Thursday March 16, 2006 - 13:57:57 GMT
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Daily Forex Market Commentary for March 16, 2006
Daily Forex Market Commentary
Thursday, March 16, 2006 8:00 GMT
By: Cornelius Luca, Currencies Analyst, GFT
Learn more about Global Forex Trading (GFT)
The oversold dollar saw only a mild and short-lived reprieve early on Wednesday before reversing gains and making another collapsing decline on Wednesday. Following some corrective bounce the US dollar should encounter further weakness.
Euro/dollar saw very little pullback in early trading on Wednesday and then rallied to close at the highest level in 1-Â˝ months. It should now give back some of the gains before another rally may be attempted.
Initial support is at 1.2035 and this level will probably hold. If it breaks, then the euro/dollar is on its way for a test if the good supports at 1.1975 and 1.1945. The next level is 1.1900.
Above the 1.2093 pivotal high, resistance is seen at 1.2135. Distant resistance looms at 1.2225
Oscillators are rising.
MEDIUM-TERM: Slightly bearish
Dollar/yen failed its early recovery just below 117.80 and then reversed gains to close down on Wednesday as well. Expect some limited recovery today before any more weakness can be seen.
Initial resistance at 117.75. 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 116.85 from a 50-point pivot, which targets 116.35 and 117.35.
Oscillators are falling.
MEDIUM-TERM: Slightly bullish
Sterling/dollar made the expected decline in early trading on Wednesday and then reversed these losses to close higher again. The oversold pair should slip initially on profit taking before attempting another rally.
Initial support remains 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 1.7495 resistance is still pegged at 1.7530. The pound has distant resistance at 1.7630.
The oscillators are rising.
Dollar/Swiss franc fell sharply again on Wednesday. After a corrective bounce, the pair should attempt to slip further.
Initial resistance is at 1.2980. The next barrier is 1.3050. Further resistance looms at 1.3100.
Immediate support is at 1.2890. Distant support is now seen at 1.2815.
Oscillators are edging 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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