Tuesday December 4, 2007 - 21:33:38 GMT
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Daily Forex Market Commentary for 12/4/2007
Tuesday, December 04, 2007 8:00 GMT
Daily Forex Market Commentary
By: Cornelius Luca, Currencies Analyst, GFT
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The dollar slipped on Monday on profit taking. There was also pressure from renewed expectations for a rate cut next week. Federal Reserve Bank of San Francisco President Yellen warned financial conditions and consumer spending deteriorated more than expected and Treasury Secretary Paulson expected the government and the banks to agree on a plan to limit the impact from the subprime-mortgage debacle. There is no US data today, so mild pressure should continue for the dollar.
The euro/dollar climbed up on Monday, but got stuck in an inside range. It held below the 20-day moving average and this suggests further weakness this week. But the initial risk is higher.
Initial resistance is seen at 1.4710. Above 1.4805, strong resistance is seen at 1.4905.
Immediate support is at 1.4620. A break below 1.4545 would suggest the end of the uptrend. The next level is 1.4515.
Oscillators are declining.
Dollar/yen fell on Monday, as expected, but got stuck in an inside range. On a longer-term basis, it formed a bullish reversal on a weekly basis. Another mild pullback is likely in the short term.
Initial support now comes at 110.35 from a 50-point pivot that targets 109.85 and 110.85. Further support is at 109.50.
Immediate resistance is at 111.00. Strong resistance is at 111.60 from a 50-point pivot that targets 112.10 and 111.10. This is followed by another 50-point pivot at 112.90.
Oscillators are rising.
The high-yielding sterling/dollar reversed early losses and formed a bullish reversal on the daily chart. But it held below the 20-day moving average so a move down is more likely.
Initial support is at 2.0610. Below 2.0530, there is distant support at 2.0455.
Immediate resistance is seen at 2.0675. 2.0730 follows that. Above 2.0833, resistance remains at 2.0875.
Oscillators are mixed.
NEAR-TERM: Mixed with bearish bias
Dollar/Swiss pulled back on profit taking on Monday after rallying for four days but got stuck in an inside range. A bottom in now in place and more strength is likely in the medium term. But the initial risk is down.
Immediate support is at 1.1210. Below 1.1150, support is pegged at 1.1100. The next support is at 1.1025.
Initial resistance is at 1.1330. Above 1.1400, there is resistance at 1.1530.
Oscillators are rising.
NEAR-TERM: Mixed with bullish bias
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