Tuesday October 24, 2006 - 12:53:24 GMT
Share This Story
GFT - www.gftforex.com
Daily Forex Market Commentary for October 24, 2006
Forex Market Commentary for October 24, 2006
GFT Daily Forex Market Commentary by Cornelius Luca
Visit GFT to learn more
The dollar made an explosive and unexpected rally on Monday, which suggests that some large position was set. The slide erased Thursday's losses but is nt that clear the rally may continue. If you are long, hold the postion with a tight step because the dollar is mire likely to trade sideways today.
Euro/dollar made an aaggressive decline on Monday that took the market by surprise. Howver, only a break below 1.2520 would warrant further losses.
If 1.2520 snaps, expect the euro/dollar to challenge 1.2490. That could lead to a test of the pivotal low at 1.2460.
Initial resistance is at 1.2580. Above 1.2650, resistance is seen at 1.2710. Strong resistance is then seen at 1.2765, but the pair should not challenge it.
Oscillators are declining.
NEAR-TERM: Mixed with bearish bias
Dollar/yen surged to a one-week high on Monday and if it can hold its own today, it will approach significant high levels.
Strong resistance is at 119.65 from a 50-point pivot that targets 119.15 and 120.15. If the defense of the KO options at 120 is somehow surpassed, expect heavy hunting for stop-loss orders. Above 120.15, resistance is seen at 120.50.
Below 119.00, dollar/yen has support at 118.25 by another 50-point pivot that targets 117.75 and 118.75. Distant support is at 116.85 by a 50-point pivot, which targets 116.35 and 117.35
Oscillators are rising.
NEAR-TERM: Mixed to slightly bullish
MEDIUM-TERM: Slightly bullish
Sterling/dollar fell hard enough on Monday to erase Friday's gains and some of Thursday's as well. It trimmed some of the losses by the close, which suggests at least some consolidation today.
Immediate support is at 1.8685. That is followed by 1.8660 and 1.8605. Distant support is at 1.8514.
Above 1.8755, resistance is now seen at 1.8795. A pivtoal level lies at 1.8858.
Oscillators are declining.
MEDIUM-TERM: Slightly bearish
Dollar/Swiss rallied sharply and unexpectely on Monday to erase most of the losses made on Thursday. It would take a break above 1.2700 to convince us that this upmove has legs.
Above 1.2700, the pair has a pivotal high at 1.2770. Further resistance is at 1.2818.
Below 1.2630, dollar/Swiss franc has support at 1.2582. Only a break below 1.2525 would signal aggressive weakness and a test of 1.2470.
Oscillators are mixed
MEDIUM-TERM: Mixed to slightly bullish
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."