Forex Market Commentary for November 19, 2007 by Cornelius LucaGFT Daily Market Commentary
The dollar fell against the European currencies but edged up against the yen, which means the demand for yen crosses has returned. Again, 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 made the expected upmove on Friday but didn’t break any new ground. A sell-off is likely here.
Immediate resistance is at 1.4705. Above 1.4751, resistance is seen at 1.4835.
Initial support is at 1.4610. The next level is 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 Thursday’s losses but didn’t get anywhere fast. Expect mixed trading, as cross trading still rules.
Immediate resistance is at 111.35. Strong resistance follows at 111.60 from a 50-point pivot, which targets 112.10 and 111.10.
Strong support remains 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 recovered from a new 3 1/2-week low as the decline made the expected pause. Another mild bounce is likely before the next move down.
Initial resistance is at 2.0590. Above it there is resistance at 2.0680. Distant resistance looms at 2.0805.
Immediate support is now seen at 2.0450. Below 2.0354, the next level is 2.0315.
Oscillators are mixed.
NEAR-TERM: Slightly bullish
MEDIUM-TERM: Mixed
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss slipped to a new 12 ½-year low, as expected. The oversold currency should edge further down today.
Immediate support is now seen at 1.1160. Below it, support is still pegged at 1.1100. Distant support is at 1.0980.
Initial resistance is at 1.1247. The next level is 1.1280 and 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