Monday January 7, 2008 - 14:47:42 GMT
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Daily Forex Market Commentary for 1/7/2008
Monday, January 07, 2008 8:00 GMT
Daily Forex Market Commentary
By: Cornelius Luca, Currencies Analyst, GFT
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The very weak non-farm payrolls report failed to keep the dollar down for long. The US currency recovered its losses versus the European currencies, but remained under pressure against the yen, which is following the yuan higher. Long liquidation of yen crosses contributed to the dollar/yen weakness. The dollar should attempt to pad its recovery versus the European currencies today.
Euro/dollar on Friday fell from a five-week high to close unchanged. Today should see another attempt of a pull back.
Initial resistance is still seen at 1.4780. The next level is 1.4825. Distant resistance follows at 1.4885.
Immediate support remains at 1.4690. This is followed by 1.4640, 1.4570 and 1.4520. A break below 1.4470 would infer a test of the distant support at 1.4390.
Oscillators are rising.
NEAR-TERM: Mixed with downside risk
Dollar/yen remains under pressure after sinking to its lowest levels seen since November 27. The selling pressure should continue.
Initial support comes at 108.25. This is followed by 107.95 from a 50-point pivot that targets 107.45 and 108.45. Then, there is a pivot low at 107.22.
Immediate resistance is at 109.15 from a 50-point pivot, which targets 109.65 and 108.65. Above 110.05 there is further resistance at 110.35 from another 50-point pivot that targets 109.85 and 110.85.
Oscillators are falling.
NEAR-TERM: Slightly bearish
MEDIUM-TERM: Mixed to slightly bearish
Sterling/dollar remains under selling pressure as well after sinking to a new 4 Â½-month low on Friday. Cable should now consolidate at lower levels.
Immediate support comes at 1.9653 from a pivot low. Further support is at 1.9555...
Initial resistance is still in place at 1.9800. This is followed by 1.9900 and 1.9945. Distant resistance follows at 2.0000.
Oscillators are sliding.
NEAR-TERM: Mixed to slightly bearish
Dollar/Swiss fell further on Friday, reaching its lowest level since November 27. The overall pressure should continue, but in the short term there is upside risk because the pair is oversold.
Initial resistance remains at 1.1160. The next level is 1.1250. Distant resistance comes at 1.1330.
Immediate support is seen at 1.1020. Below 1.0890 from a pivot low, a distant support is now pegged at 1.0760.
Oscillators are declining.
NEAR-TERM: Mixed with upside risk
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