Daily forex market commentary
GFT Daily Forex Market Commentary for 11/13/2006
Forex Market Commentary by Cornelius Luca, Currencies Analyst, GFT
Visit GFT to Learn More
The dollar recovered most of the losses it had encountered early on Friday and this suggests some mild bounce today. Don’t get carried away, the medium-term outlook is negative.
Euro/dollar
Euro/dollar rallied to a 2 ½-month high of 1.2899 early on Friday. However, but then it gave up most of its gains by the close. This suggests an initial decline on Monday. The medium-term outlook remains positive.
Above 1.2900, resistance is seen at 1.2938 and 1.2955. Next strong resistance is naturally pegged at 1.3000.
The pair has initial support at 1.2800. A close below this strong level would signal a decline to 1.2750.
Oscillators are rising.
NEAR-TERM: Mixed with bullish bias
MEDIUM-TERM: Bearish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen recovered most of the losses from a one-week low of 117.16 on Friday. The pair remains at the bottom of its medium-term uptrend and only a close below 117.10 signals the break of the trendline support.
Below 117.10, dollar/yen then has support at 116.85 by a 50-point pivot, which targets 116.35 and 117.35.
Initial resistance remains at 118.25 from another 50-point pivot that targets 117.75 and 118.75. Strong resistance is at 119.86
Oscillators are mixed.
NEAR-TERM: Slightly bearish
MEDIUM-TERM: Slightly bullish
LONG-TERM: Bearish
Sterling/dollar
Sterling/dollar vaulted to a seven-month high of 1.9176 on Friday. While mixed trading is favored early in the week, the medium-term outlook remains positive.
Immediate resistance is at 1.9176. Above this level Cable would be on its way to 1.9275.
Initial support comes at 1.9025. Next level is 1.8960. It would take a close below 1.8900 to confirm a sustained decline.
Oscillators are rising.
NEAR-TERM: Slightly bullish
MEDIUM-TERM: Slightly bearish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss franc fell to a 1 ½-month low of 1.2345 on Friday before trimming losses. The pair should bounce early in the week, but the medium-term outlook is still negative.
Support comes at 1.2360. Below 1.2345, support now lies at 1.2250.
Initial resistance is at 1.2500. Next levels are at 1.2580 and 1.2620. Further resistance is pegged at 1.2700.
Oscillators are declining.
NEAR-TERM: Slightly bearish
MEDIUM-TERM: Mixed to slightly bullish
LONG-TERM: Bearish
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.