Forex Market Commentary for October 12, 2007 by Cornelius LucaGFT Daily Market Commentary
As expected, the yen crosses remain in demand and this pattern should continue. The only exception was the pound, which got clobbered by the weak UK data.
Euro/dollar
Euro/dollar climbed for a third day on Thursday as is now threatening its all-time highs. This strength is in line with the medium-term uptrend, but Friday should see at least a brief decline.
The next big resistance is at 1.4286 from this all-time high. Above 1.4316, strong resistance is seen only at 1.4400.
Euro/dollar has initial support at 1.4180. This is followed by 1.4115. Further supports are at 1.4060 and 1.4000. Only a break below 1.3965 would confirm that a peak is in place.
Oscillators are rising.
NEAR-TERM: Mixed with upside bias
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen rallied to a two-month high on Thursday. The upside is still cautiously favored in the medium term.
Above 117.90, resistance is now seen at 118.25 from a 50-point pivot that targets 117.75 and 118.75.
Strong support comes at 117.10. Strong support is at 116.85 from another 50-point pivot that targets 116.35 and 117.35.
Oscillators are mixed.
NEAR-TERM: Mixed to slightly bullish
MEDIUM-TERM: Slightly bullish
LONG-TERM: Mixed
Sterling/dollar
Sterling/dollar sank on Thursday under the increasing weight of the UK housing threat. The uptrend remains in place, but in the short-term the downside is favored.
Immediate support is now seen at 2.0260. The next level is 2.0395. This is followed by 2.0350. Distant support comes at 2.0275.
Initial resistance is at 2.0400. This is followed by 2.0495. Strong resistance comes at 2.0530. If this level gives way, look for a test of the pivotal high at 2.0654.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss recovered from a three-day low on Thursday. The medium-term upmove remains in place but the immediate bias is still mixed.
Initial resistance is at 1.1865. Above 1.1935, distant resistance is at 1.2005.
Immediate support remains at 1.1790. This is followed by 1.1740 and 1.1695. Below 1.1585, there is distant support at 1.1495.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Slightly bullish
LONG-TERM: Bearish