Wednesday June 28, 2006 - 12:54:45 GMT
Share This Story
GFT - www.gftforex.com
Daily Forex Market Commentary for June 28, 2006
Wednesday, June 28, 2006 8:00 GMT
Daily Forex Market Commentary
By: Cornelius Luca, Currencies Analyst, GFT
Visit GFT to learn more
The dollar consolidated quietly on Tuesday after the wild action of the past three days. The market ignored news about the US housing slowdown and the strong German Ifo report, as all eyes are on Thursdayâ€™s rate hike.
Euro/dollar rallied sharply on Monday to wipe out Fridayâ€™s losses. The pair remains in a downtrend, but the candles point to a bullish reversal. Euro/dollar must quickly stall and turn down if the negative outlook remains in place.
Strong resistance is pegged between 1.2600 and 1.2610. This area is important and if itâ€™s surpassed, then the downtrend is in grave danger Next strong resistance is at 1.2660, and a close above it would signal the formation of a double bottom. Above, there is the magic level at 1.2700.
Important support is at 1.2520. A close below it would signal a test of the support at 1.2455 from a decent Fibonacci retracement level.
Oscillators are falling.
Dollar/yen made a mild pullback on Monday after surging for two days before and got stuck in an inside range. The market will try to extricate it from it, not sure Tuesday will be the successful day.
Key resistance remains from a 50-point pivot at 116.85 from another 50-point pivot, which targets 116.35 and 117.35. The later target also houses the resistance declining since December.
Immediate support is at 116.00. Below 115.75, look for a possible floor at 115.50, which targets 116.00 and 115.00.
Oscillators are mixed.
Sterling/dollar made a mild recovery on Monday after falling sharply on Friday as it failed to re-test the 50% mark of the April-May uptrend at 1.8137. The pair got stuck in an inside range. It must resume its decline quickly or risk trading sideways.
Initial resistance is still seen at 1.8280. A close above 1.8320 would signal that a forming bearish flag was wrong.
Initial support is at 1.8190. Below 1.8137 there is little strong support ahead of 1.7970 and 1.7930, but some interim support looms at 1.8060 and 1.8000.
Oscillators are declining.
Dollar/Swiss franc mirrored the euro and fell sharply on Monday after rallying on Friday. The recovery occurred after the pair failed to take out the 50 percent retracement at 1.2558. This level must give way on a closing basis if the rally can continue.
Below 1.2390, support is now seen at 1.2320. The next level is 1.2210 from a Fibonacci retracement level.
Immediate resistance is at 1.2480. Above 1.2558, resistance is at 1.2670. Strong resistance follows at 1.2708 from a Fibonacci retracement level.
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.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."