Forex Market Commentary for January 21, 2008 by Cornelius LucaGFT Daily Market Commentary
The dollar made little general progress on Friday amid mixed data, sliding equities and an economic stimulus package that failed to satisfy all. Only the pound sank on weak UK data. The dollar should consolidate today during the holiday, with an upside bias versus the European currencies.
Euro/dollar
Euro/dollar traded sideways in an inside range and closed little changed on Friday. Mixed to lower trading is likely today.
Immediate support is at 1.4525. 1.4480 follows this. Distant support comes at 1.4440.
Initial resistance is at 1.4616. This is followed by at 1.4670. The next level is 1.4770. Above 1.4870 there are pivotal highs at 1.4990 and 1.4966.
Oscillators are declining.
NEAR-TERM: Mixed with downside risk
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen marked time 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 still 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 remains weak after sinking to a one-week low on Friday. Cable should consolidate today, but the risk is on the downside.
Immediate support is seen at 1.9505. Below 1.9484, strong support now comes at 1.9430. Distant support is at 1.9295
Initial resistance is at 1.9585. The next level is at 1.9680. Strong resistance remains at 1.9800. This is followed by 1.9870. Distant resistance is at 1.9970.
Oscillators are mixed.
NEAR-TERM: Mixed with downside risk
MEDIUM-TERM: Bearish
LONG-TERM: Mixed
Dollar/Swiss franc
Dollar/Swiss consolidated in an inside range on Friday. There still is upside risk, as the pair remains oversold.
Initial resistance is still seen at 1.1070. The next level is 1.1125. Strong resistance remains at 1.1190.
Below 1.1990, support is seen at 1.0950. Then, there is a pivot low at 1.0840, while a distant support is now pegged at 1.0760.
Oscillators are rising.
NEAR-TERM: Mixed with upside risk
MEDIUM-TERM: Bearish
LONG-TERM: Bearish