Daily forex market commentary
The dollar traded on cue on Wednesday as well, extending its upmove in early trading, but then failed to hold on to its gains. It closed little changed overall and Thursday should see choppy trading, as the market is preparing mentally for the release of the US unemployment report.
Euro/dollar
Euro/dollar recouped most of the losses on Wednesday and it needs more factors for the next move. Odds are that it will climb up because the ECB will likely hike rates today by 25 basis points to 3.24%.
There is immediate resistance at 1.2760. If this level gives way, look for a further upmove to 1.2795. Further and pivotal resistance remains at 1.2830.
Below 1.2675 support is seen at 1.2630. Distant support is at 1.2560.
Oscillators are mixed.
NEAR-TERM: Mixed to slightly higher
MEDIUM-TERM: Mixed to slightly lower
LONG-TERM: Bullish
Dollar/yen
Dollar/yen retested the pivot at 118.25 and pulled back after failing to break higher. It should see some weakness today.
Immediate support still comes between 117.35 and 117.25. The key support today is at 116.85 from a 50-point pivot, which targets 116.35 and 117.35. That’s followed by 116.06.
Key resistance remains at 118.25 from another 50-point pivot that targets 117.75 and 118.75. Distant resistance is still seen in the 119.10 area.
Oscillators are mixed.
NEAR-TERM: Mixed to slightly bearish
MEDIUM-TERM: Mixed to slightly bullish
LONG-TERM: Bearish
Sterling/dollar
Sterling/dollar consolidated again on Wednesday to close virtually unchanged. The outlook is now mixed.
Initial resistance is still seen at 1.8910. Above 1.8975 distant resistance is at 1.9055.
Good support remains between 1.8800 and 1.8784. This area is followed by 1.8715 and 1.8675. There is a pivot at 1.8635.
Oscillators are mixed.
NEAR-TERM: Mixed to slightly higher
MEDIUM-TERM: Slightly bearish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss recovered all of its Monday losses but then trimmed gains on Wednesday. It should see sideways to lower trading today.
Initial support is at 1.2450. Below 1.2400, the pair has support at 1.2350. The next level comes at 1.2290.
Above 1.2540, dollar/Swiss franc has resistance at around 1.2600. Distant resistance is at 1.2620.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Mixed to slightly bullish
LONG-TERM: Bearish
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