Daily Forex Market Commentary
GFT Daily Forex Market Commentary for November 29, 2006
Forex Market Commentary by Cornelius Luca, Currencies Analyst, GFT
The dollar fell further on Tuesday and the weak US durable goods orders report didn’t help.
Following a brief reprieve, the weakness should continue.
Euro/dollar
Euro/dollar rallied further on Tuesday to a new high for the uptrend. The medium-term outlook clearly remains positive – but the short term is mixed.
Above 1.3220, resistance comes at 1.3270. Next strong resistance is naturally pegged at 1.3370.
Initial support is at 1.3160. Below 1.3100, the pair retains support at 1.3045. Only a close below 1.2980 would signal a significant decline to 1.2860.
Oscillators are rising.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/yen
The dollar/yen is under pressure but remains in an inside range. The medium-term outlook remains negative but in the short-term oversold pair should consolidate.
Below the 50-pip pivot at 115.50, which targets 116.00 and 115.00, dollar/yen has support at 114.20 from another pivot, which targets 113.70 and 114.20.
The pair should be capped at 116.85 by a 50-point pivot, which targets 116.35 and 117.35.
Oscillators are falling.
NEAR-TERM: Mixed
MEDIUM-TERM: Barish
LONG-TERM: Bearish
Sterling/dollar
Sterling/dollar surged on Tuesday to a new 11-month high, and the medium-term outlook remains positive.
Above 1.9550, there is the target of a medium-term bullish flag in the 1.9640 area. Next level is 1.9712.
Initial support comes at 1.9460. Below 1.9370 there is more support at 1.9270 and 1.9250.
Oscillators are rising.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss franc remains under pressure at a 5 ½-month low. The medium-term outlook remains negative.
Below 1.2010, support remains at 1.1921 from a pivot low. There is distant support at 1.1790.
Initial resistance is at 1.2065. Above 1.2135, next levels are at 1.2160 and 1.2200. Further resistance is pegged at 1.2245.
Oscillators are falling.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bearish
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