Thursday March 9, 2006 - 15:36:08 GMT
Share This Story
GFT - www.gftforex.com
Daily Forex Market Commentary - 3/9/2006
Daily Forex Market Commentary
Thursday, March 09, 2006 8:00 GMT
By: Cornelius Luca, Currencies Analyst, GFT
Learn more about Global Forex Trading (GFT)
On Wednesday, the dollar saw the expected consolidative day. It should experience more of the same today before the US currency will attempt to resume its upmove.
Euro/dollar made a weak recovery on Wednesday after collapsing in the previous day. Once again, the market is inclined to see more weakness, but Thursday should see more consolidation.
Good support is pegged at 1.1868. A break below pivotal low at 1.1824 would add further confidence to the negative outlook. Next key supports are still seen at 1.1780 and 1.1705.
Resistance is pegged at 1.1960. Above 1.1990, resistance is seen at 1.2045. A test of the 1.2093 pivotal high is very unlikely to be seen today.
Oscillators are falling.
MEDIUM-TERM: Slightly bearish
Dollar/yen recovered its overnight losses on Wednesday, but when the dust settled, it only mimicked the previous dayâ€™s range. This could be the precursor of a breakout, but the direction uncertain. Anyone ready for some strangles?
Strong resistance remains at 118.25 from a 50-point pivot, which targets 117.75 and 118.75.It will be very hard to break and close above 118.75.
The pair retains immediate support at 117.50. Strong support is then seen at 116.85 from a 50-point pivot, which targets 116.35 and 117.35. Distant support follows at 115.90
Oscillators are mixed.
MEDIUM-TERM: Slightly bullish
Sterling/dollar traded sideways on Wednesday after collapsing on Tuesday, and got stuck in an inside range. Expect further consolidation today.
Below 1.7325, support is still seen at 1.7295 from a trendline support. If this line breaks, then look for a test of 1.7240 and 1.7200. Distant support is at 1.7128.
Immediate resistance is pegged at 1.7415. Then, there are barriers at 1.7435, 1.7465, and 1.7500. A pivotal high remains in place at 1.7623.
The oscillators are slipping.
Wednesday was only a consolidation day for the dollar/Swiss franc, as expected, but the overall outlook remains positive. Wednesday should see more sideways trading within an inside range.
Initial resistance is at 1.3145. The next level follows at1.3175. Above the 1.3236 pivotal high there is resistance only at 1.3320.
Support is now seen at 1.3055. Only a break below 1.3000 would signal some sustained weakness. Strong support is then seen at 1.2940.
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.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."