Daily Forex Market Commentary
The dollar surged in thin trading
on Good Friday after the release of the US non-farm payrolls report, and the
strength was in line with expectations. On Monday the European markets remain closed and the risk for the dollar remains on the upside.
Euro/dollar
Euro/dollar made a bearish reversal formation on Friday, so more weakness is expected for the overbought pair.
Immediate support comes at 1.3330. The next levels are 1.3295 and 1.3255. Below 1.3225, support remains at 1.3200.
Initial resistance remains at 1.3400. Next levels are 1.3440 and 1.3475.
Oscillators are mixed.
NEAR-TERM: Mixed with bearish bias
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen rallied to a six-week high on Friday and more strength should be seen.
Initial resistance is at 119.65 from another 50-point pivot that targets 119.15 and 120.15. Above 120.75, distant resistance now comes at 121.05 from another 50-point pivot.
Below 119.15 there is support at 118.75. Strong support remains at 118.25 from a 50-point pivot that targets 117.75 and 118.75.
Oscillators are rising.
NEAR-TERM: Mixed with bullish bias
MEDIUM-TERM: Slightly bullish
LONG-TERM: Bullish
Sterling/dollar
Sterling/dollar fell to a one-week low on Friday. The slide alleviated its short-term overbought condition. The pair must break below 1.9625 if the decline is to continue.
If 1.9625 gives way, look for support at 1.9595. Strong support follows at 1.9545. Next level is at 1.9500.
Initial resistance is at 1.9680. If this level breaks, the pound would likely take another swing at the pivotal 1.9725 level.
Oscillators are declining.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Mixed
Dollar/Swiss franc
Dollar/Swiss franc reversed Thursday’s losses but remained in an inside range for a third consecutive week.
Initial resistance comes at 1.2240. Above 1.2370, strong resistance comes at 1.2400. Above
Immediate support is now seen at 1.2140. Below 1.2080 there is a key level at 1.2050. Then below 1.2030, dollar/Swiss franc has strong support at 1.2000.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Mixed
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.