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
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