Daily Forex Market Commentary
GFT Daily Forex Market Commentary for December 26, 2006
Forex Market Commentary by Cornelius Luca, Currencies Analyst, GFT
The dollar encountered choppy trading on Thursday but closed the day little changed. That was a vote of confidence, given the terrible US data and a disgusting reminder that terrorists are not looking forward to Christmas. The dollar gave up its early gains on Thursday following a very weak Philly Fed report and blipped lower on British intelligence warnings of possible al Qaeda attacks in London over the holidays. Expect only choppy trading during the shortened business day today.
Euro/dollar
The euro/dollar traded all over the place on Thursday to close basically unchanged. The pair should stall early today.
Initial support is at 1.3135. A break below this level would signal that Tuesday’s rally was a fluke. Euro/dollar would then have support at 1.3050.
Immediate resistance is at 1.3210. Above the strong 1.3250 level, which held on Wednesday, the euro/dollar has resistance at 1.3290. There is a pivotal high at 1.3367.
Oscillators are mixed.
NEAR-TERM: Mixed with bearish bias
MEDIUM-TERM: Mixed with bullish bias
LONG-TERM: Bullish
Dollar/yen
Dollar/yen did an encore performance of the Wednesday performance and re-tested its new high for the uptrend. If the overbought yen crosses get hurt today, then the pair will encounter selling pressure. If not, the immediate outlook remains mixed.
The pair retains resistance at 118.75, which is the target of the 118.25 pivot. Next level is now the 50-point pivot at 119.65, which targets 116.15 and 120.15.
Initial support is at 118.10. Below 117.75, there is support at 117.10. A break above this strong level would test the 50-point pivot at 116.85, which targets 116.35 and 117.35.
Oscillators are rising.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bearish
Sterling/dollar
Sterling/dollar made the expected decline on Thursday but closed with only small losses. The pair should try to dip further today.
Below 1.9555, the pound has strong support at 1.9490. Further support follows at 1.9435.
Initial resistance is at 1.9690. The next ceiling looms at 1.9755. Above 1.9800, the pair has resistance from a pivotal high at 1.9846.
Oscillators are mixed.
NEAR-TERM: Mixed with bearish bias
MEDIUM-TERM: Mixed with bullish bias
LONG-TERM: Mixed
Dollar/Swiss franc
Dollar/Swiss franc made the expected recovery only early on Thursday and then reversed its gains. It should trade sideways today.
Above 1.2210, the pair still has resistance at 1.2265.
Immediate support is at 1.2130. The next level is 1.2070. That is followed by 1.2020 and 1.1985.
Oscillators are rising.
NEAR-TERM: Mixed with bullish bias
MEDIUM-TERM: Mixed with bearish bias
LONG-TERM: Mixed
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.