Monday January 15, 2007 - 15:49:15 GMT
Share This Story
GFT - www.gftforex.com
Daily Forex Market Commentary for January 15, 2007
GFT Daily Forex Market Commentary for January 15, 2007
Forex Market Commentary by Cornelius Luca, Currencies Analyst, GFT
Visit GFT to learn more
The market was choppy on Friday, as expected, with the US retail sales report great only the surface. The dollar sank further against the pound and slipped a little versus the euro and the franc. Dollar/yen ended little changed and this warns of a pullback. The US currency should struggle higher today.
The euro/dollar recovered from a seven-week low on Friday, but remains under the pressure of a slanted double top targeting the 1.2690 area. While the bias remains on the downside, the pair must close below 1.2925 to trigger further losses.
Below 1.2868, the pair has strong support at 1.2820. A close below this level would signal a further significant decline to 1.2760.
Above 1.2970, euro/dollar has resistance at 1.3015.
Oscillators are falling.
NEAR-TERM: Slightly bearish
Dollar/yen climbed to a marginally new 13-month high on Friday. While it closed unchanged, raising the risk of a corrective decline, it remained comfortably above the psychological 120 mark. Sterling/yen crosses should provide direction again.
The pair now has strong resistance at 121.05 from another 50-pip pivot, which targets 121.55 and 120.55. There is a pivotal high at 121.40.
Initial support is at 120.15. Strong support follows at 119.65 from a 50-pip pivot, which targets 120.15 and 119.15. Distant resistance is seen at 118.80.
Oscillators are rising.
Sterling/dollar rallied sharply on Friday as well, a day after the BoE surprised the market with a rate hike. The move is overdone and Cable should decline, but donâ€™t sell without confirmation.
Immediate resistance is at 1.9630. Above it, the pair has strong resistance at 1.9695.
Below 1.9284, support comes at 1.9223 from a Fibonacci retracement level. The next big level is 1.9180. If it can break below it, then look for a sharp leg of the decline.
Oscillators are mixed.
MEDIUM-TERM: Mixed with downside bias
Dollar/Swiss franc hit a new high for the uptrend on Friday before reversing gains. The pair should edge lower still before resuming its uptrend.
Initial resistance is at 1.2528. Above 1.2550, resistance comes at 1.2660 from the target of a bull flag.
Immediate support comes at 1.2430. That is followed by 1.2385.
Oscillators are rising.
NEAR-TERM: 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."