Daily Forex Market Commentary
The dollar slumped across the board on Friday, as expected, following mixed US data. The dollar should attempt to make a weak recovery since the stock markets held their own.
Euro/dollar
Euro/dollar surged to a new high for the uptrend on Friday but Monday should see some reprieve. 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. Initial support is at 1.3250. The next level remains in place at 1.3200. Below 1.3155, the pair has support at 1.3130. Oscillators are rising.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen fell on Friday, as expected, reversing the previous day’s gains. It should now consolidate. The key level at least early in the week is at 116.85, from a 50-point pivot which targets 116.35 and 117.35. Below the Gann level at 116.00 there is another important 50-point pivot which targets 115.00 and 116.00. Above 117.10, resistance comes at 117.50. Strong resistance follows at 118.25 from a 50-point pivot that targets 117.75 and 118.75. Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bullish
Sterling/dollar
Sterling/dollar rallied to a two-week high on Friday and finally managed to break out of the range of March 5. The pair closed well off its highs and should edge lower today. Initial support is at 1.9370. Good support lies at 1.9300. Next levels are pegged at 1.9250 and 1.9210. Above 1.9460, strong resistance is at 1.9500. Above 1.9560, distant pivotal resistance is at 1.9672. Oscillators are rising.
NEAR-TERM: Mixed
MEDIUM-TERM: Slightly bullish
LONG-TERM: Mixed
Dollar/Swiss franc
Dollar/Swiss franc sank to a three-month low on Friday. It should now edge up for a day or so. Initial resistance comes Initial resistance comes from the breakout point at 1.2105. If this level breaks, then the dollar should recover further to 1.2145. Below 1.2030, a Fibonacci retracement level I mentioned in the previous report, dollar/Swiss franc has strong support at 1.2000. Below 1.1970, there is a pivotal low at 1.1901. Oscillators are falling.
NEAR-TERM: Bearish
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.