Tuesday November 7, 2006 - 14:27:14 GMT
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Daily Forex Market Commentary for November 7, 2006
Daily Market Commentary for November 7
GFT Daily Forex Market Commentary by Cornelius Luca
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The dollar made weak upmove above on Monday versus all the majorts except for the euro, as the market consolidated ahead of the US mid-term elections. With the results available only late in the day, trading should be choppy today.
Euro/dollar only treaded water on MOnday and should see sideways to higher trading today.
Initial resistance is at 1.2750. Above this level, resistance is seen at 1.2798. Strong resistance is then seen at 1.2830.
Immediate support is at 1.2695. If 1.2685 breaks, then expect the euro/dollar to challenge 1.2625. Distant support is at 1.2530.
Oscillators are declining.
NEAR-TERM: Mixed with bullish bias
Dollar/yen marched higher to the highest level since October 27 and tested the key 118.25 50-point pivot that targets 117.75 and 118.75. Too much too fast, it should trade sideways to lower now.
Below 117.75, dollar/yen has 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. 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.
Oscillators are rising.
MEDIUM-TERM: Slightly bullish
Sterling/dollar fell for the third consecutive day on Mondday but it should now trim some of these losses. advanced on Wednesday and recovereed more of the Monday's loses. The upside lookks fairly limited.
Above 1.9020 there is strong resistance at 9065. Further resistance is seen at 1.9100.
Immediate support is at 1.8950 from a pivot low. Further support is pegged at 1.8910. That is followed by 1.8850.
Oscillators are declining.
MEDIUM-TERM: Slightly bearish
Dollar/Swiss rallied to its lowest level since October 26 on Monday but should now consolidate.
Below 1.2520, dollar/Swiss franc has strong support at 1.2475. Distant support now comes at 1.2405.
Above 1.2580, the pair has resistance at 1.2640. Distant resistance is at 1.2708 from a pivotal high.
Oscillators are mixed.
MEDIUM-TERM: Mixed to slightly bullish
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