Tuesday February 20, 2007 - 13:51:14 GMT
Share This Story
GFT - www.gftforex.com
Daily Forex Market Commentary for February 20, 2007
GFT Daily Forex Market Commentary for February 20, 2007
Forex Market Commentary by Cornelius Luca, Currencies Analyst, GFT
Visit GFT to learn more
The dollar edged higher versus the yen, slipped against the euro and the franc and gave up gains versus the pound. Trading was light because of the US holiday. The dollar should edge lower, with dollar/Swiss leading because the pressure from a head-and-shoulders pattern.
Euro/dollar climbed up to close at the highest level since early this year. Expect an attempt to push higher still today.
Initial resistance is at 1.3177. Above 1.3200, the euro/dollar should challenge the pivotal 1.3296 area.
Immediate support is at 1.3135. Next level is 1.3080. Below 1.3030 there is support at 1.2985 and 1.2940. There are two distant pivotal lows at 1.2882 and 1.2868.
Oscillators are rising.
NEAR-TERM: Mixed with upside bias
Dollar/yen struggled higher on Monday as well. However, a double top that targets 117.80 remains in place in place. So, following some mild recovery, the weakness should continue. Of course, all eyes are on the BoJ late Wednesday/early Thursday to see whether is allowed to hike rates. Key level is 119.65 from a 50-pip pivot, which targets 120.15 and 119.15.
Immediate resistance is at 120.15. Above 120.55 there is resistance at 121.05 from a 50-pip pivot, which targets 121.55 and 120.55.
Strong support is at 119.15. Below the pivotal low at 119.00, dollar/yen then has support at 118.25 from another 50-point pivot that targets 117.75 and 118.75.
Oscillators are falling.
Sterling/dollar recovered early losses caused by the misinterpretation of a macro-economics comment made by the Bank of England. It closed unchanged on Monday and should be mixed today as well.
Initial resistance is at 1.9550. The 1.9585 level must break if a further correction may ensue. Next level is 1.9635. Further resistance looms at 1.9676 from a pivot high.
A break below the key 1.9445 level would signal a test of 1.9390.
Oscillators are mixed.
Dollar/Swiss franc hit a 1 Â½-month low on Monday. The downside still seems limited in the short term, so some initial correction is likely. However, the pair formed a head-and-shoulder pattern, which targets 1.2190, so the medium-term outlook is negative.
Immediate support is now seen at 1.2313. Below 1.2285 there is support at 1.2220, but this level should not be seen.
Initial resistance remains at 1.2370. Above 1.2425, resistance remains at 1.2510. There is a pivotal high level is 1.2570.
Oscillators are edging lower.
NEAR-TERM: Mixed with bearish bias
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."