Friday March 3, 2006 - 13:53:35 GMT
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Daily Forex Market Commentary - 3/3/2006
Daily Forex Market Commentary
Friday, March 03, 2006 8:00 GMT
By: Cornelius Luca, Currencies Analyst, GFT
Learn more about Global Forex Trading (GFT)
The dollar collapsed against the euro, as the ECB hiked rates by 25 basis points to 2.5 percent and Germany posted strong retail sales. The franc followed euroâ€™s lead, but not the pound. Dollar/yen made little progress. Expect the euro crosses to slip slightly on profit taking today.
Euro/dollar surged unexpectedly on Thursday after the ECB made the expected rate tightening. But between another nice bit of evidence that the Eurozone is showing signs of strength and talk of central bank demand, the pair surged to a one-month high. The rally is prodding the resistance of a former trendline resistance, now at 1.2045, and this level must give way on a closing basis to assure further strength.
There is good resistance nearby at 1.2060. Above 1.2075 there is resistance at 1.2150. Distant resistance is at 1.2240.
Initial support is at 1.1980. Strong support is then seen at 1.1920. Distant support comes from a pivotal low at 1.1770.
Oscillators are rising.
NEAR-TERM: Mixed to slightly bullish
MEDIUM-TERM: Slightly bearish
Dollar/yen saw the expected recovery early on Thursday, and then reversed these gains, as consolidation persists. The pair should recover today.
Immediate resistance is at 116.85 from a 50-point pivot, which targets 116.35 and 117.35. Distant resistance is at
Initial support is at 11635. Below 115.70 the pair has strong support at 115.50 from another 50-point pivot that targets 115.00 and 116.00.
Oscillators are mixed.
NEAR-TERM: Mixed to slightly bullish
MEDIUM-TERM: Slightly bullish
Sterling/dollar made the expected slide early on Thursday, and then reversed all of these losses to close higher. Expect mixed trading today, with cues coming from the overbought euro/sterling cross.
Immediate resistance is pegged at 1.7570. The pound has strong resistance at 1.7592 and at 1.7630. Distant resistance is at 1.7685.
Initial support is seen at 1.7500. Below 1.7460 the pair has support at 1.7400. Distant support is at 1.7279.
The oscillators are rising.
The dollar/Swiss franc fell sharply on Thursday, as it reflected euro/dollarâ€™s strength. The aggressive slide alleviated the short-term overbought condition. The pair should bounce on profit taking before any further weakness is seen.
Below 1.2970, support is at 1.2935.Strong support is then seen at 1.2880.
Initial resistance is at 1.3040. Above 1.3080 there is resistance at 1.3140. Pivotal resistance remains at 1.3236.
Oscillators are falling.
NEAR-TERM: Mixed to slightly bearish
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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