Wednesday March 15, 2006 - 14:00:30 GMT
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Daily Forex Market Commentary for March 15, 2006
Daily Forex Market Commentary
Wednesday, March 15, 2006 8:00 GMT
By: Cornelius Luca, Currencies Analyst, GFT
Learn more about Global Forex Trading (GFT)
The dollar made a collapsing decline on Tuesday, which exceeded expectations. The slide was accelerated by a pseudo-weak retail sales report and a letter forecasting fewer rate hikes in the US. The US dollar is now oversold in the short term, so it should see some reprieve.
Euro/dollar surged to an eight-day high of 1.2030 on Tuesday. It should now give back some of the gains before another rally may be attempted.
Initial support is at 1.1980. Good support is then pegged at 1.1945. The next level is 1.1900. A break below pivotal low at 1.1860 would signal the resumption of the upmove.
Above 1.2030, resistance is seen at 1.2060. A test of the 1.2093 pivotal high is very unlikely to be seen today.
Oscillators are rising.
MEDIUM-TERM: Slightly bearish
Dollar/yen collapsed on Tuesday to 117.24. Expect some limited recovery today.
It should consolidate above this low and turn to test the initial resistance at 118.00. The next level is at 118.25 from a 50-point pivot, which targets 117.75 and 118.75. There is a pivotal top at 119.38, but donâ€™t expect so much strength.
The pair has strong support at 117.24. The next support is at 116.85 from a 50-point pivot, which targets 116.35 and 117.35.
Oscillators are falling.
MEDIUM-TERM: Slightly bullish
Sterling/dollar surged to 1.7482 on Tuesday. Only after slipping on profit taking will the pair attempt to climb further up.
Initial support is at 1.7435. Thatâ€™s followed by 1.7380 and 1.7345. There is an initial pivotal low at 1.7229, but donâ€™t expect to see it touched today.
Above 1.7482 resistance is pegged at 1.7530. The pound has distant resistance at 1.7630.
The oscillators are rising.
Dollar/Swiss franc fell sharply on Tuesday. After a corrective bounce, the pair should attempt to slip further.
Initial resistance is at 1.3060. The next barrier is 1.3100. Further resistance looms at 1.3170.
Immediate support is at 1.3005. Once again, only a close below 1.2980 would signal an acceleration of the decline and the pair would challenge the support at 1.2890.
Oscillators are edgng lower.
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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