Daily Forex Market Commentary
GFT Daily Forex Market Commentary for December 27, 2006
Forex Market Commentary by Cornelius Luca, Currencies Analyst, GFT
The dollar strengthened on Tuesday during the Boxing Day and should attempt to pad its gains once Europe and Canada return to the market. Volume should remain light.
Euro/dollar
The euro/dollar fell further on Tuesday after getting hit on Friday. The pair should encounter more pressure today.
It should test the support at 1.3075 and a close below it would accelerate the decline. Euro/dollar then has support at 1.3030 and 1.2985.
Immediate resistance is at 1.3135 and that is followed by 1.3165. Above 1.3210, euro/dollar has some resistance at 1.3260.
Oscillators are mixed.
NEAR-TERM: Mixed with bearish bias
MEDIUM-TERM: Mixed with bullish bias
LONG-TERM: Bullish
Dollar/yen
Dollar/yen rallied to a two-month high on Tuesday, in line with the bullish reversal signal mentioned here last week. The upmove should continue.
The pair will challenge the strong 50-pip pivot at 119.65, which targets 120.15 and 119.15. Distant resistance follows at 121.05.
Below 118.65, dollar/yen has support at 118.25 from another 50-point pivot that targets 117.75 and 118.75.
Oscillators are rising.
NEAR-TERM: Slightly bullish
MEDIUM-TERM: Bullish
LONG-TERM: Bearish
Sterling/dollar
Sterling/dollar fell on Tuesday and r should try to dip further today.
Initial support comes at 1.9510. If cable can penetrate below it, then look for another decline to 1.9465 and even 1.9410.
Immediate resistance is at 1.9590. That is followed by 1.9630. Above 1.9685, the pair has resistance at 1.9730.
Oscillators are declining.
NEAR-TERM: Mixed with bearish bias
MEDIUM-TERM: Mixed with bullish bias
LONG-TERM: Mixed
Dollar/Swiss franc
Dollar/Swiss franc rallied on Tuesday and it should attempt to advance further today.
Strong resistance is at 1.2270. Next level is at 1.2315. Only a close above this level would signal a more sustained recovery.
Immediate support is at 1.2120. That’s followed by 1.2050.
Oscillators are rising.
NEAR-TERM: Mixed with bullish bias
MEDIUM-TERM: Mixed with bearish bias
LONG-TERM: Mixed
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