Daily forex market commentary
Daily Forex Market Commentary for November 10, 2006
Forex Market Commentary by Cornelius Luca, Currencies Analyst, GFT
The dollar was hit on Thursday after some soft data on consumer sentiment, talk of China diversifying its reserves and concern that the political changes in the US may destabilize the economy. The dollar is on significant supports here, but the downside is favored; conversely, its inability to fall quickly would likely trigger a one-way up Friday.
Euro/dollar
Euro/dollar burst out from an inside range on its way to a two-month high. It should attempt to extend its upside.
Resistance comes at 1.2878. Next levels are at 1.2925 and 1.2935. Distant resistance is at 1.2980.
Initial support is at 1.2820. Strong support only comes at 1.2760. Next level is at 1.2750. If this level breaks, then expect the euro/dollar to challenge 1.2670.
Oscillators are rising
NEAR-TERM: Mixed with bullish bias
MEDIUM-TERM: Bearish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen was torpedoed from a high of 118.58 by the Chinese comments and closed with only small gains. Expect further downside pressure.
Initial support is at 117.25. Dollar/yen still has distant support is at 116.85 by a 50-point pivot, which targets 116.35 and 117.35.
Above 117.75, there is resistance from the the key 118.25 50-point pivot that targets 117.75 and 118.75. Strong resistance remains at 119.65 from a 50-point pivot that targets 119.15 and 120.15. If the defense of the KO options at 120 is somehow surpassed, expect heavy hunting for stop-loss orders. Above 120.15, resistance is seen at 120.50.
Oscillators are mixed
NEAR-TERM: Slightly bearish
MEDIUM-TERM: Slightly bullish
LONG-TERM: Bearish
Sterling/dollar
Sterling/dollar traded again sideways and in an inside range and closed vitually unchanged on Thursday as well. The market ignored news that the Bank of England hiked rates. It should attempt to advance today,
Above 1.9134 there is strong resistance at 1.9205. Distant resistance is seen at 1.9222.
Immediate support is at 1.9050. Next big level is at 1.9000. That is followed by a pivot low at 1.8950. Further support is pegged at 1.8910. That is followed by 1.8850.
Oscillators are mixed.
NEAR-TERM: Slightly bullish
MEDIUM-TERM: Slightly bearish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss sank on Thursday and broke out of an inside range. It closed on the weak side and againt the support of a trendline. This line at 1.2410 broke but the pair must close below it to confirm the weakness.
The pair has support at 1.2354. Distant support now comes at 1.2290 and 1.2224.
Initial resistance is at 1.2410. Next area is between 1.2470 and 1.2480. Above 1.2530, the pair has resistance at 1.2585. Distant resistance is at 1.2640.
Oscillators are declining.
NEAR-TERM: Slightly bearish
MEDIUM-TERM: Mixed to slightly bullish
LONG-TERM: Bearish
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