Daily Forex Market Commentary
GFT Daily Forex Market Commentary for January 23, 2007
Forex Market Commentary by Cornelius Luca, Currencies Analyst, GFT
The dollar climbed up against the yen, slipped versus the pound and marked time again against the euro and the franc. Once again, the market needs fresh information. Until then, the overbought the European currencies/yen crosses and the oversold euro/sterling will continue to rule.
Euro/dollar
The euro/dollar traded sideways and in an inside range after hitting an eight-day high on Friday. It should attempt consolidate today as well, and only a break above 1.3020 would rejuvenate the uptrend. This is unlikely.
Initial resistance remains at 1.3000. Above 1.3020, euro/dollar has resistance at 1.3060 and 1.3090. Next level is 1.3130. Distant resistance is at 1.3240.
Below 1.2925, the pair has support at 1.2880 and retains strong support at 1.2820. A close below this level would signal a further significant decline to 1.2760.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen climbed up on Monday to a new high for its uptrend. The overbought pair still needs to display any signs of a corrective decline; until then, the pound/yen cross remains in good shape.
Above 122.10, dollar/yen faces resistance at 122.50 from a 50-point pivot, which targets 122.00 and 123.00. The pair broke the resistance at 121.05, and reached the upside target at 121.55.
Initial support is at 121.30. Good support follows at 121.05 from a 50-pip pivot that targets 120.55 and 121.55. Further support is seen at 120.15. Strong support follows at 119.65 from a 50-pip pivot, which targets 120.15 and 119.15.
Oscillators are rising.
NEAR-TERM: Slightly Bullish
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Sterling/dollar
Sterling/dollar struggled to a new high for its upmove on Monday. The pair is overbought, but hold on to long Cable positions until there are clear signs of a correction.
Immediate resistance remains at 1.9846 from a pivotal high. If it breaks above it, then the pair will challenge the further resistance at 1.9867. Distant resistance is at 2.0000.
Below 1.9710, support is still seen at 1.9635. Distant support is now seen at 1.9570.
Oscillators are rising.
NEAR-TERM: Bullish
MEDIUM-TERM: Mixed
LONG-TERM: Mixed
Dollar/Swiss franc
Dollar/Swiss franc trotted in place on Monday as well and closed again virtually unchanged. The pair should consolidate further and try to break out of the sideways phase. The downside is favored.
Immediate support remains at 1.2430. That is followed by 1.2385.
Initial resistance is at 1.2546. Above it, resistance remains at 1.2660 from the target of a bull flag.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Mixed
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