Wednesday June 14, 2006 - 13:04:36 GMT
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Daily Forex Market Commentary for June 14, 2006
Wednesday, June 14, 2006 8:00 GMT
Daily Forex Market Commentary
By: Cornelius Luca, Currencies Analyst, GFT
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The dollar marched higher, as expected, amid sliding commodity prices and neutral US data. Following some early pullback, expect more strength for the US currency, as the CPI reading should not be divergent from the PPI report. But keep some tight rolling stops.
Euro/dollar sank to a new 1 Â½-month low on Tuesday and the selling pressure should continue. Itâ€™s mildly oversold, so we need confirmation if this decline will persist without a correction.
Below 1.2520, good support is now seen only at 1.2420. Distant support lies at 1.2300.
Immediate resistance is at 1.2585. Above 1.2630, resistance is seen at 1.2700, which is a major level. Distant resistance is at 1.2760
Oscillators are declining.
Dollar/yen surged on Tuesday to the highest level since April 24, adding further confidence to a bull flag, which targets 116.40.
Key resistance is at 115.50 from a 50-point pivot that targets 116.00 and 115.00. Above 116.20, distant resistance follows at 117.70.
Below 115.00, support is seen at 114.60. Strong support is pegged at 114.20 from a 50-point pivot that targets 113.70 and 114.70.
Oscillators are rising.
Sterling/dollar fell on Tuesday to its lowest levels in 1 Â½ month and the selling pressure should persist.
Initial support is at 1.8260. Distant support lies at 1.8180.
Immediate resistance is at 1.8370. Only a break above 1.8450 would jeopardize the decline and the pair would test 1.8500. If this level gives way, look for a break above 1.8550, but this is unlikely.
Oscillators are falling.
Dollar/Swiss franc rallied to its highest levels in 1 Â½ month and this general strength should continue.
Initial resistance is seen at 1.2445. Above 1.2490, resistance is now seen at 1.2570.
Immediate support is at 1.2365. Below 1.2300 the pair has support at 1.2255. This level is strong and must hold if this recovery can continue.
Oscillators are rising.
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