Daily forex market commentary
GFT Daily Forex Market Commentary for November 27, 2006
Forex Market Commentary by Cornelius Luca, Currencies Analyst, GFT
The dollar fell sharply on Friday and early Monday and this confirms the start of a much bigger decline. The weakness should last for the rest of today as well.
Euro/dollar
Euro/dollar rallied sharply last Friday and hit a seven-month high. The medium-term outlook clearly remains positive. – and the short term as well.
Initial resistance is now seen at 1.3160. Above 1.3220, resistance comes at 1.3270. Next strong resistance is naturally pegged at 1.3370.
Below 1.3100, the pair has support at 1.3045. Only a close below 1.2980 would signal a significant decline to 1.2860.
Oscillators are rising.
NEAR-TERM: Bullish
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/yen
The dollar/yen fell sharplyon Friday as well, hitting a 2 1/2-month low. The medium-term and the short-term outlook are negative. The pair traded between two Gann levels — 115.50 and 118.25. In the process, dollar/yen formed a head-and-shoulders formation, which targets the 113.30 area. The outlook is negative.
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.
Above 115.95, 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: Bearish
MEDIUM-TERM: Barish
LONG-TERM: Bearish
Sterling/dollar
Sterling/dollar surged last Friday, when it reached an 11-month high, and this turned the medium-term outlook positive.
Above 1.9460, good resistance is at 1.9515. There is a medium-term bullish flag that targets the 1.9640 area. Next level is 1.9712.
Initial support comes at 1.9380. 1.9270 and 1.9250 follow that.
Oscillators are rising.
NEAR-TERM: Bullish
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss franc fell sharply on Friday and hit a 5 ½-month low at 1.2072. The medium-term outlook remains clearly negative.
Below 1.2026, support now comes at 1.1921 from a pivot low. There is distant support at 1.1790.
Initial resistance is at 1.2085. Above 1.2135, next levels are at 1.2160 and 1.2200. Further resistance is pegged at 1.2245.
Oscillators are falling.
NEAR-TERM: Bearish
MEDIUM-TERM: Bearish
LONG-TERM: Bearish
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