GFT Daily Forex Market Commentary by Cornelius Luca
Forex Market Commentary for September 19, 2006
The dollar closed higher against the yen and down versus the European currencies, and this suggests that the crosses against the Japanese currencies will be in demand today as well. The dollar should hold its own against the yen only.
Euro/dollar
Euro/dollar fell to add to its Friday??™s losses and recovered most of this decline on Monday. It should make a mild upmove today.
Immediate and important resistance is at 1.2740. Above 1.2760 there is resistance at 1.2830.
Initial support is at 1.2665. Below 1.2630 support looms at 1.2555.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Mixed to slightly lower
LONG-TERM: Bullish
Dollar/yen
Dollar/yen had the expected upward bias on Monday and this should last today as well.
Good resistance remains at 118.25 from a 50-point pivot that targets 117.75 and 118.75. Distant resistance is still seen in the 119.10 area.
The pair has initial support at 117.30. Strong support follows at 116.85 from another 50-point pivot, which targets 116.35 and 117.35.
Oscillators are rising.
NEAR-TERM: Mixed to slightly bullish
MEDIUM-TERM: Mixed to slightly bullish
LONG-TERM: Bearish
Sterling/dollar
Sterling/dollar saw the expected decline only early on Monday and the made a mild recovery. Mixed trading should prevail.
Immediate support is at 1.8750. That??™s followed by 1.8700. There is a floor at 1.8650 from the 50% retracement of the July to August upmove and from a trendline rising since early April.
Initial resistance is seen at 1.8840. Above 1.8870 there is resistance at 1.8905.
Oscillators are falling.
NEAR-TERM: Mixed
MEDIUM-TERM: Slightly bearish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss reversed Friday??™s losses, so the upside should be on hold today.
Below 1.2460, there is support at 1.2430. Next floor is pegged at 1.2375.
Initial resistance is at 1.2550. Above 1.2621, dollar/Swiss franc has resistance at 1.2695. There is a Fibonacci retracement level at 1.2732.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Mixed to slightly bullish
LONG-TERM: Bearish
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