Forex Market Commentary for December 14, 2007 by Cornelius LucaGFT Daily Market Commentary
Confusion continued to rain in the European and the commodity currencies, as they alternate up and down days. Thursday was the day fir these currencies to decline, while the yen failed co cut a new path. The dollar should slip on Friday.
Euro/dollar
The euro/dollar is still alternating up and down days in roughly the same range. It should edge higher today.
Immediate resistance is now seen at 1.4645. Only a break above 1.4750 would signal the resumption of the upmove. Above this level, strong resistance is seen at 1.4805 and 1.4775.
Initial support comes at 1.4543. 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 consolidated near a five-week high on Thursday. Consolidation is likely today.
Immediate resistance is still seen at 112.55. Strong resistance follows at 112.90 from another 50-point pivot that targets 113.40 and 112.40.
Strong support remains at 111.60 from a 50-point pivot that targets 112.10 and 111.10. Below 110.60 there is support at 110.35 from a 50-point pivot that targets 109.85 and 110.85.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bearish
Sterling/dollar
Sterling/dollar edged lower but remained within recent ranges. Again, following some early weakness, cable should march higher.
Immediate resistance remains at 2.0505. Above it, the next level is at 2.0575. Distant resistance comes at 2.0690.
Initial support is now seen at 2.0335. Below 2.0230, there is distant support at 2.0183.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss rallied to a new high on Thursday before the SNB meeting today. Consolidative trading is likely today, as the upside look limited.
Initial resistance is now seen at 1.1485. Only a break above this tough level would warrant further strength. Above it, there is resistance at 1.1525 and 1.1680.
Immediate supports are at 1.1340 and 1.1310. Below 1.1230, the next levels are 1.1110 and 1.1060.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bearish