Forex Market Commentary for December 5, 2007 by Cornelius LucaGFT Daily Market Commentary
The dollar was mixed on Tuesday, as the carry trades came under slight selling pressure. It closed up against the GBP and the commodity currencies, but down versus the JPY, EUR and CHF. The US economic calendar features the non-manufacturing ISM, bib-farm productivity and the factory orders reports. The same pattern is likely today.
Euro/dollar
The euro/dollar climbed up on Tuesday as well, but even though it recovered 50% of the losses made since November 23, it remained stuck in an inside range. But the initial risk is still higher.
Immediate resistance is now seen at 1.4795. Above 1.4835, strong resistance is seen at 1.4905.
Initial support is at 1.4705. A break below 1.4620 would suggest the end of the uptrend. The next level is 1.4545.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Mixed
LONG-TERM: Bullish
Dollar/yen
Dollar/yen also fell on Tuesday, as expected, and barely exited from an inside range. Another mild pullback is likely in the short term.
Initial support now comes at 109.30. Further support is at 108.85. Distant support is at 108.15.
Immediate resistance is at 110.35 from a 50-point pivot that targets 109.85 and 110.85111.00. Strong resistance is at 111.23 and then at 111.60 from a 50-point pivot that targets 112.10 and 111.10.
Oscillators are mixed.
NEAR-TERM: Mixed with bearish bias
MEDIUM-TERM: Bearish
LONG-TERM: Bearish
Sterling/dollar
The high-yielding sterling/dollar held below the 20-day moving average and made a move down, as expected. A bounce is likely today.
Immediate resistance is seen at 2.0660. 2.0730 follows that. Above 2.0833, resistance remains at 2.0875.
Initial support is at 2.0525. Below it, there is distant support at 2.0455.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss fell on Tuesday as well but remained stuck in an inside range. The initial risk is down, but strength is likely in the medium term.
Immediate support is at 1.1110. Below 1.1060, support is pegged at 1.1025. The next support is at 1.0985.
Initial resistance is at 1.1225. Above 1.1330, there is resistance at 1.1400.
Oscillators are mixed.
NEAR-TERM: Mixed with bearish bias
MEDIUM-TERM: Bearish
LONG-TERM: Bearish