Wednesday November 8, 2006 - 14:07:32 GMT
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Daily Forex Market Commentary-11/08/2006
Daily Market Commentary for November 8
GFT Daily Forex Market Commentary by Cornelius Luca
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The dollar sank aggressively in early US Tuesday trading but then recovered some help from the strong US stock indices.
Euro/dollar surged to a six-week high of 1.2818 in early US trading but hen gave back about half of those gains. With no new US data to be released today, choppy trading should persist.
Above 1.2818, resistance is at 1.2873. Above this level, strong resistance is then seen at 1.2940 and 1.3010.
Immediate support is at 1.2750. If 1.2695 breaks, then expect the euro/dollar to challenge 1.2625. Distant support is at 1.2530.
Oscillators are mixed
NEAR-TERM: Mixed with bullish bias
Dollar/yen sank sharply early on Tuesday and reached tested 117.24 before recouping about half of those losses. Expect more of the same today, but with less punch.
Below 117.45, dollar/yen has distant support is at 116.85 by a 50-point pivot, which targets 116.35 and 117.35.
Above 118.00, there is resistance from the the key 118.25 50-point pivot that targets 117.75 and 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 rallied to a six-day high of 1.9121 before edging lower. It should attempt to challenge the high price of the uptrend and the market will take its cues from how the Cable performs there.
Above 1.9121 there is strong resistance at 1.9205. Further resistance is seen at 1.9222.
Immediate support is at 1.8995. That's followed at 1.8950 bya pivot low. Further support is pegged at 1.8910. That is followed by 1.8850.
Oscillators are mixed
MEDIUM-TERM: Slightly bearish
Dollar/Swiss recovered approximately half of its losses on Tuesday and should consolidate more today.
Below 1.2470, dollar/Swiss franc has strong support at 1.2438. Distant support now comes at 1.2405.
Initial resistance is at 1.2545. 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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