Tuesday February 21, 2006 - 14:06:53 GMT
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Daily Forex Market Commentary - 2/21/2006
Daily Forex Market Commentary
Tuesday, February 21, 2006 8:00 GMT
By: Cornelius Luca, Currencies Analyst, GFT
Learn more about Global Forex Trading (GFT)
The dollar slipped versus the pound and the Swiss but marked time against the euro and the yen in thin holiday. The risk remains on the downside for the US currency.
Euro/dollar hit a 10-day high on Monday before paring gains. It should try another rally today.
Immediate resistance remains 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 treaded water on Monday. 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 a recovery made a mild recovery on Monday but remained stuck in an inside range. Expect pressure on the upside today.
Immediate resistance is pegged at 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.
Dollar/Swiss franc made the expected decline on Monday and it should head lower more today before resuming its uptrend.
Immediate support is seen at 1.3025. 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.
Initial resistance is at 1.3100. 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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