Friday October 27, 2006 - 17:38:36 GMT
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Daily Forex Market Commentary for October 27, 2006
Forex Market Commentary for October 27, 2006
GFT Daily Forex Market Commentary by Cornelius Luca
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The dollar fell further on Thursday on liquidation of long position. The durable goods orders report was strong only on surface, but that only accelerated the decline. Following some brief consolidation, the US currency should encounter more weakness.
Euro/dollar rallied to a near three-week high on Thursday and is approaching the top of its declining channel. This should be the limit of the upmove for now.
Initial resistance is at 1.2715 from this trendline. If this level snaps, then expect a test of the further resistance at 1.2765. There is pivotal resistance at 1.2829.
Immediate support is at 1.2655. Next level is 1.2590. Distant support is at 1.2520 breaks.
Oscillators are rising.
NEAR-TERM: Mixed with bullish bias
Dollar/yen fell further on Thursday and is approaching the key support at 118.25. Only a break below it would warrant further losses.
So, the pair has support at 118.25 from a 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
Above 118.75, strong resistance remains at 119.65 from a 50-point pivot that targets 119.15 and 120.15.
Oscillators are declining.
NEAR-TERM: Mixed with bearish bias
MEDIUM-TERM: Slightly bullish
Sterling/dollar advanced further on Thursday and reached a one-month high. The aggressive rally proved that the upside was not fairly limited after all. However, it is approaching significant resistance.
It smashed a pivotal high at 1.8858 and now has resistance at 1.8955. Further resistance is seen at 1.9020 and then at a distant 1.9074.
Immediate support is at 1.8860. Further supports are at 1.8800 and 1.8750. Distant support is at 1.8673.
Oscillators are rising.
NEAR-TERM: Mixed to slightly bullish
MEDIUM-TERM: Slightly bearish
Dollar/Swiss fell to a one-month low on Thursday. It would now take a convincing break below 1.2515 to warrant a further decline.
Below 1.2515, dollar/Swiss franc has support at 1.2430 and 1.2400. Further support is at 1.2355 and 1.2290.
Above 1.2587, the pair has resistance at 1.2660. There are pivotal highs at 1.2700 and 1.2770. Distant resistance is at 1.2818.
Oscillators are falling
NEAR-TERM: Mixed to slightly bearish
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.
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