Forex Market Commentary for January 9, 2008 by Cornelius LucaGFT Daily Market Commentary
The dollar closed little changed on Tuesday after giving up its gains against the yen and recovering versus the pound. The US currency should consolidate today with risk on the downside.
Euro/dollar
Euro/dollar traded sideways and got stuck in an inside range on Tuesday. Only a break out of these borders would signal a fresh direction.
Immediate support remains at 1.4635. This is followed by 1.4570 and 1.4520. A break below 1.4470 would infer a test of the distant support at 1.4390.
Initial resistance is now seen at 1.4750. Above 1.4780, the next level is 1.4825. Distant resistance follows at 1.4885.
Oscillators are rising.
NEAR-TERM: Mixed
MEDIUM-TERM: Mixed
LONG-TERM: Bullish
Dollar/yen
Dollar/yen made the expected upmove through early afternoon and that gave back its gains. It remains oversold, but I don’t see much upside risk right now. Expect choppy trading dictated by the carry trades.
Immediate resistance is at 109.15 from a 50-point pivot, which targets 109.65 and 108.65. Above 110.05 there is strong resistance at 110.35 from another 50-point pivot that targets 109.85 and 110.85.
Initial support comes at 108.65The next level is 108.25. This is followed by 107.95 from a 50-point pivot that targets 107.45 and 108.45.
Oscillators are falling.
NEAR-TERM: Mixed
MEDIUM-TERM: Mixed to slightly bearish
LONG-TERM: Bearish
Sterling/dollar
News that house prices rose 1.3 percent in December weren’t able to provide anything but fleeing support to sterling on Tuesday and then cable gave up most of its gains. Cable should continue to consolidate at lower levels.
Immediate support comes at 1.9640. Further supports are at 1.9586 and 1.9555. This is followed by 1.9495.
Initial resistance is now at 1.9810. This is followed by 1.9900 and 1.9945.
Oscillators are sliding.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Mixed
Dollar/Swiss franc
Dollar/Swiss failed to pad its gains from Monday and turned slightly lower on the day. The overall pressure should continue even though the pair remains oversold.
Immediate support is seen at 1.1100. The next level is 1.1020. Below 1.0890 from a pivot low, a distant support is now pegged at 1.0760.
Strong resistance is at 1.1190. Above 1.1250, distant resistance comes at 1.1330.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bearish