Monday March 26, 2007 - 12:48:33 GMT
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Daily Forex Market Commentary for March 26, 2007
GFT Daily Forex Market Commentary for March 26, 2007
Forex Market Commentary by Cornelius Luca, Currencies Analyst, GFT
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The dollar rallied on Friday, as expected, after reversing early losses, and a strong report on US existing home sales was of help. The immediate outlook is positive, but the US currency is facing significant resistance at nearby levels.
Euro/dollar fell for the second day on Friday from Wednesdayâ€™s two-year high in line with a bearish reversal formation. It closed below 1.3300, the trendline rising since March 9, and the outlook is now negative. But the pair must break another significant support to confirm this view.
Initial support is at 1.3240. Below this level, the next floor is at 1.3220. Distant support is at 1.3200.
Initial resistance is at 1.3330. Above 1.3385, the euro/dollar retains resistance at 1.3410, 1.3435 and 1.3475. The pair then has distant resistance at 1.3610.
Oscillators are declining.
The dollar/yen recouped early losses to close unchanged on Friday. It got stuck in an inside range, so we need a bit more information. The outlook is mixed.
Initial resistance remains at 118.25 from a 50-point pivot that targets 117.75 and 118.75. Distant resistance follows 119.25 and then at 119.65.
Immediate support is still seen at 117.70. The key support level is at 116.85 from a 50-point pivot which targets 116.35 and 117.35. Distant support I sat 115.50.
Oscillators are mixed.
Sterling/dollar fell on Friday as well in line with the bearish reversal formation seen a day earlier. The pair should edge lower today, but strong immediate support at 1.9575 must be overcome.
Strong support follows at 1.9550. Below 1.9500, the pair has further support at 1.94450. Distant support is now seen at 1.9375.
Initial resistance is at 1.9645. Next levels are 1.9725 and 1.9755 from a Fibonacci retracement level. Above 1.9830, resistance is pegged at 1.9915 from a pivot high.
Oscillators are mixed.
MEDIUM-TERM: Slightly bullish
Dollar/Swiss rallied to a 10-day high on Friday, so it finally extricated itself from a week-long inside range. The immediate outlook seems positive.
If 1.2210 breaks, then the dollar/Swiss franc should march further to 1.2230. Distant resistance comes at 1.2290.
Initial support is at 1.2150. The next level follows at 1.2110. Support is then seen at 1.2070. Below a Fibonacci retracement level at 1.2030, dollar/Swiss franc has strong support at 1.2000. Below 1.1970, there is a pivotal low at 1.1901.
Oscillators are rising.
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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