Friday February 17, 2006 - 14:51:43 GMT
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Daily Forex Market Commentary - 2/17/2006
Daily Forex Market Commentary
Friday, February 17, 2006 8:00 GMT
By: Cornelius Luca, Currencies Analyst, GFT
Learn more about Global Forex Trading (GFT)
The dollar trimmed early losses on Thursday despite strong reports on housing starts and from the Philly Fed. The overall outlook is positive, but the US currency should encounter some weakness on profit taking on Friday.
Euro/dollar made a new 1 Â˝-month low of 1.1848 early on Thursday before trimming losses, so the short-term downtrend remains on track. With the pair below the trendline rising since early December, expect further weakness. But donâ€™t hope for a slide.
Immediate resistance is still seen at 1.1910. Above 1.1980, expect resistance at 1.2060. The next level is stacked at 1.2105.
Initial support remains pegged to the 1.1850 area. Below this level further support is still seen at 1.1805. Distant support is at 1.1760.
Oscillators are falling.
MEDIUM-TERM: Slightly bearish
Dollar/yen struggled higher on Thursday but was reigned in by the 118.25 Gann level. The pair should consolidate further today.
Initial resistance remains at 118.25 from a 50-point pivot, which targets 117.75 and 118.75. Above 119.38, the pair retains good resistance at 119.65 from a 50-point pivot, which targets 119.15 and 120.15.
Below 117.40, the pair has support at 117.10 and 117.10. The next level is 116.85 from another 50-point pivot, which targets 116.35 and 117.35.
Oscillators are mixed.
MEDIUM-TERM: Slightly bullish
Sterling/dollar reduced Thursdayâ€™s losses after failing to reach Tuesdayâ€™s 1 Â˝-month low of 1.7279. This weakness bodes well for the overall negative outlook, but some recovery should be seen first.
Initial support is now seen at 1.7330. Thatâ€™s followed by 1.7300. Below 1.7279 the pair has support at 1.7243. Next support is at 1.7243. Further support lies at 1.7185.
Initial resistance is pegged at 1.7440. Next level is 1.7487. Above 1.7525, the pound has strong resistance at 1.7570.
The oscillators are declining.
Dollar/Swiss franc reversed early gains to close unchanged. It should now head lower before resuming its uptrend.
Immediate support remains at 1.3065. 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.
Above 1.3153, dollar/Swiss franc has pivotal resistance at 1.3200. Distant resistance is at 1.3280.
Oscillators are rising.
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.
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