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GFT Daily Forex Market Commentary for January 26, 2007
Forex Market Commentary by Cornelius Luca, Currencies Analyst, GFT
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The dollar advanced versus the European currencies down on Thursday and held its own against the yen. The European currencies should remain under pressure versus the dollar and the yen today as well.
Euro/dollar
The euro/dollar sank on Thursday as well after reaching the top of its rising consolidation on Tuesday. The pair exited from an inside range and should edge lower again.
Key support is at 1.2891. Below 1.2863, the pair has strong support at 1.2820. A close below this level would signal a further significant decline to 1.2760.
Initial resistance is at 1.2965 and then at 1.2990. Above Tuesday’s high of 1.3044, resistance comes at 1.3060 and 1.3090. Next level is 1.3130. Distant resistance is at 1.3240.
Oscillators are mixed.
NEAR-TERM: Slightly bearish
MEDIUM-TERM: Mixed
LONG-TERM: Bullish
Dollar/yen
Dollar/yen recovered losses to close slightly higher, as talk of G7 talk of criticizing the weakness of the yen diminished. Now, expect a recovery. The key level is at 121.05 from a 50-pip pivot that targets 120.55 and 121.55.
Immediate resistance is 121.55. Above 122.10, dollar/yen retains resistance at 122.50 from a 50-point pivot, which targets 122.00 and 123.00.
Initial support is at 120.55. Further support is seen at 120.15. Strong support follows at 119.65 from a 50-pip pivot, which targets 120.15 and 119.15.
Oscillators are rising.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Sterling/dollar
Sterling/dollar fell further on Thursday. The pair is less overbought and is approaching key support.
There is strong support at 1.9580. If this level breaks, then look for a test at 1.9510. Distant support is now seen at 1.9450.
Above 1.9735, resistance comes at 1.9775 and then at 1.9810. Distant resistance follows at 1.9910.
Oscillators are falling.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Mixed
Dollar/Swiss franc
Dollar/Swiss franc remained sidelined in an inside range. Expect sideways trading today as well.
Immediate support remains at 1.2430. Below 1.2374 there is another peg at 1.2325. Distant support is seen at 1.2275.
Initial resistance is at 1.2546. Above it, resistance remains at 1.2660 from the target of a bull flag.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Mixed
LONG-TERM: Mixed
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