Daily Forex Market Commentary for September 22, 2006

GFT Daily Forex Market Commentary by Cornelius Luca
Forex Market Commentary for September 22, 2006

The dollar fell badly on Thursday on news the Federal Reserve Bank of Philadelphia's general economic index unexpectedly contracted to minus 0.4 in September from 18.5 in August. That is the first contraction since April 2003. The dollar should remain under selling pressure.

Euro/dollar
Euro/dollar surged to a two-week high on Thursday following the lousy US data and should advance more today.

Important resistance remains at 1.2830. There is a pivotal high at 1.2878. Distant resistance looms at 1.2938.

Initial support is at 1.2750. Below 1.2700, support looms at 1.2660.

Oscillators are rising.

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

Dollar/yen
Dollar/yen sank to a near two-week low on Thursday and reached the target of a choppy double top. The break below the 50-point pivot at 116.85 led to its downside target.

Below 116.10 there is massive support at 115.50 from another 50-point pivot, which targets 115.00 and 116.00.

Initial resistance is at 116.55. Next levels are at 117.00 and then at 117.25. Distant resistance is at 118.25 from a 50-point pivot that targets 117.75 and 118.75.

Oscillators are declining.

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

Sterling/dollar
Sterling/dollar surged to a 16-day high on Thursday and more strength should be seen today.

Initial resistance is seen at 1.9050. Above it there is resistance at 1.9090. A pivotal high is at 1.9144.
Immediate support is at 1.8930. That??�s followed by 1.8900. There is another support at 1.8840. A further floor is now seen at 1.8780.

Oscillators are rising.

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

Dollar/Swiss franc
Dollar/Swiss reversed early gains and closed down on Thursday.

Immediate support is at 1.2380. Next floor is pegged at 1.2310. Distant support is at 1.2224.

Initial resistance is at 1.2470. Next ceilings are at 1.2500 and 1.2550. Above 1.2621, dollar/Swiss franc has resistance at 1.2695.

Oscillators are declining.

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

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