Forex Market Commentary for December 3, 2007 by Cornelius LucaGFT Daily Market Commentary
The dollar had another good day versus the European and the yen on Friday. This strength should persist today as well.
Euro/dollar
The overbought euro/dollar sank further on Friday. but got stuck in an inside range on a weekly basis. But the close below the 20-day moving average suggests further losses this week.
Immediate support is at 1.4545. A break below this level would suggest the end of the uptrend. The next level is 1.4515.
Initial resistance is seen at 1.4710. Above 1.4805, strong resistance is seen at 1.4905 and eventually at 1.5060.
Oscillators are declining.
NEAR-TERM: Slightly bearish
MEDIUM-TERM: Mixed
LONG-TERM: Bullish
Dollar/yen
Dollar/yen rallied again and formed a bullish reversal on a weekly basis. An initial pull back is likely for this pair.
Initial support now comes at 110.35 from a 50-point pivot that targets 109.85 and 110.85.
Immediate resistance is at 111.20 Strong resistance is at 111.60 from a 50-point pivot that targets 112.10 and 111.10. This is followed by another 50-point pivot at 112.90.
Oscillators are rising.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bearish
Sterling/dollar
The high-yielding sterling/dollar reversed early gains and broke the bottom of a rising channel. Now, only a break below 2.0530 would warrant further losses.
Below 2.0530, there is support at 2.0455. Distant support is at 2.0355.
Immediate resistance is seen at 2.0660. 2.0730 follows that. Above 2.0833, resistance remains at 2.0875.
Oscillators are mixed.
NEAR-TERM: Mixed with bearish bias
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss made a sharp recovery last week and reversed the losses made the previous two weeks. A bottom in now in place and more strength is likely.
Initial resistance is at 1.1360. Above 1.1400, there is resistance at 1.1530. Distant
Immediate support is at 1.1255. Below 1.1150, support is pegged at 1.1100. The next support is at 1.1025.
Oscillators are rising.
NEAR-TERM: Mixed with bullish bias
MEDIUM-TERM: Bearish
LONG-TERM: Bearish