Forex Market Commentary for December 10, 2007 by Cornelius LucaGFT Daily Market Commentary
The non-farm payrolls report was mixed and the dollar was exceptionally well behaved. The market should tread water today and part of Tuesday ahead of the FOMC meeting. The market is pricing in a 25-bp rate cut on Tuesday.
Euro/dollar
The euro/dollar closed flat for two days in a row and the direction remains fuzzy. Choppy trading is likely today.
Immediate resistance is still seen at 1.4665. Above 1.4720, strong resistance is seen at 1.4770.
Initial support remains at 1.4585. A break below 1.4530 would suggest a test of 1.4445.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Mixed
LONG-TERM: Bullish
Dollar/yen
Dollar/yen marched slightly higher on Friday, but the immediate outlook remains mixed. Key support is at 111.60 from a 50-point pivot that targets 112.10 and 111.10.
Immediate resistance is now at 112.10. The next level is 112.85.
Initial support now comes at 111.25. Below 110.60 there is support at 110.35 from a 50-point pivot that targets 109.85 and 110.85111.00.109.30.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bearish
Sterling/dollar
Sterling/dollar closed flat for two days and more sideways trading is likely today.
Initial support remains at 2.0230. Below 2.0185, there is distant support at 2.0025.
Immediate resistance is still seen at 2.0365. The next cap is at 2.0410. Above 2.0492, resistance comes only at 2.0585.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss closed virtually unchanged on Friday as well. Unsettled trading should continue today as well.
Initial resistance is at 1.1350. Above 1.1400, there is resistance at 1.1525.
Immediate supports are at 1.1265 and 1.1230. The next level is 1.1110. Below 1.1060, support is pegged at 1.1025.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bearish