GFT Daily Forex Market Commentary By Cornelius Luca
Daily Forex Market Commentary for September 29, 2006
The dollar rallied further versus the pound, the yen and the franc on Thursday but made little progress against the euro. The outlook remains positive for the dollar and the euro crosses but liquidity should decrease because of the end of the fiscal year.
Euro/dollar
Euro/dollar traded sideways again in a tight range and within an inside range after nailing a one-week low of 1.2660 on Tuesday. The outlook is mixed.
Immediate resistance is pegged at 1.2730. The next level is 1.2755. There is a pivotal high at 1.2830.
Below 1.2660 support is now seen at 1.2630. Next levels are at 1.2515 and then from a pivotal low at 1.2460.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Mixed to slightly lower
LONG-TERM: Bullish
Dollar/yen
Dollar/yen rallied further on Thursday as well to a nine-day high at 118.10. The upside remains mildly favored.
Initial resistance is at 118.25 from another 50-point pivot that targets 117.75 and 118.75. Distant resistance is still seen in the 119.10 area.
Immediate support is at 117.75. There is a Fibonacci retracement level at 117.25. The key support today is at 116.85 from a 50-point pivot, which targets 116.35 and 117.35. That??™s followed by 116.06.
Oscillators are rising.
NEAR-TERM: Mixed to slightly bullish
MEDIUM-TERM: Mixed to slightly bullish
LONG-TERM: Bearish
Sterling/dollar
Sterling/dollar sank sharply, the most in the past three days, after the BoE??™s MPC admitted to errors in the calculation of inflation, which means no further rate hikes will be seen. The outlook remains mildly negative.
The big support is now seen at 1.8700. A break below it would signal an additional decline to 1.8675. Further support is at 1.8625.
Initial resistance is now seen at 1.8800. The next level is at 1.8850 and that??™s followed by 1.8910. Distant resistance is at 1.9070.
Oscillators are declining.
NEAR-TERM: Slightly bearish
MEDIUM-TERM: Slightly bearish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss climbed further up on Thursday and this strength should last today as well.
Above 1.2500, dollar/Swiss franc still resistance at 1.2540. Next level is at 1.2580.
Initial support is at 1.2425. 1.2400 is followed by 1.2350. Below 1.2290, there is a pivotal low at 1.2225. Further support is at 1.2180.
Oscillators are rising.
NEAR-TERM: Mixed to slightly bullish
MEDIUM-TERM: Mixed to slightly bullish
LONG-TERM: Bearish
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