Thursday February 23, 2006 - 14:14:05 GMT
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Daily Forex Market Commentary - 2/23/2006
Daily Forex Market Commentary
Thursday, February 23, 2006 8:00 GMT
By: Cornelius Luca, Currencies Analyst, GFT
Learn more about Global Forex Trading (GFT)
The dollar peaked around the release of the huge US CPI report early on Wednesday and then trimmed its gains versus the European currencies. Meanwhile, dollar/yen marked time. Mixed trading should continue and the bias for the dollar is on the upside.
The downside bias panned out well on Tuesday, when euro/dollar spiked down to 1.1859 before trimming losses. The pair came close to making a new low for the downtrend, but no cigar! Look for some consolidation before the next move down â€“ perhaps the Ifo report can be the trigger.
Below 1.1890, support is still pegged to the 1.1850 area.Distant support is at 1.1770.
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
One day after rallying to a two-week high of 118.98, dollar/yen only consolidated in an inside range. 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 remains at 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 slumped lower on Wednesday but managed to recoup most of its losses. It must stay below 1.7470 if the weakness can resume.
SO, Immediate resistance is pegged at 1.7470. 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 rallied on Wednesday but then reduced its gains. The pair should still encounter some weakness before resuming its uptrend.
Immediate support is at 1.3075. 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 1.3160. Above this level, 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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