Monday February 20, 2006 - 19:57:26 GMT
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Daily Forex Market Commentary - 2/20/06
Daily Forex Market Commentary
Monday, February 20, 2006 8:00 GMT
By: Cornelius Luca, Currencies Analyst, GFT
Learn more about Global Forex Trading (GFT)
The European currencies recovered losses against the dollar on Friday following a very weak U of Mich report. Mondayâ€™s trading should be quiet, but the charts suggest some dollar weakness.
Euro/dollar reversed early losses on Friday and ended in the plus. It should try to pad its gains today.
Immediate resistance is between 1.1980 and 1.2000. Next resistances are stacked at 1.2060 and 1.2105. Distant resistance then remains at 1.2205.
Below 1.1900, support is pegged to the 1.1850 area.
Oscillators are falling.
MEDIUM-TERM: Slightly bearish
Dollar/yen rallied to a one-week high on Friday and reached the upside target of the 118.25 Gann level before giving up more than half of its gains. The pair should consolidate today in thin trading.
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 made the expected recovery but didnâ€™t get too far. Expect consolidation today.
Immediate resistance is pegged at 1.7450. Next level is 1.7487. Above 1.7525, the pound has strong resistance at 1.7570.
Initial support is seen at 1.7400. The next level is 1.7340. 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.
The oscillators are declining.
Once again, dollar/Swiss franc reversed early gains to close unchanged on Friday. 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 1.3172, 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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