Daily forex market commentary
The dollar rallied further versus the European currencies and also against the yen. It then gave back its gains versus the euro and the franc. Following a brief pullback, the dollar shout attempt to advance further.
Euro/dollar
Euro/dollar fell to the lowest levels of the week and smashed the support from a 50% retracement at 1.2815.
Immediate support is now seen at 1.2770. Strong support remains at 1.2725. Below the strong area between 1.2690 and 1.2700, support follows at 1.2635
Any further recovery would encounter resistance at 1.2845. Above 1.2880 the pair faces a pivotal high at 1.2939.
Oscillators are declining.
NEAR-TERM: Mixed to slightly lower
MEDIUM-TERM: Mixed
LONG-TERM: Bullish
Dollar/yen
Dollar/yen rallied smartly on Wednesday to erase most of the Monday’s decline, as expected, and the euro/yen cross recovered.
Strong resistance remains at 116.85 from another 50-point pivot, which targets 116.35 and 117.35.
The pair has initial support at 116.35. 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 fell sharply for the second consecutive day on Wednesday. It should make a mild recovery before attempting another move down.
Immediate support is now seen at 1.8790. That’s followed by 1.8774 and 1.8735. Distant support is at 1.8670.
Initial resistance is seen at 1.8875. This level is followed by 1.8920 from a Fibonacci retracement level and then by 1.8960. Further resistance comes from a pivotal resistance at 1.9090.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss franc rallied again on Wednesday and smashed the resistance of a trendline at 1.2345 intraday. But gave it all up. Following a brief pullback, it should try to pad its gains.
Resistance is seen at 1.2400. Above it, dollar/Swiss franc has resistance at 1.2480 and then at 1.2510. If 1.2510 breaks, then expect a test of 1.2580.
Initial support is at 1.2310. Below the strong support at 1.2260, next floor is pegged at 1.2195.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Mixed
LONG-TERM: Bearish
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.