Daily Forex Market Commentary for November 20, 2006

GFT Daily Forex Market Commentary for November 20, 2006
Daily Forex Market Commentary by Cornelius Luca, Currencies Analyst, GFT

The dollar was hurt on Friday by the very weak US housing data. The dollar should consolidate during this short week, as the markets will pretty much come to a standstill on Thursday because of Thanksgiving. The immediate bias is negative.

Euro/dollar
Euro/dollar recovered on Friday but got stuck in an inside range. The medium-term outlook remains positive, but sideways to lower trading should persist during this short week.

Initial resistance looms at 1.2850. Above 1.2900, resistance is seen at 1.2938 and 1.2955.

The pair retains initial support at 1.2800. A close below this strong level would signal a decline to 1.2750.

Oscillators are mixed.

NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bullish

Dollar/yen
The dollar/yen reversed early gains to fall on Friday. The Gann pivot point at 118.25 still rules. Sideways trading is favored.

Initial resistance is at 118.25 from another 50-point pivot that targets 117.75 and 118.75. Strong resistance is at 119.86.

Initial support is 117.35. Below it, dollar/yen has support at 116.85 by a 50-point pivot, which targets 116.35 and 117.35.

Oscillators are mixed.

NEAR-TERM: Mixed
MEDIUM-TERM: Slightly bullish
LONG-TERM: Bearish

Sterling/dollar
Sterling/dollar trimmed losses after hitting a three-week low of 1.8834 on Friday. While mixed trading is favored early in the week, the medium-term outlook is now negative.

Initial support comes at 1.8915. It would take a close below 1.8900 to confirm a sustained decline.

Good resistance is at 1.9010. That is followed by 1.9050 and 1.9105.

Oscillators are mixed.

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

Dollar/Swiss franc
Dollar/Swiss rallied made new daily highs early Friday but then sharply to keep the pair in an inside range. The pair should bounce early in the week, but the medium-term outlook is still negative.

Support comes at 1.2360. Below 1.2345, support now lies at 1.2250.

Initial resistance is at 1.2500. Next levels are at 1.2580 and 1.2620.

Oscillators are mixed.

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

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