Forex Market Commentary for November 16, 2007 by Cornelius LucaGFT Daily Market Commentary
The dollar went sideways against the euro and franc but rallied versus the pound and fell against the yen, which makes the GBP/JPY a nice cross to sell. Expect choppy trading today amid nervous oil and stock trading and under the weight of the pressure of the subprime mortgage crisis.
Euro/dollar
Euro/dollar slipped on Thursday but remained in an inside range. After some mild bounce today a selloff should occur.
Immediate resistance is at 1.4705. Above 1.4751, resistance is seen at 1.4835.
Initial support is at 1.4550. 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: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen reversed about half of the gains made on Tuesday and Wednesday. Expect mixed trading, as cross trading rules.
Initial support now comes 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.
Immediate resistance is at 111.20. Strong resistance follows at 111.60 from a 50-point pivot, which targets 112.10 and 111.10.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Mixed
Sterling/dollar
Sterling/dollar fell to a 3 1/2-week low on Thursday but the decline should pause. Thus, a bounce is now likely.
Initial resistance is at 2.0515. Above 2.0590 there is resistance at 2.0680. Distant resistance looms at 2.0805.
Immediate support is now seen at 2.0420. Below it, 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 edged lower in an inside range after sinking to a 12 ½-year low on Wednesday. The oversold currency should edge further down today.
Immediate support is still seen at 1.1177. Below it, support is now pegged at 1.1100. Distant support is at 1.0980.
Initial resistance is at 1.1280. 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