Forex Market Commentary for December 26, 2007 by Cornelius LucaGFT Daily Market Commentary
The dollar was generally unchanged on Tuesday but managed to give back gains versus the pound on Christmas. With Europe still closed today, expect limited trading through Thursday.
Euro/dollar
Euro/dollar has been flat during the Christmas week. Trading should be quiet.
Initial resistance is still seen at 1.4455. Above it the next levels are 1.4490 and 1.4525.
Immediate support remains at 1.4330. A break below 1.4290 would suggest a test of 1.4260. Euro/dollar then has good support at 1.4165.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Mixed
LONG-TERM: Bullish
Dollar/yen
Dollar/yen did nothing after rallying to a 1 ½-month high on Friday. Expect choppy trading today.
Immediate resistance is 114.20. The next level is 115.00.
Initial support now comes at 113.60. Strong support follows from a 50-point pivot at 112.90, which targets 113.40 and 112.40.
Oscillators are rising.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bearish
Sterling/dollar
Sterling/dollar recovered from a new four-month low on Thursday. The downside remains favored in the medium-term and there is a medium-term bearish flag that targets 1.9650.
Immediate support is now seen at 1.9700. This is followed by 1.9680 and 1.9650.
Initial resistance is at 1.9840. The next one is at 1.9960. Distant resistance now follows at 2.0055.
Oscillators are declining.
NEAR-TERM: Slightly bearish
MEDIUM-TERM: Bearish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss consolidated quietly so far this week. Its uptrend still looks good but a close above the 1.1610 area is needed to signal further strength.
Initial resistance remains at 1.1610. Above it, resistance comes at 1.1710 and 1.1750.
Immediate support is now seen at 1.1530. This is followed by 1.1480. The next level is 1.1450.
Oscillators are rising.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bearish