Friday March 17, 2006 - 14:28:47 GMT
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Daily Forex Market Commentary - 3/17/2006
Daily Forex Market Commentary
Friday, March 17, 2006 8:00 GMT
By: Cornelius Luca, Currencies Analyst, GFT
Learn more about Global Forex Trading (GFT)
The dollar made a collapsing decline on Thursday, extending its significant losses made throughout this week. On the day, traders used the pretext of the weak US housing and low CPI reports to dump the US currency, and the weak Philly Fed reading didnâ€™t help either. Expect more strength today, but some profit taking is due as well â€“ perhaps later in the day.
Euro/dollar surged to an over 1 Â˝-month high of 1.2188. It should now give back some of the gains before a new rally may be attempted.
Initial support is at 1.2125 and this level will probably hold. If it breaks, then the euro/dollar is on its way for a test if the good support at 1.2060. The next level is 1.2000.
Above the 1.2188 pivotal high, resistance is seen at 1.2236. Distant resistance looms at 1.2322.
Oscillators are rising.
MEDIUM-TERM: Slightly bearish
Dollar/yen failed its early recovery on Thursday and fell to a 10-day low of 116.55. Expect some limited recovery today before any more weakness can be seen. .The key level is 116.85 from a 50-point pivot, which targets 116.35 and 117.35.
Initial resistance is seen at 117.40. Strong resistance remains 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 35. Thatâ€™s followed by 116.10 and 115.44.
Oscillators are falling.
Sterling/dollar marched higher to a 10-day high of 1.7593. The oversold pair should slip initially on profit taking before attempting another rally.
Initial support is seen at 1.7500. Thatâ€™s followed by 1.7460 and 1.7370. Below 1.7320 there is a pivotal low at 1.7229, but donâ€™t expect to see it touched today.
Above 1.7593 resistance is pegged at 1.7630. The pound has distant resistance at 1.7795.
The oscillators are rising.
Dollar/Swiss franc fell sharply again on Thursday and reached a 1 Â˝-month low. After a corrective bounce, the pair should attempt to slip further.
Initial resistance is at 1.2940. The next barrier is 1.2995. Above 1.3055, further resistance looms at 1.3105.
Immediate support is at 1.2869. Thatâ€™s followed by 1.2815. Distant support is now seen at 1.2700.
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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