Friday July 27, 2007 - 12:57:36 GMT
Share This Story
GFT - www.gftforex.com
Daily Forex Market Commentary for July 27, 2007
Friday, July 27, 2007 8:00 GMT
Daily Forex Market Commentary
By: Cornelius Luca, Currencies Analyst, GFT
Visit GFT to learn more
Unwinding of carry trades dragged the commodity currencies and the pound down and propelled the yen into stratosphere on Thursday. The US indices are suffering a minor (for now) meltdown and the housing sector is naturally suffering. Expect more of the same today, and the US GDP and the U of Mich report should not have much impact.
The overbought euro/dollar reduced some of its significant losses made on Wednesday, but by and large didnâ€™t do all that much. Sell again on a bounce. Initial support comes at 1.3693. Next level is at 1.3625. Distant support is at 1.3560. Resistance now comes at 1.3770. If the euro/dollar manages to break above the pivot high at 1.3853, then look for a test of the resistance at 1.3900 and the uptrend is back in the game. This is unlikely.
Oscillators are mixed.
NEAR-TERM: Mixed with downside bias
Dollar/yen collapsed to a three-month low amid liquidation of standard yen crosses and carry trades. It formed a head-and-shoulders pattern, and is close to the target at around 118.00. Selling pressure should continue, but not before dollar/yen makes a corrective bounce. Initial resistance looms at 119.20. Strong resistance now comes at 119.65 from another 50-point pivot that targets 119.15 and 120.15. Strong support is at 118.25 and targets 117.75 and 118.75. The target of the bearish reversal pattern is at around 118.00. Below this, strong support is at 117.75. Next support at is at 117.12. Very distant support is at 115.50.
Oscillators are falling.
The overbought sterling/dollar fell on Thursday as well but it reduced some of the losses into the close. Sell it again only on a bounce. Initial support is at 2.0420. A break below 2.0390 would signal a slide toward 2.0250. Immediate resistance is at 2.0560. Resistance then remains at 2.0630 and at 2.0654. The next level looms at 2.0765. Distant resistance is at 2.0845.
Oscillators are mixed.
Dollar/Swiss franc fell in an inside range to give up its gains made only a day earlier. Some residual pullback may be seen before the next move up. Immediate support is at 1.2005. Strong support follows at 1.1962. If this pivotal low gives way, then the downtrend is rejuvenated and dollar/Swiss should challenge 1.1835. Resistance is at 1.2085. It would take a break above 1.2165 to increase the odds that a significant low is in place and the pair would shoot for 1.2215. Distant resistance is at 1.2275.
Oscillators are mixed.
NEAR-TERM: Mixed with upside 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."