Daily Forex Market Commentary
GFT Daily Forex Market Commentary for March 20, 2007
Forex Market Commentary by Cornelius Luca, Currencies Analyst, GFT
The dollar made the expected weak recovery on Monday versus all the majors except for the pound. The quid was helped up by another positive housing report. The US currency should attempt another recovery today.
Euro/dollar
One day after surging to a new high for the uptrend, euro/dollar saw the expected mild reprieve. It got stuck in an inside range, saw more information is needed.
Initial support remains at 1.3250. The next level is still in place at 1.3200. Below 1.3155, the pair has support at 1.3130.
Above 1.3338, the euro/dollar would eye a pivotal high at 1.3367. The pair then has strong resistance at 1.3435 and 1.3475.
Oscillators are rising.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/yen
For the past three days dollar/yen has alternated up and down days, going nowhere fast, and Monday was the up day. It must break above 118.25 to snap this “pattern†or else it will slip and consolidate further.
So, initial resistance comes at 118.25 from a 50-point pivot that targets 117.75 and 118.75. Distant resistance follows 119.25 and then at 119.65.
Initial support is at 117.99. The key support level is at 116.85 from a 50-point pivot which targets 116.35 and 117.35.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bullish
Sterling/dollar
Sterling/dollar reversed early losses on Monday with help from another positive report about the housing sector. The pair closed within an inside range and needs more information from here.
Immediate resistance is at 1.9460 and strong resistance follows at 1.9500. Above 1.9560, distant pivotal resistance is at 1.9672.
Initial support is at 1.9380. Good support then lies at 1.9300. Next levels are pegged at 1.9250 and 1.9210.
Oscillators are rising.
NEAR-TERM: Mixed
MEDIUM-TERM: Slightly bullish
LONG-TERM: Mixed
Dollar/Swiss franc
One day after sinking to a three-month low, dollar/Swiss rallied on Monday, as expected. It got stuck in an inside range, but should try to continue this recovery.
Initial resistance comes at 1.2150. If this level breaks, then the dollar should recover further to 1.2230. Distant resistance comes at 1.2290.
Strong support is at 1.2070. Below a Fibonacci retracement level at 1.2030, dollar/Swiss franc has strong support at 1.2000. Below 1.1970, there is a pivotal low at 1.1901.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bullish
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.