Forex Market Commentary for December 31 2007 by Cornelius LucaGFT Daily Market Commentary
The dollar took a beating across the board on Friday, as expected, and this weakness should continue on the last day of 2007 as well. Trading should be spotty at best, so trade only if you must. I wish you the best of luck in 2008!
Euro/dollar
Euro/dollar rallied to a two-week high on Friday as well and this strength should continue on Monday as well. However, today’s move should be mild.
Initial resistance is seen at 1.4770. The next level is 1.4800. Distant resistance follows at 1.4885.
Immediate support is now seen at 1.4635. A break below 1.4570 would suggest a test of 1.4520.
Oscillators are rising.
NEAR-TERM: Slightly bullish
MEDIUM-TERM: Mixed
LONG-TERM: Bullish
Dollar/yen
Dollar/yen fell to a two-week low on Friday. It should now trade sideways at lower levels.
Initial support is seen at 111.60 from a 50-point pivot that targets 112.10 and 111.10. .
Immediate resistance is at 112.90 from a 50-point pivot, which targets 113.40 and 112.40in place at 113.85. This is followed by 114.40.
Oscillators are falling.
NEAR-TERM: Mixed to slightly bearish
MEDIUM-TERM: Mixes
LONG-TERM: Bearish
Sterling/dollar
Sterling/dollar padded Thursday’s gains but the upside is limited.
Initial resistance remains at 2.0020. Above 2.0055, the next one is at 2.0140. Distant resistance now follows at 2.0260.
Immediate support comes at 1.9905. This is followed by 1.9865.
Oscillators are mixed.
NEAR-TERM: Mixed to slightly bullish
MEDIUM-TERM: Bearish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss sank for the third consecutive day on Friday and this pressure should continue today – but a reduced pace.
Immediate support is now seen at 1.1235. Below 1.1160, support is pegged at 1.1100.
Initial resistance comes at 1.1330. Above it, resistance comes at 1.1375, 1.1415 and finally 1.1525.
Oscillators are falling.
NEAR-TERM: Mixed to slightly bearish
MEDIUM-TERM: Bearish
LONG-TERM: Bearish