Monday February 27, 2006 - 15:14:45 GMT
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Daily Forex Market Commentary - 2/27/2006
Daily Forex Market Commentary
Monday, February 27, 2006 8:00 GMT
By: Cornelius Luca, Currencies Analyst, GFT
Learn more about Global Forex Trading (GFT)
The dollar held its own on Friday versus the European currencies, despite the pseudo-weak US data and the failed terrorist attack in Saudi Arabia. Dollar/yen sank further on expectations that the Bank of Japan will start moving away from its zero percent levels.Expect most action on the crosses, with the European currencies in the lead. Keep an eye on the US housing data.
Euro/dollar closed on Friday on a very weak note and spells some trouble, but choppy trading is favored.
Below 1.1840, support is seen at 1.1805. Distant support is at 1.1725.
Immediate resistance is at 1.1920. Good resistance remains between 1.1980 and 1.2000.
Oscillators are mixed.
MEDIUM-TERM: Slightly bearish
Dollar/yen collapsed further on Friday on news that the ZIRP is about to end before trimming losses. Expect more choppy to lower trading this week.
The pair has support at 116.85 from a 50-point pivot, which targets 116.35 and 117.35.
Immediate resistance is at 117.40. Strong resistance is at 118.25 from a 50-point pivot, which targets 117.75 and 118.75. Further resistance is at 119.38.
Oscillators are mixed.
MEDIUM-TERM: Slightly bullish
Sterling/dollar made the expected choppy upmove last week. The pair is approaching the tip of a triangle, so expect choppy trading and breakout attempts, more likely on the upside.
Initial support is seen at 1.7400. Below 1.7373 the pair has support at 1.7320.
Immediate resistance is pegged at 1.7510. Above 1.7560, the pound has strong resistance at 1.7620 and 1.7655.
The oscillators are rising.
Dollar/Swiss franc made a strong rally on Friday, reaching a new high for its upmove and signaling more strength. The only risk comes from the Middle East mess.
Initial resistance is at 1.3200. Next resistance is at 1.3280.
Immediate support is at 1.3120. Strong support is then seen at 1.3040. Below 1.2990 there is support at 1.2900.
Oscillators are rising.
NEAR-TERM: Mixed to slightly higher
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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