Thursday March 23, 2006 - 16:26:06 GMT
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Daily Forex Market Commentary for March 23, 2006
Daily Forex Market Commentary
Thursday, March 23, 2006 8:00 GMT
By: Cornelius Luca, Currencies Analyst, GFT
Learn more about Global Forex Trading (GFT)
The dollar made new highs across the board on Wednesday, but retained gains only against the European currencies, while closing slightly lower versus the yen. The initial momentum is only mildly bullish, but itâ€™s more likely that the US currency will then stall and slip on short-term profit taking.
The euro/dollar fell further on Wednesday, albeit at a reduced pace, and failed once again to erase its significant gains made last Thursday. The pair should now attempt to stabilize and struggle higher.
Initial support is seen at 1.2040. If it breaks, then the euro/dollar is on its way for a test if the good support at 1.2000. The next levels are 1.1940 and 1.1900. Distant support comes from a pivotal low at 1.1859.
Immediate resistance is at 1.2100. Good resistance remains at 1.2135. Above 1.2165, resistance is seen at 1.2210. Distant resistance looms at 1.2270.
Oscillators are mixed.
Dollar/yen made only a brief upmove in early Wednesday trading and then resumed its decline. Expect more losses today.
The pair has immediate support at 116.85 from a 50-point pivot, which targets 116.35 and 117.35. Good support follows at 116.00. Distant support remains at 115.50 from a 50-point pivot.
Immediate resistance is at 117.40. Above 117.70, strong resistance follows at 118.25 from a 50-point pivot that targets 117.75 and 118.25.
Oscillators are mixed.
Sterling/dollar closed lower on Wednesday, but remained well within Tuesdayâ€™s range, which means that it also remained confined to an inside range for the fourth consecutive day. The pair should still slip further on profit taking before attempting another rally.
Initial support is still seen at 1.7415. Thatâ€™s followed by 1.7370. Below 1.7320 there is a pivotal low at 1.7229, but donâ€™t expect to see it touched today.
The oscillators are mixed.
Immediate resistance is at 1.7480. The next barrier is 1.7550. Above 1.7593, resistance remains pegged at 1.7630. The pound has distant resistance at 1.7795.
Dollar/Swiss franc was the exception to the rule, as it marched further up and held on to its gains on Wednesday Once again, it should attempt to add to this recovery before any further bout of weakness can be seen.
Good resistance is at 1.3120. Above 1.3165, there is a pivotal high at 1.3236.
Below 1.3050, good support is at 1.3020. If this level gives way, then dollar/Swiss franc is on its way to bigger decline and should test the 1.2950 area. Thatâ€™s followed by 1.2895. Distant support remains at 1.2815.
Oscillators are mixed.
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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