Daily Forex Market Commentary
GFT Daily Forex Market Commentary for December 29, 2006
Forex Market Commentary by Cornelius Luca, Currencies Analyst, GFT
The dollar took another hit early on Thursday but trimmed losses with help from another batch of positive data.
Granted, they were second-tier reports, but they were good enough to suggest that the US economy remains strong. The Conference Board index of consumer sentiment rose to 109.0 in December, the highest level since April 2006, while the Chicago PMI rose to 52.4 in December from 49.9 in November. The dollar t should encounter further choppy trading during the last day of the year.
Euro/dollar
The euro/dollar gave back most of its early gains to closed higher on Thursday. The pair should trade sideways today.
It should probably hold above the support at 1.090. On the other side, a close below this level would signal a sustained decline. Euro/dollar then has support at 1.3030 and 1.2985.
Immediate resistance is at 1.3175. Above 1.3210, euro/dollar has some resistance at 1.3260.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Mixed with bullish bias
LONG-TERM: Bullish
Dollar/yen
Dollar/yen closed higher on Thursday, as expected. It should trade sideways to higher today.
Above 119.23, the pair would challenge the strong 50-pip pivot at 119.65, which targets 120.15 and 119.15. Distant resistance follows at 121.05.
Below 118.65, dollar/yen has support at 118.25 from another 50-point pivot that targets 117.75 and 118.75.
Oscillators are rising.
NEAR-TERM: Mixed to slightly bullish
MEDIUM-TERM: Bullish
LONG-TERM: Bearish
Sterling/dollar
Sterling/dollar rallied sharply on Thursday but then trimmed gains. It should consolidate today.
Immediate and very strong resistance is at 1.9685. Above it, the pair has resistance at 1.9730.
Initial support comes at 1.9590. Below 1.9550 there is strong support at 1.9515.
Oscillators are mixed.
NEAR-TERM: Mixed with bullish bias
MEDIUM-TERM: Mixed with bullish bias
LONG-TERM: Mixed
Dollar/Swiss franc
Dollar/Swiss franc closed slightly lower on Thursday and should mark time today.
Above 1.2315, strong resistance is still seen at 1.2330. Only a close above this level would signal a more sustained recovery to 1.2433.
Immediate support is at 1.2190. 1.2160 follows that. Distant support is at 1.2105
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Mixed with bearish bias
LONG-TERM: Mixed
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