Daily forex market commentary

The dollar was, again, all over the
place on Tuesday,
as crosses against the yen ruled. It rallied
versus the yen and the franc, fell against the pound, and stayed flat versus
the euro. Expect the US currency to advance, but the upside looks limited on
Wednesday.

Euro/dollar

Euro/dollar traded sideways in a tight range and closed
little change on Tuesday. Expect some attempt to push slightly lower today.

Initial support is seen at 1.2660. That followed by the area
between 1.2631 and 1.2639. Further support looms at 1.2555.

Immediate resistance is seen at 1.2720 and then at 1.2745.
Above 1.2815 there is resistance at 1.2850.

Oscillators are declining.

NEAR-TERM: Mixed
MEDIUM-TERM: Mixed to slightly lower

LONG-TERM: Bullish

Dollar/yen

Dollar/yen rallied for the third consecutive day and reached
a five-month high on Tuesday. The upside looks in demand, but strong
resistance is accumulating nearby.

Strong resistance remains at 118.25 from a 50-point pivot
that targets 117.75 and 118.75. 118.25 is unlikely to break. Pivotal
resistance follows at 119.00.

The pair has initial support at 117.40. Strong support
follows at 116.85 from another 50-point pivot, which targets 116.35 and
117.35. Below 115.80, good support remains at 115.50, from a 50-pip pivot,
which targets 116.00 and 115.00.

Oscillators are rising.

NEAR-TERM: Mixed to slightly bearish
MEDIUM-TERM:
Mixed to slightly bullish
LONG-TERM: Bearish

Sterling/dollar

Sterling/dollar rallied on Tuesday after a report showed
inflation still strong. Again, following a brief bounce, the market should
attempt pressing the cable further down, as the BoE will not just jump and
hike rates.

Immediate support is now pegged to 1.8675. Below 1.8600
there is strong support only at 1.8555.

Initial resistance is still seen at 1.8770. Above 1.8835
there is resistance at 1.8870 and at 1.8900.

Oscillators are declining.

NEAR-TERM: Mixed
MEDIUM-TERM: Slightly bearish

LONG-TERM: Bullish

Dollar/Swiss franc

Dollar/Swiss reversed losses to hit a seven-month high after
a SNB official said the local economy had peaked. The overall picture remains
bullish.

Initial resistance is at 1.25805 and that’s followed nearby
by a pivotal high at 1.2594. Distant resistance is pegged at 1.2700.

Immediate support is at 1.2505. Below 1.2490 there is
support at 1.2440 and 1.2410. Distant support is now pegged at 1.2280.

Oscillators are rising.

NEAR-TERM: Mixed to slightly bullish
MEDIUM-TERM:
Mixed to slightly bullish
LONG-TERM: Bearish


Visit GFT to Learn More

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.