New book by Larry Connors Click here Improve your trading - See how
GFT Daily Forex Market Commentary for June 7, 2007
Forex Market Commentary by Cornelius Luca, Currencies Analyst, GFT
Visit GFT to Learn More
The dollar rallied against the euro after the ECB hiked rates, as universally expected, but weakened further versus the yen and the Swiss. The short-term outlook is negative for the US currency.
Euro/dollar
The euro/dollar fell in an inside range on Wednesday, but its double bottom remains in play – if barely. This bullish reversal pattern targets the 1.3600 area.
Initial resistance is now seen at 1.3522. A break above this important level would signal a retest of the 1.3553 area. A more aggressive upmove would attack 1.3610, but this is unlikely. Distant resistance is at 1.3683.
Immediate support is at 1.3485. If the further level at 1.3450 breaks, expect a test of the support at 1.3375. Below this the Fibonacci retracement level there is support at 1.3275.
Oscillators are rising.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen fell on Wednesday as well, as expected, and hit the lowest level since May 25. The short-term outlook remains bearish. Key level remains at 121.05 from a 50-point pivot, which targets 120.55 and 121.55.
Initial support is at 121.90. Next levels are 120.55 and 120.05.
Initial resistance is at 121.55. Above 122.18 the next resistance remains at 122.50 from another 50-point pivot, which targets 122.00 and 123.00.
Oscillators are declining.
NEAR-TERM: Bearish
MEDIUM-TERM: Mixed
LONG-TERM: Bullish
Sterling/dollar
Sterling/dollar marked time on Wednesday and more information is needed. It still looks more and more like an inversed head-and-shoulders, despite its wrong position, and this targets 2.0150. Following a pull back today, it should trade further up.
If the resistance at 1.9970 breaks, then look for a further rally to 2.0035. Distant resistance is at 2.0133.
Initial support is at 1.9905. Next level is 1.9860. Below 1.9727 there distant support at 1.9655.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss franc fell again on Wednesday to a three-week low and is approaching the target of a double top in the 1.2065 area. The medium-term outlook is negative.
Immediate support is at 1.2150. Below it, the next levels are 1.2125, 1.2095 and 1.2065.
Initial resistance is pegged at 1.2195. Next level is 1.2250. Above the resistance at 1.2332 there is distant resistance is at 1.2370.
Oscillators are falling.
NEAR-TERM: Bearish
MEDIUM-TERM: Mixed
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.
