Tuesday February 14, 2006 - 13:52:51 GMT
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Daily Forex Market Commentary - 2/14/2006
Daily Forex Market Commentary
Tuesday, February 14, 2006 8:00 GMT
By: Cornelius Luca, Currencies Analyst, GFT
The dollar made new highs for the uptrend against the European currencies before trimming gains to close unchanged on Monday. Meanwhile, dollar/yen slipped in unexciting trading. The dollar should attempt today to climb higher, particularly against the European currencies.
Euro/dollar slipped to a new five-week low of 1.1876 early on Monday before paring losses and closing unchanged. The pair remains below the trendline rising since early December, so expect further weakness this week. But in the short term, it should edge higher.
Initial support is pegged to the 1.1850 area. Below this level further support is seen at 1.1805.
Immediate resistance remains at 1.1930. Above 1.1980, expect resistance at 1.2060. The next one is 1.2105.
Oscillators are falling.
NEAR-TERM: Mixed to slightly bearish
MEDIUM-TERM: Slightly bearish
Dollar/yen slipped on Monday but remained in an inside range. The pair should consolidate further today.
The pair has support at 117.25. The following area of interest is 117.00. Next level is 116.85 from another 50-point pivot, which targets 116.35 and 117.35.
Initial resistance is at 117.90. Good resistance follows at 118.25 from a 50-point pivot, which targets 117.75 and 118.75. and thatâ€™s followed by 118.90. Above 119.38, the pair retains good resistance at 119.65 from a 50-point pivot, which targets 119.15 and 120.15.
Oscillators are mixed.
NEAR-TERM: Mixed to slightly bearish
MEDIUM-TERM: Slightly bullish
Sterling/dollar made the expected decline early on Monday and reached a new low for the downtrend at 1.7360. It closed unchanged and this suggests a minor recovery today. The overall outlook remains negative.
Initial resistance is pegged at 1.7460. Next level is 1.7530. Above 1.7590, the pound has strong resistance at 1.7655.
Below 1.7360 the pair retains support at 1.7320. Next support is at 1.7243.
The oscillators are declining.
Dollar/Swiss franc reached a new high for the uptrend at 1.3102 in early trading but then slipped to close unchanged. Expect another rally later this week.
If 1.3100 gives way for good, then look for dollar/Swiss franc to reach the target of the second flag at 1.3135. Next resistance is at 1.3280.
Immediate support is at 1.3040. Below 1.2990 there is support at 1.2900. Only a close below 1.2840 would signal an acceleration of the decline and the pair would challenge the support at 1.2735.
Oscillators are rising.
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