Wednesday July 18, 2007 - 13:30:27 GMT
Share This Story
GFT - www.gftforex.com
Daily Forex Market Commentary for July 18,2007
Wednesday, July 18, 2007 8:00 GMT
Daily Forex Market Commentary
By: Cornelius Luca, Currencies Analyst, GFT
<a href="http://www.gftforex.com/land/index.asp?aid=207"> Visit GFT to learn more</a>
The dollar had a mixed day on Tuesday, as expected, as cross trading dominated the market. The pound and the Aussie advanced, the yen declined, while the euro and the franc marked time. The US data was mildly supportive for the US currency, with the core PPI up 0.3 percent, the industrial output up 0.5 percent and net overall capital inflows up to $105.9 billion in May. The dollar then sank in Asia after Bear Stearns reported large hedge fund losses that suggest a slide in the equity markets.
The overbought euro/dollar again consolidated quietly on Tuesday but rallied in Asia to a new lifetime high. Hold long positions with profit taking only a stop.
Immediate resistance is still seen at 1.3887. A break above it would signal a further aggressive rally to 1.3910 and 1.3945. Distant resistance is at 1.3990. Initial support is at 1.3785. The next level is 1.3745. Below the strong support at 1.3665, there is a distant level at 1.3570.
Oscillators are rising.
Dollar/yen rallied on Tuesday. It should fall today.
Initial support is 121.50. There is a 50-point pivot at 121.05 and this targets 120.55 and 121.55. Strong supports follow at 120.89 and 120.65. Immediate resistance is at 122.20. The key resistance remains at 122.50 from a 50-point pivot, which targets 122.00 and 123.00.123.55. Above the key resistance at 122.50 from a 50-point pivot, which targets 122.00 and 123.00, distant resistance comes at 123.65.
Oscillators are mixed.
Sterling/dollar advanced to a new 26 1/4-year high following a report that annual inflation exceeded the Bank of England's 2 percent target for a 14th month in June. The BoE may have to hike is base rate one more time, but not anytime soon. Hold long positions with a tight trailing stop. Above 2.0525 there is resistance at 2.0615. Distant resistance now looms at 2.0720. Immediate support is now seen at 2.0475. Next levels are 2.0405 and 2.0375. Strong, but distant, resistance is at 2.0250.
Oscillators are rising.
Dollar/Swiss franc fell to a new low of the downtrend. The medium-term outlook is still negative, but some weakness is possible today as well. Initial support is seen at 1.1960. Next level is 1.1910. Distant support follows at 1.1883. Above 1.2068, resistance is seen at 1.2100. Next level comes at 1.2175. Distant resistance is at 1.2235.
Oscillators are falling.
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."