Daily forex market commentary
The closed US and Canadian markets for Labor Day didn’t stop a run on dollar/yen, which was caused by massive long liquidation of crosses against the yen. This should remain the name of the gain today as well.
Euro/dollar
Euro/dollar reversed early losses to close slightly higher on September 1 and then on Labor Day as well. Expect choppy trading on Tuesday.
Above 1.2880 the pair faces a pivotal high at 1.2939.
Immediate support is now pegged at 1.2830. That’s followed by 1.2780. Strong support is at 1.2725. Below the strong area between 1.2690 and 1.2700, support follows at 1.2635
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Mixed
LONG-TERM: Bullish
Dollar/yen
Dollar/yen fell to a near two-week low on Monday, as euro/yen and other yen crosses sank on long liquidation. More pressure should be seen today, as the pattern on the candlestick charts suggests weakness.
The pair still has initial support at 115.80. Below it, good support remains at 115.50, from a 50-pip pivot, which targets 116.00 and 115.00.
Strong resistance is at 116.85 from another 50-point pivot, which targets 116.35 and 117.35.
Oscillators are mixed.
NEAR-TERM: Bearish
MEDIUM-TERM: Mixed to slightly bullish
LONG-TERM: Bearish
Sterling/dollar
The sterling/dollar recovered early losses to close little changed on Friday.
Initial resistance is seen at 1.9090. Above a pivotal resistance at 1.9145, further resistance comes at 1.9270.
Immediate support is now pegged at 1.8960. That’s followed at 1.8930 and 1.8895.
Oscillators are edging higher.
NEAR-TERM: Mixed to slightly bullish
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss franc reversed early gains to close pretty flat on Friday. Trading should be moribund today.
Initial resistance is at 1.2340. Above 1.2390, dollar/Swiss franc has resistance at 1.2420 and then at 1.2480. Very strong resistance follows at 1.2510. If 1.2510 crumbles, which would be tough, then look for a test of 1.2580.
Below the strong support at 1.2260, next floor is pegged at 1.2195.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Mixed
LONG-TERM: Bearish
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