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Daily Forex Market Commentary for September 13, 2006

GFT Daily Forex Market Commentary by Cornelius Luca
Forex Market Commentary for September 13, 2006


The dollar was, again, all over the place on Tuesday, as crosses against the yen ruled. It rallied versus the yen and the franc, fell against the pound, and stayed flat versus the euro. Expect the US currency to advance, but the upside looks limited on Wednesday.

Euro/dollar
Euro/dollar traded sideways in a tight range and closed little change on Tuesday. Expect some attempt to push slightly lower today.

Initial support is seen at 1.2660. That followed by the area between 1.2631 and 1.2639. Further support looms at 1.2555.

Immediate resistance is seen at 1.2720 and then at 1.2745. Above 1.2815 there is resistance at 1.2850.

Oscillators are declining.

NEAR-TERM: Mixed
MEDIUM-TERM: Mixed to slightly lower
LONG-TERM: Bullish

Dollar/yen
Dollar/yen rallied for the third consecutive day and reached a five-month high on Tuesday. The upside looks in demand, but strong resistance is accumulating nearby.

Strong resistance remains at 118.25 from a 50-point pivot that targets 117.75 and 118.75. 118.25 is unlikely to break. Pivotal resistance follows at 119.00.

The pair has initial support at 117.40. Strong support follows 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 rising.

NEAR-TERM: Mixed to slightly bearish
MEDIUM-TERM: Mixed to slightly bullish
LONG-TERM: Bearish

Sterling/dollar
Sterling/dollar rallied on Tuesday after a report showed inflation still strong. Again, following a brief bounce, the market should attempt pressing the cable further down, as the BoE will not just jump and hike rates.

Immediate support is now pegged to 1.8675. Below 1.8600 there is strong support only at 1.8555.

Initial resistance is still seen at 1.8770. Above 1.8835 there is resistance at 1.8870 and at 1.8900.

Oscillators are declining.

NEAR-TERM: Mixed
MEDIUM-TERM: Slightly bearish
LONG-TERM: Bullish

Dollar/Swiss franc
Dollar/Swiss reversed losses to hit a seven-month high after a SNB official said the local economy had peaked. The overall picture remains bullish.

Initial resistance is at 1.25805 and that??™s followed nearby by a pivotal high at 1.2594. Distant resistance is pegged at 1.2700.

Immediate support is at 1.2505. Below 1.2490 there is support at 1.2440 and 1.2410. Distant support is now pegged at 1.2280.

Oscillators are rising.

NEAR-TERM: Mixed to slightly bullish
MEDIUM-TERM: Mixed to slightly bullish
LONG-TERM: Bearish

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