GFT Daily Forex Market Commentary for November 22, 2006
Daily Forex Market Commentary by Cornelius Luca, Currencies Analyst, GFT
The dollar encounter selling pressure across the board on Tuesday. The dollar should consolidate further during this short week, as the markets will pretty much come to a standstill from late Wednesday because of Thanksgiving. The immediate bias is mixed as well.
Euro/dollar
Euro/dollar rallied to a one-week high on Tuesday and this is in line withe positivemedium-term outlook. Sideways trading trading should prevail today.
Initial resistance comes at 1.2870. Above 1.2900, resistance is seen at 1.2938 and 1.2955.
Below 1.2830 the pair retains support at 1.2795. A close below this strong level would signal a decline to 1.2750.
Oscillators are rising.
NEAR-TERM: Bullish
MEDIUM-TERM: Bearish
LONG-TERM: Bullish
Dollar/yen
The dollar/yen gave up Monday's gains and remained in an inside range. The Gann pivot point at 118.25 capped. Sideways trading is favored for the rest of the week.
Below 117.35, dollar/yen has support at 116.85 by a 50-point pivot, which targets 116.35 and 117.35.
Above 117.85, resistance is at 118.25 from another 50-point pivot that targets 117.75 and 118.75. Strong resistance is at 119.86.
Oscillators are mixed.
NEAR-TERM: Bearish
MEDIUM-TERM: Slightly bullish
LONG-TERM: Bearish
Sterling/dollar
Sterling/dollar marched higher on Tuesday, as well, and the pair hit a one-week high.
Above the resistance at 1.9050 there is a barrier at 1.9105. That is followed by 1.9176.
Initial support comes at 1.8986. 1.8925 follows. It would take a close below 1.8900 to confirm a sustained decline.
Oscillators are rising.
NEAR-TERM: Bullish
MEDIUM-TERM: Mixed
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss closed lower on Tuesday but remained enveloped in Monday's range. The pair should attempt to find its footing here and bounce today, but the medium-term outlook is still negative.
Support remains at 1.2360. Below 1.2345, support now lies at 1.2250.
Initial resistance is at 1.2420. That is followed by1.2445 and 1.2475. Above 1.2500, next levels are at 1.2580 and 1.2620.
Oscillators are mixed.
NEAR-TERM: Bearish
MEDIUM-TERM: Mixed to slightly bullish
LONG-TERM: Bearish
DISCLAIMER: This forum and the information provided here should not be relied on as a substitute for extensive independent research before making your investment decisions. Global Forex Trading is merely providing this column for your general information. The views of the author are not necessarily those of Global Forex Trading, its owners, officers, agents or employees. In addition, any projections or views of the market provided by the author may not prove to be accurate. Global Forex Trading and Cornelius Luca will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained in this column. Global Forex Trading and Cornelius Luca do not render investment, legal, accounting, tax, or other professional advice. If investment, legal, tax, or other expert assistance is required, the services of a competent professional should be sought.