Forex Market Commentary for November 15, 2007 by Cornelius LucaGFT Daily Market Commentary
The dollar slipped against the euro and franc but rallied versus the pound and the yen. The pound fell after the BoE inferred rate cuts next year. Expect choppy trading today.
Euro/dollar
Euro/dollar challenged its record high before giving up some of the gains. After another recovery today the selloff should resume as the pair is overbought.
Immediate resistance is at 1.4751. Above it, resistance is seen at 1.4835.
Initial support is at 1.4590. This is followed by 1.4520 and 1.4470. Below 1.4415, euro/dollar has distant support comes at 1.4290.
Oscillators are mixed.
NEAR-TERM: Slightly bullish
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen made another recovery on Wednesday, but the pace decelerated. Expect mixed trading but the risk here remains that a bullish engulfing formation is already in place.
Immediate resistance is at 111.60 from a 50-point pivot, which targets 112.10 and 111.10.
Initial support now comes at 111.000. Strong support is at 110.35 from a 50-point pivot that targets 109.85 and 110.85. Distant support follows at 109.15 from another 50-point pivot that targets 109.65 and 108.65.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Mixed
Sterling/dollar
Sterling/dollar fell to a nearly three-week low on Wednesday after the BoE warned it might cut rates next year. Next year is clearly not today, so a bounce is now likely.
Initial resistance is at 2.0587. This is followed by 2.0680. Further resistance is at 2.0805.
Immediate support is now seen at 2.0455 Below 2.0410, the next level is at 2.0315.
Oscillators are mixed.
NEAR-TERM: Slightly bullish
MEDIUM-TERM: Mixed
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss sank to a new low for the downtrend on Wednesday before trimming losses. The oversold currency should edge further down today.
Immediate support is at 1.1177. Below it, support is now pegged at 1.1100. Distant support is at 1.0980.
Initial resistance is at 1.1290. This is followed by 1.1335. Above 1.1400, there is resistance at 1.1530.
Oscillators are falling.
NEAR-TERM: Slightly bearish
MEDIUM-TERM: Mixed
LONG-TERM: Bearish