Daily forex market commentary
Forex Market Commentary for October 23, 2006
GFT Daily Forex Market Commentary by Cornelius Luca
The dollar traded sideways on Friday versus the euro and the franc, as the market consolidated after the Thursday selloff. Only dollar/yen made a discernable recovery, while cable rallied further on strong data. The dollar should consolidate today.
Euro/dollar
Euro/dollar consolidated on Friday and should do the same today.
Above 1.2650, resistance is seen at 1.2710. Strong resistance is then seen at 1.2765, but the pair should not challenge it.
If 1.2650 holds on a closing basis, expect the euro/dollar to challenge 1.2560. A break below 1.2490 would lead to a test of the pivotal low at 1.2460.
Oscillators are declining.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen recovered more than half of Thursday’s losses and should attempt to further chip away at these losses.
Dollar/yen has support at 118.25 by another 50-point pivot that targets 117.75 and 118.75. Distant support is at 116.85 by a 50-point pivot, which targets 116.35 and 117.35
Strong resistance is at 119.86. If the defense of the KO options at 120 is somehow surpassed, expect heavy hunting for stop-loss orders. Above 120.15, resistance is seen at 120.50.
Oscillators are rising.
NEAR-TERM: Mixed
MEDIUM-TERM: Slightly bullish
LONG-TERM: Bearish
Sterling/dollar
Sterling/dollar rallied again on Friday, due to more strong UK data and M&A activity and hit a two-week high. It should trade sideways today
Above 1.8865, resistance is now seen at 1.8905. Next level is 1.9010.
Immediate support is at 1.8800. That is followed by 1.8760.
Oscillators are rising.
NEAR-TERM: Mixed
MEDIUM-TERM: Slightly bearish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss lacked direction on Friday and should only tread water today as well.
Below 1.2546, dollar/Swiss franc has support at 1.2500. The next level comes at 1.2470.
Above 1.2635, the pair has resistance at 1.2680. There is a pivotal high at 1.2770.
Oscillators are declining.
NEAR-TERM: Mixed
MEDIUM-TERM: Mixed to slightly bullish
LONG-TERM: Bearish
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