Daily Forex Market Commentary
GFT Daily Forex Market Commentary for February 15, 2007
Forex Market Commentary by Cornelius Luca, Currencies Analyst, GFT
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
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
MEDIUM-TERM: Mixed
LONG-TERM: Bullish
Dollar/yen
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
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Sterling/dollar
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
MEDIUM-TERM: Bullish
LONG-TERM: Mixed
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
MEDIUM-TERM: Mixed
LONG-TERM: Bullish
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.