Thursday August 2, 2007 - 12:58:28 GMT
Share This Story
GFT - www.gftforex.com
Daily Forex Market Commentary for 08/02/07
Thursday, August 2, 2007 8:00 GMT
Daily Forex Market Commentary
By: Cornelius Luca, Currencies Analyst, GFT
Visit GFT to learn more
GFT Daily x Market Commentary
The dollar failed to cut new paths on Wednesday, despite aggressive and choppy trading, but gave us all a scare in overnight trading when it fell briefly below 118 yen. The worst of the equity market correction and of the subprime crisis seems to be behind us, so the market is consolidating and looking for new direction. We may have to wait until Friday, when the US non-farm payrolls report is due, before this direction becomes clear, but the bias for the dollar/Europe is on the downside.
The euro/dollar closed little changed on Wednesday after reversing early losses. The short-term outlook is bullish.
Resistance remains at 1.3732. Strong support follows at 1.3775. There is a pivotal high at 1.3853. Distant resistance is now pegged at 1.3935.
Initial support is still in place at 1.3665. Support follows at 1.3625 from the 38.2% Fibonacci retracement level of the June 13 â€“ July 24 leg of the uptrend and then at 1.3605. Next level is at 1.3555.
Oscillators are mixed.
Dollar/yen fell late further early Wednesday and briefly broke the long-term trendline support at 108.00. Expect it to make another attempt higher today â€“ but not too aggressive.
Immediate resistance is at 119.15. Strong, resistance is seen at 119.65 from a 50-point pivot that targets 119.15 and 120.15.
Below 118.60, support is still seen at 118.25 from a 50-point pivot that targets 117.75 and 118.75. Next key level is at 118.00. Distant support looms at 116.75.
Oscillators are mixed.
NEAR-TERM: Mixed with upside bias
The sterling/dollar reversed earl losses to make the expected upmove on Wednesday. The initial bias is still upward.
Initial resistance is at 2.0380. Further resistance is at 2.0430.
Immediate support is at 2.0285. A break below the 2.0245 level would signal a further slide to 2.0200. Only a break below this level would confirm that a peak is finally in place.
Oscillators are declining.
Dollar/Swiss franc reversed from a two-week low to close up on Wednesday. Sideways to lower trading is now likely.
Immediate support is seen at 1.2020. Strong support follows at 1.1962. If this pivotal low gives way, then the downtrend is rejuvenated and dollar/Swiss should challenge 1.1835.
Initial resistance is at 1.2065. Next cap remains at 1.2140. It would take a break above this level to increase the odds that a significant low is in place.
Oscillators are mixed.
NEAR-TERM: Mixed with downside 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."