Forex Market Commentary for December 7, 2007 by Cornelius LucaGFT Daily Market Commentary
The dollar rallied across the board on Wednesday. The pound collapsed on Wednesday on expectations for a rate cut today. UK house prices fell 1.1% percent t\ in November, according to a report by HBOS. The dollar should pad its gains here, but choppy trading is likely.
Euro/dollar
The euro/dollar broke out from an inside range on its way to the lowest level since November 16. The risk is on the downside, as the uptrend seems to be over.
Initial support is at 1.4530. A break below it would suggest a test of 1.4445.
Immediate resistance is now seen at 1.4665. Above 1.4720, strong resistance is seen at 1.4770.
Oscillators are mixed.
NEAR-TERM: Slightly bearish
MEDIUM-TERM: Mixed
LONG-TERM: Bullish
Dollar/yen
Dollar/yen rallied on Wednesday, recouping most of the losses made earlier in the week, but the immediate outlook remains mixed.
Immediate resistance is at 111.23. Strong resistance is at 111.60 from a 50-point pivot that targets 112.10 and 111.10.
Initial support now comes at 110.35 from a 50-point pivot that targets 109.85 and 110.85111.00.109.30. Further support is at 108.85. Distant support is at 108.15.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bearish
Sterling/dollar
Sterling/dollar collapsed to a two-month low following the weak economic data. More weakness is likely as the market is looking for a rate cut today.
Initial support is at 2.0230. Below 2.0185, there is distant support at 2.0025.
Immediate resistance is seen at 2.0365. The next cap is at 2.0410. Above 2.0492, resistance comes only at 2.0585.
Oscillators are falling.
NEAR-TERM: Bearish
MEDIUM-TERM: Bearish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss looked a lot like dollar/yen on Wednesday, when it rallied enough to erase most of the losses inflicted earlier in the week. The initial risk is now slightly higher.
Initial resistance is at 1.1330. Above 1.1400, there is resistance at 1.1525.
Immediate support is at 1.1230. The next level is 1.1110. Below 1.1060, support is pegged at 1.1025.
Oscillators are mixed.
NEAR-TERM: Mixed with bullish bias
MEDIUM-TERM: Bearish
LONG-TERM: Bearish