Daily Forex Market Commentary
One day after plummeting, the dollar consolidated versus most of the majors and even posted a mild recovery versus the Swiss franc. The Asian and European traders will feel lonely today, as the US markets are closed for the Independence Day holiday.
Euro/dollar consolidated near the high for the uptrend. There should be only nominal trading today, but the medium-term outlook is positive.
Immediate resistance is seen at 1.3685. A break above this level would signal another aggressive attack on the upside to 1.3750. Distant resistance looms at 1.3810.
Initial support is at 1.3595. Next levels are 1.3563, 1.3505, 1.3480 and 1.3440.
Oscillators are rising.
Dollar/yen treaded water on Tuesday but held in the vicinity of the nearly three-week low that was reached on Monday. It should attempt to rally today after getting support from the trendline.
Key support remains at 122.50 from another 50-point pivot, which targets 122.00 and 123.00.
Immediate resistance is at 123.00. Next level is 123.55. Above it, strong resistance is seen from a 50-point pivot at 124.00 that targets 123.50 and 124.50.
Oscillators are mixed.
NEAR-TERM: Mixed to slightly higher
Sterling/dollar coined a marginally new 26-year high on Tuesday. The outlook is bullish ahead of the rate hike on Thursday.
Above 2.0195, resistance is still seen at 2.0250 and 2.0315.
Immediate support is seen at 2.0135. Only a break below 2.0020 on a closing basis would signal the likely end of the upmove, but this is unlikely. In that case youâ€™d have to look for the further support at 1.9910.
Oscillators are rising.
Dollar/Swiss franc recovered about half of the losses incurred on Monday. The medium-term outlook is bearish.
Initial resistance is at 1.2190. Next level is 1.2250. Distant resistance is at 1.2310.
Immediate support is still seen at 1.2100. Strong supports follow soon at 1.2065 and 1.2030.
Oscillators are falling.
DISCLAIMER: This forum and the information provided here should not be relied on as a substitute for extensive independent research before making your investment decisions. Global Forex Trading is merely providing this column for your general information. The views of the author are not necessarily those of Global Forex Trading, its owners, officers, agents or employees. In addition, any projections or views of the market provided by the author may not prove to be accurate. Global Forex Trading and Cornelius Luca will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained in this column. Global Forex Trading and Cornelius Luca do not render investment, legal, accounting, tax, or other professional advice. If investment, legal, tax, or other expert assistance is required, the services of a competent professional should be sought.