Daily Forex Market Commentary
GFT Daily Forex Market Commentary for March 13, 2007
Forex Market Commentary by Cornelius Luca, Currencies Analyst, GFT
The dollar suffered a corrective decline on Monday after surging a day earlier.
Only the pound suffered for a little while on renewed unwinding of sterling/yen crosses.
Euro/dollar
Euro/dollar rallied to a one-week high on Monday to reverse losses made in the previous two days. The pair remains in an inside range and only a break out would attract fresh interest.
Initial resistance is at 1.3212 from the top of the range that needs to be broken. Above it, the pair has strong resistance at 1.3240 and 1.3258. Distant resistance comes from a pivot high at 1.3367.
Immediate support comes at 1.3160. A break below 1.3140 means that sideways trading resumed. Vital support follows at 1.3065 and a close below it would confirm a head-and-shoulders formation, which targets the 1.2885 area. Intermediate supports are pegged at 1.3030 and 1.2995.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Mixed with bullish bias
LONG-TERM: Bullish
Dollar/yen
Dollar/yen fell from an 11-day high after rallying aggressively for two days. It gave up about half of the gains on Friday and its hard to tell if this stands for a bearish reversal.
Strong resistance is at 118.25 from a 50-point pivot that targets 117.75 and 118.75. Above 118.75, 119.65 from another 50-point pivot that targets 119.15 and 120.15.
Initial support is at 117.35. The next 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 traded aggressively both ways on Monday but remained stuck in a double inside range. We still need more information.
Immediate support remains at 1.9265. Below 1.9225, the pair should re-test its pivotal low at 1.9179.
Initial resistance is still in play at 1.9360. Above 1.9432 the pair has distant resistance at 1.9520.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Mixed
Dollar/Swiss franc
Dollar/Swiss franc fell on Monday to reverses its gains from Friday. This suggests for the return of sideways trading.
The pair has support at 1.2210. Below the support at 1.2155 there is a pivot low at 1.2110.
Immediate resistance is at 1.2280. If the 1.2352 area gives way, then the dollar should recover further to 1.2405. Above 1.2440, strong resistance comes at 1.2500.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bullish
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