Daily Forex Market Commentary
GFT Daily Forex Market Commentary for January 2, 2007
Forex Market Commentary by Cornelius Luca, Currencies Analyst, GFT
The dollar slipped versus the European currencies, but climbed up against the yen on the last business day of 2006. It then fell across the board on the first day of 2007. The initial outlook is negative.
Euro/dollar
The euro/dollar climbed to a one-week high on Friday. The pair should attempt to pad its gains today.
Above 1.3260, euro/dollar has pivotal resistance at 1.3367. Strong resistance follows only at 1.3413.
The pair has support at 1.3210. The next levels are 1.3170 and 1.3120. A close below the latter would signal a more sustained decline.
Oscillators are rising.
NEAR-TERM: Mixed with bullish bias
MEDIUM-TERM: Mixed with bullish bias
LONG-TERM: Bullish
Dollar/yen
Dollar/yen traded sideways on Friday, but fell early Monday. It should trade sideways to lower today.
Below 118.55, dollar/yen retains support at 118.25 from another 50-point pivot that targets 117.75 and 118.75. Next level is at 117.20.
Immediate resistance is at 119.05. The pair has strong resistance at 119.65 from a 50-pip pivot, which targets 120.15 and 119.15.
Oscillators are rising.
NEAR-TERM: Mixed with bearish bias
MEDIUM-TERM: Bullish
LONG-TERM: Bearish
Sterling/dollar
Sterling/dollar slipped on Friday, as euro/sterling surged, but rallied early Monday. It should trade higher today.
Immediate resistance is at 1.9690. Above it, the pair has resistance at 1.9730. Sterling/dollar then has a pivotal resistance at 1.9838.
Initial support comes at 1.9615. The next big level is 1.9555. If cable can penetrate below 1.9520, then look for another decline to 1.9465.
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 Friday and remained under selling pressure today.
Immediate support is between 1.2125 and 1.2110. That is followed by 1.2050 and then by a Gann level at 1.1995. Strong support follows at 1.1930.
Initial resistance is at 1.2175. Above 1.2225, resistance is in place at 1.2270.
Oscillators are mixed.
NEAR-TERM: Mixed with bearish 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.