Daily forex market commentary
The dollar fell against the European currencies but closed flat versus the yen on a day slowed by the London holiday. Expect further weakness today, but keep your eyes on the release of the Conference Board consumer confidence report.
Euro/dollar
Euro/dollar rallied on Monday but gave back most of gains by the close.
Initial resistance is still seen at 1.2800 and then at 1/2820 and 1.2835. That’s followed by 1.2900. Above 1.2938, the pair has resistance from a pivotal high at 1.2979.
Immediate support is at 1.2755. Below the1.2715 level, strong support remains between 1.2690 and 1.2700. Distant support is at 1.2655.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Mixed
LONG-TERM: Bullish
Dollar/yen
Dollar/yen traded sideways to lower on Monday, as expected, and the 116.85 pivot dictated the market. The same should be seen today.
Above 117.39, resistance looms at 117.75. Good resistance is still seen at 118.25 from a 50-point pivot that targets 117.75 and 118.75.
The pair has strong support at 116.85 from another 50-point pivot, which targets 116.35 and 117.35. Below 115.80, good support remains at 115.50, from a 50-pip pivot, which targets 116.00 and 115.00.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Mixed to slightly bullish
LONG-TERM: Bearish
Sterling/dollar
The sterling/dollar rallied on Monday but failed to surpass the strong resistance at 1.8990 and slipped into the close. Further sideways trading is favored while the pair remains stuck in an inside range.
Initial resistance comes at 1.8990. That’s followed by 1.9024. Distant resistance is at 1.9095.
Support is initially seen at 1.8885. The next level is 1.8825. That’s followed at 1.8765 by a Fibonacci retracement level. Next levels remain at 1.8685, 1.8655 and 1.8615.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss franc fell on Monday but managed to recover about half of its losses. Sideways to lower trading is favored.
Below the strong support at 1.2340, next floor is pegged at 1.2285. 1.2255 is strong as well.
Above 1.2420, dollar/Swiss franc still has resistance at 1.2480 and then very strong resistance at 1.2510. If 1.2510 crumbles, which would be tough, then look for a test of 1.2580.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Mixed to slightly bullish
LONG-TERM: Bearish
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