Forex Market Commentary for January 17, 2008 by Cornelius LucaGFT Daily Market Commentary
The dollar only edged lower versus the majors on Thursday despite another batch of soft US economic data and further weakness in the equity markets. The most damaging was the Philly Fed, which registered exceptional contraction. The dollar should incur selling pressure today.
Euro/dollar
Euro/dollar made a mild recovery from a two-week low on Thursday. Sideways to higher trading is likely.
Initial resistance is now seen at 1.4670. The next level is 1.4770. Above 1.4870 there are pivotal highs at 1.49 90 and 1.4966.
Immediate support is at 1.4580. .4525 follows this. Distant support comes at 1.4440.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen slipped within an inside range but remained well above the 2 ½-year low that was coined on Wednesday. Mixed trading remains favored.
Immediate support is seen at 106.20. The next level is 105.93. Below 105.50 there is distant support at 104.25.
Above 106.90, strong resistance comes at 107.95 from a 50-point pivot that targets 107.45 and 108.45. Distant resistance follows at 109.15 from a 50-point pivot, which targets 109.65 and 108.65.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bearish
Sterling/dollar
Sterling/dollar broke out from an inside range and recovered to a nine-day high on Thursday amid ongoing long liquidation of euro/sterling. Cable should consolidate today.
Strong resistance is now seen at 1.9800. This is followed by 1.9870. Distant resistance is at 1.9970.
Immediate support is 1.9635. The next level is 1.9565. This is followed by 1.9525. Below 1.9484, strong support now comes at 1.9430.
Oscillators are mixed.
NEAR-TERM: Mixed with upside bias
MEDIUM-TERM: Bearish
LONG-TERM: Mixed
Dollar/Swiss franc
Dollar/Swiss gave back early gains that took it to a one-week high. There still is upside risk, as the pair remains oversold.
Initial resistance is seen at 1.1070. The next level is 1.1125. Strong resistance remains at 1.1190.
Immediate support is now seen at 1.0950. Below the pivot low at 1.0840, a distant support is now pegged at 1.0760.
Oscillators are mixed.
NEAR-TERM: Mixed with upside risk
MEDIUM-TERM: Bearish
LONG-TERM: Bearish