Daily Forex Market Commentary

GFT Daily Forex Market Commentary for February 15, 2007
Forex Market Commentary by Cornelius Luca, Currencies Analyst, GFT

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The dollar fell across the board again on Wednesday after Federal Reserve Chairman Bernanke said inflation pressures were starting to subside. More weakness is likely, but the downside looks limited.

Euro/dollar surged unexpectedly to a near 1 ½-month high. The upside is now favored, but there is limited room.

Initial resistance is at 1.3170. Above 1.3200, the euro/dollar should challenge the pivotal 1.3296 area.

Immediate support is at 1.3075. Below 1.3030 there is support at 1.2985 and 1.2940. There are two distant pivotal lows at 1.2882 and 1.2868.

Oscillators are rising.

NEAR-TERM: Slightly bullish
LONG-TERM: Bullish

Dollar/yen sank further on Wednesday, as expected. Again, it still is premature to call for a double top, but it’s surely looking like one is forming.

Initial support is at 120.55. Below 119.95, dollar/yen retains good support at 119.65 from a 50-pip pivot, which targets 120.15 and 119.15.

Immediate resistance is at 121.05 from a 50-pip pivot, which targets 121.55 and 120.55. Above the 122.18 peak, resistance is seen at 122.50 from a 50-point pivot, which targets 122.00 and 123.00.

Oscillators are falling.

NEAR-TERM: Slightly bearish
LONG-TERM: Bullish

Sterling/dollar rallied sharply on Wednesday but the upside seems limited.

Initial resistance is at 1.9660 must break if further strength is to be seen. Next level is 1.9745. Further resistance looms at 1.9822.

Below 1.9585, there is support at 1.9530. A break below 1.9500 would signal a test of the key 1.9445 level.

Oscillators are rising.

NEAR-TERM: Slightly bullish

Dollar/Swiss franc
Dollar/Swiss franc fell further on Wednesday. The downside is now favored, but seems limited.

Immediate support is now seen at 1.2350. Below 1.2290 there is support at 1.2220, but this level should not be seen.

Initial resistance is at 1.2425. Above 1.2445, resistance now comes at 1.2510. There is a pivotal high level is 1.2570.

Oscillators are edging lower.

NEAR-TERM: Slightly lower
LONG-TERM: Bullish

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