New book by Larry Connors Click here Improve your trading - See how
The dollar rallied versus the European currencies on Thursday, as expected. The surprise came from dollar/yen, which exploded higher as well, after marking time for a week. The dollar should attempt to march higher – provided that the US GDP is not as weak as it is rumored.
Euro/dollar
The overbought euro/dollar headed down on Thursday and hit strong support at 1.3590. It is swerving in the upper half of its rising channel, so only an aggressive break below 1.3590 would invite a further downmove.
If this level gives way, euro/dollar should test the support at 1.3550. If this level breaks as well, this would signal the end of the upmove. Good support follows at 1.3470. Distant support remains at 1.3390.
Initial resistance is at 1.3655. Above 1.3718, the pair has distant resistance is at 1.3805.
Oscillators are edging down.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen exploded higher on Thursday on cross trading and managed to break above the middle of its rising channel. It’s probing significant resistance at the opening levels, and the pair’s behavior at this level would dictate the next direction. Expect aggressive trading today, but the next direction is unclear.
Initial resistance is at 119.65 from a 50-point pivot that targets 119.15 and 120.15. Distant resistance is at 120.55.
Immediate support is between 119,15 and 119.00. Strong support is still seen at 118.25 by a 50-point pivot that targets 117.75 and 118.75.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Sterling/dollar
Sterling/dollar made an aggressive decline below the $2 area and hit a nine-day low on Thursday. It must pierce significant support at 1.9860 if the slide may continue unabated.
If 1.9860 gives way, the pair would challenge the support at 1.9800. Distant support follows at 1.9705.
Initial resistance is at 1.9980. Above 2.0050, the next level is 2.0100. Next cap is seen between 2.0140 and 2.0155.
Oscillators are declining.
NEAR-TERM: Mixed with bearish bias
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/Swiss franc
One day after hitting a four-month low dollar/Swiss franc made a nice recovery that was fueled by short covering. It looks like a double bottom is forming, but there is no confirmation yet. The immediate outlook is positive, but the medium-term view remains slightly bearish.
Initial resistance is at 1.2130. A confirmation that the slide is over would come only from a break above this level. Further resistance comes at 1.2200. Distant resistance is still seen at 1.2255.
Immediate support is at 1.2065. Very significant support is at 1.1990 and then nearby at 1.1980 from a trendline rising since January 2005. Only an aggressive move beneath this line would signal a sustained decline. There is a key level at 1.1945. Dollar/Swiss franc then has strong support at 1.1885.
Oscillators are rising.
NEAR-TERM: Mixed with bullish bias
MEDIUM-TERM: Slightly bearish
LONG-TERM: Slightly 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.
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
