Wednesday February 22, 2006 - 14:00:49 GMT
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Daily Forex Market Commentary - 2/22/2006
Daily Forex Market Commentary
Wednesday, February 22, 2006 8:00 GMT
By: Cornelius Luca, Currencies Analyst, GFT
Learn more about Global Forex Trading (GFT)
The dollar was all over the place on Tuesday, making the expected decline versus the pound, closing unchanged against the franc and climbing versus the yen and euro. Traders ignored news that the Fed believes that the last increase in rates brought borrowing costs near at the neutral levels and agreed that future moves would be data-driven.
One day after hitting a 10-day high, euro/dollar tumbled for a little while before trimming losses. The market is not very clear now, but the bias seems to be on the downside.
Below 1.1890, support is pegged to the 1.1850 area.Distant support is at 1.1785.
Immediate resistance is at 1.1940. Good 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.
Oscillators are falling.
MEDIUM-TERM: Slightly bearish
Dollar/yen rallied to a two-week high of 118.98 on Tuesday but the immediate outlook remains mixed.
Above 119.38, the pair retains good resistance at 119.65 from a 50-point pivot, which targets 119.15 and 120.15.
Initial support shifted to 118.25 from a 50-point pivot, which targets 117.75 and 118.75.
Below 117.40, the pair has support at 117.10 and 117.10. Distant support is 116.85 from another 50-point pivot, which targets 116.35 and 117.35.
Oscillators are mixed.
MEDIUM-TERM: Slightly bullish
Sterling/dollar marched higher for the third consecutive day on Tuesday, just as expected.
Immediate resistance is still pegged at 1.7487. Above 1.7525, the pound has strong resistance at 1.7570.
Initial support remains 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 saw more action during the holiday on Monday than on Tuesday. The pair should still encounter some weakness before resuming its uptrend.
Good support is still 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 1.3110. 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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