance is seen at 1.4890.
Initial support is at 1.4773 and this is followed by 1.4615 and 1.4580. Below 1.4545, euro/dollar has 1.4490. Distant support comes at 1.4415.
Oscillators are rising.
NEAR-TERM: Slightly bullish
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen recovered from a nearly three-month low on Thursday to close flat. Choppy trading should persist today.
Initial support comes at 112.12. The next level is 111.60 from a 50-point pivot that targets 112.10 and 111.10.
Immediate resistance is at 112.90 from a 50-point pivot that targets 113.40 and 112.40. Distant resistance is at 114.20 from a 50-point pivot that targets 113.70 and 114.70.
Oscillators are falling.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Mixed
Sterling/dollar
Sterling/dollar surged to a new high for the uptrend. Some profit taking was likely, but this is no longer on the table, short of a massive long liquidation.
Initial resistance is at 2.1117. Above is there still is distant resistance at 2.1220.
Immediate support is seen at 2.0975. The next support lies at 2.0860 and this is followed by 2.0770 and 2.0740.
Oscillators are rising.
NEAR-TERM: Slightly bullish
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss slipped to a new low for the downtrend. The oversold currency should see more weakness today, but at a reduced pace.
Below 1.1210, support is seen at 1.1180. Distant support is at 1.1100.
Initial resistance is seen at 1.1280. This is followed by 1.1340 Above 1.1410, the next level is 1.1520.
Oscillators are falling.
NEAR-TERM: Slightly bearish
MEDIUM-TERM: Mixed
LONG-TERM: Bearish