NEWS / Government Ministries

Daily Forex Market Commentary for June 13, 2006

Tuesday, June 13, 2006 8:00 GMT
Daily Forex Market Commentary
By: Cornelius Luca, Currencies Analyst, GFT


The dollar ended higher on Monday versus the euro and the yen, slipped against the pound and only consolidated versus the franc. The outlook remains positive, so hold long dollars with a tight stop.

Euro/dollar
The euro/dollar fell on Tuesday to a 1 ??-month low of 1.2564 after forming a double top late last week.

Below 1.2564, support is now seen at 1.2520. Distant support is pegged at 1.2420.

Immediate resistance is at 1.2625. Above 1.2650, resistance is seen at 1.2700. Distant resistance is at 1.2760

Oscillators are declining.

NEAR-TERM: Marginally higher
MEDIUM-TERM: Bearish
LONG-TERM: Bullish

Dollar/yen
Dollar/yen ended with minor gains on Monday but remained in an inside range. It should see a minor pullback before resuming its upmove. Key level is still pegged at 114.20 from a 50-point pivot that targets 113.70 and 114.70.

Above 114.70, the top of the rally so far and the upside target of the 114.20 Gann pivot, resistance lies at 115.50.

Below 113.70, strong support remains at 112.90 from a 50-point pivot, which targets 113.40 and 112.40.

Oscillators are rising.

NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bearish

Sterling/dollar
Sterling/dollar edged higher on Monday.

Initial support is at 1.8380. Below 1.8368, support is still seen at 1.8260. Distant support lies at 1.8180.

Immediate resistance is at 1.8460 and that??™s followed by 1.8500. If this level gives way, look for a break above 1.8550 and an unlikely test of 1.8650.

Oscillators are falling.

NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bullish

Dollar/Swiss franc
Dollar/Swiss franc marked time and closed virtually unchanged on Monday. Following a brief pullback, it should resume its upmove.

Initial resistance remains at 1.2365. Above 1.2400, resistance is now seen at 1.2490.

Immediate support is at 1.2290. Below 1.2240 there is support at 1.2180. There is a strong level at 1.2060.

Oscillators are rising.

NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bearish

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