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Daily Forex Market Commentary for September 25, 2006

GFT Daily Forex Market Commentary by Cornelius Luca
Forex Market Commentary for September 25, 2006


The dollar recovered early losses to close little changed on Friday. It??™s oversold in the short term, so expect a bounce first before encountering further selling pressure.

Euro/dollar
Euro/dollar surged to a new two-week high early on Friday but it gave it all up. It should slip first on Monday.

Immediate resistance is now pegged at 1.2830. That??™s followed by 1.2875.

Below 1.2750 support looms at 1.2630.

Oscillators are rising.

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

Dollar/yen
Dollar/yen sank to a two-week low early on Friday but then recovered losses. It officially formed a bearish reversal formation last week but has probably found a decent floor and should stabilize before another sell-off may occur.

The pair has initial support at 116.06. Below 115.80, good support remains at 115.50, from a 50-pip pivot, which targets 116.00 and 115.00.

Initial resistance is at 116.85 from a 50-point pivot, which targets 116.35 and 117.35.

Oscillators are declining.

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

Sterling/dollar
Sterling/dollar surged to a 17-day high early on Friday but is now overbought and should slip first on Monday.

Initial resistance is seen at 1.9060. Above 1.9100 there is resistance at 1.9140.

Immediate support is at 1.8930 and that??™s followed by 1.8900.

Oscillators are rising.

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

Dollar/Swiss franc
Dollar/Swiss reversed early losses and closed virtually unchanged on Friday.

Below 1.2300, there is a pivotal low at 1.2225. Further support is at 1.2180.

Above 1.2430, dollar/Swiss franc has resistance at 1.2500.

Oscillators are declining.

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

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