Friday June 9, 2006 - 13:11:49 GMT
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Daily Forex Market Commentary for June 9, 2006
Friday, June 09, 2006 8:00 GMT
Daily Forex Market Commentary
By: Cornelius Luca, Currencies Analyst, GFT
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The dollar exploded higher on Thursday on ongoing expectations for more rate tightening in the US, decent weekly jobless claims and on news that the leader of al-Qaeda in Iraq, al-Zarqawi, was killed. The outlook should remain guardedly positive, but a pull back is likely after the release of the US trade deficit, which should worsen.
The euro/dollar broke and closed below the strong support at 1.2695, hitting a one-month low and forming a double top, which targets 1.2405.
Below 1.2625, support is now seen at 1.2600. Next supports are at 1.2555 and 1.2520. Distant support is pegged at 1.2420.
Immediate resistance is at 1.2700. Above 1.2760, resistance is seen at 1.2840.
Oscillators are declining.
NEAR-TERM: Marginally higher
Dollar/yen rallied to its highest level since April 27 and reached the upside target of the 114.20 Gann pivot. It should see a minor pullback before resuming its upmove. Key level
is pegged at 114.20 from a 50-point pivot that targets 113.70 and 114.70.
Above 114.70, resistance lies at 115.50.
Below 113.70, strong support remains at 112.90 from a 50-point pivot, which targets 113.40 and 112.40.
Oscillators are rising.
Sterling/dollar fell for the fourth consecutive day and hit a on-month low on Thursday.
Below 1.8368, support is now seen at 1.8260. Distant support lies at 1.8180.
Immediate resistance is at 1.8450. Thatâ€™s followed by 1.8500. If this level gives way, look for a break above 1.8550 and an unlikely test of 1.8650.
Oscillators are falling.
Dollar/Swiss franc rallied to a one-month high and hit the top of its rising channel. Following a brief pullback, it should resume its upmove.
Initial resistance is at 1.2365. Above 1.2400, resistance is now seen at 1.2490.
Immediate support is at 1.2280. Below 1.2240 there is support at 1.2180. There is a strong level at 1.2060.
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.
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